Tuesday, June 2, 2009

US companies to invest in coal sector

R Akter

US companies are keen to invest in Bangladesh’s coal sector, another promising energy turf after natural gas where foreign firms, including US-based oil majors, are doing brisk business. State Minister for Power and Energy Shamsul Haque Tuku informed about the proposals following US Ambassador James F Moriarty’s meeting with him at his Energy Ministry Wednesday.
He said the US envoy apprised him that American energy companies are interested to help Bangladesh in developing energy sector. They particularly want to invest in coal mining after finalization of the coal policy by the government. Following the meeting, the envoy said that he discussed many issues regarding the development of energy sector in Bangladesh and also the assistance for the victims of very recent cyclonic storm AILA that hit the country’s southwest coastal belt.
He noted that the United States would provide necessary assistance for the victims if Bangladesh side sought any help. A number of US companies, including oil-major Chevron, have been operating in the country’s energy and power sector. But this is first time it was learned that US energy companies are also interested in the coal mines.
Bangladesh has about five coal mines in the country’s northern region, having a total coal deposit of 2.5 billion tons. A draft coal policy is now being reviewed by the government. But it has been a great debate-and some spot disturbances too-whether Bangladesh should pursue open-pit coal mining or underground mining to extract the coal for meeting its requirements in power generation.
However, it’s not clear what kind of method the US companies want to apply in coal mining in Bangladesh. A British company, Asia Energy, faced fiery protests from locals for planning open-pit mining. Tuku said a wide area of energy sector’s development was discussed with the US diplomat, which covers the 3rd-round international bidding for hydrocarbon exploration in the offshore and deep-sea areas.
“We’ve sought cooperation in renewable energy sector’s development, like hydropower, solar and wind. They can help us through providing renewable energy technology,” Tuku told. Replying to a question, the power and energy state minister said that the US envoy discussed latest position on the 3rd-round international hydrocarbon bidding which remained pending with government’s top policymaking body.
One US-based company, Conoco Philip, responded for 8 deep-sea blocks in the bidding. We informed him that the issue now in a decision-making process. Soon we’ll take the decision. He also said the Petrobangla-Chevron dispute over a pipeline wheeling charge also came up for discussion.
Replying to another question, he said the government is discussing the issue of readjustment of petroleum-fuel prices. Anytime, a decision may come on this issue although the government is yet to decide whether it will be upward or downward adjustment.
Source: Weekli Economic Times, Bangladesh

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