EP Report
The government is planning to replace some irrigation pumps with solar panels in Chalanbil areas, set up some small hydropower plants in small river streams and install 50 MW capacity wind turbine in the coastal areas as a short-term measure to face the nagging power crisis. And in the longer-term, the government is in the process of installation of nuclear power plant.
Prime Minister’s Adviser for Energy and Power Tawfiq-E-Elahi Chowdhury revealed the recent government plans for overcoming the country’s energy crisis besides ongoing efforts of energy conservation and efficiency at a roundtable titled “Strategy for Sustainable Energy” at CIRDAP Auditorium on June 23.
He said the government is undertaking the interim steps as the resource diversification would take some time while the people will not remain idle and will want electricity. “We’re giving emphasis on power generation as well as on energy conservation and efficiency.” He said the Prime Minister does not hesitate to take decision as all know while some direction on solving energy crisis has been given in the budget.
“We’ll fulfill the government commitment… we’ll win,” said the Prime Minister’s Adviser, seeking cooperation from parliament members, energy sector experts, academics, economists and trade body leaders, who attended and took part in the discussion of the roundtable.
He said a crisis period opens up the thinking process and stimulates innovation while no problem can stand before human being if they can utilize the innovations. He added that some steps have been taken to face the power shortage. “We should overcome the Bibiyana gas field within a couple of weeks. We have undertaken initiatives for dual-fuel power plants and few dedicated single-fuel power plants. We should think deep before taking any big decision on coal mining.”
Energy and Power, the country’s first and only fortnightly on the energy sector organized the roundtable, marking its step into 7th years of publication. EP Editor Mollah Amzad Hossain gave the address of welcome to kick off the roundtable while an energy expert from among non-resident Bangladeshis Engr. Khondkar Abdus Saleque presented the keynote paper.
The Prime Minister’s Adviser disclosed the government’s interim and long-term plan to face the energy crisis as well as dwelt on the energy sector programs as reflected in the national budget 2009-10 and the election manifesto of the ruling party as speakers at the roundtable expressed concern over the situation and put forward recommendations to overcome the crisis.
Engr. Khondkar Abdus Saleque
Presenting the keynote paper of the roundtable, Engr. Saleque gave an overview of the present energy situation and problems being suffered by the country’s energy sector, and suggested possible short, medium and long-term strategy to overcome the crisis.
Bangladesh is suffering from disquieting energy crisis with electricity generation ranging from 3,200-4,000 MW against present demand of 5,200 MW. Around 20 percent of the power plants are over-aged and fuel inefficient. They perform infrequently, as a result.
Energy crisis stalled industrial growth and operation of existing industries, trade and commerce are facing serious setback while electricity shortage impedes power generation. The inefficient power plants consume huge gas, with which the present demand for electricity could be met if the plants were energy efficient.
Exploration and development of natural gas resources has almost reduced to zero while exploration of coal continued to remain uncertain, development of renewable energy insignificant and there is no meaningful progress of regional energy cooperation.
Small hardcore group of technical experts and energy professionals are dominated by inefficient politically blessed civil and military bureaucrats while no petroleum engineer, energy economist and professional miner is in active service. Public sector companies lack required capacity, pilferage and theft are rampant. “The patriotism of the management group is questioned… we can construct one Jamuna Bridge every year if we can stop theft and pilferage.”
Absence of market-based pricing encourages inefficient use of energy while IOC and IPP development and operations are not monitored professionally. “Industries might have encouraged to use energy efficiently if the price increases by an affordable level.”
Present proven gas reserve is believed to be depleted by 2015 while IOCs spent 5 years cooling period in blocks 5 & 10 and recently relinquished, and very little activity are visible in other blocks. BAPEX is not technically and technologically equipped to accomplish assignments in allotted blocks while potential offshore remains unexplored. Some 1,870-1,900 mmcfd of gas is being produced at present from 79 wells of 17 gas fields. Of which, three Petrobangla companies – BGFCL, SGFL and BAPEX – are producing 47.3 percent from 48 wells of 11 fields and IOCs are producing 52.7 percent from 31 wells in 6 fields. The capacity of national gas grid is also saturated. More than design capacity withdrawal and absence of non-stream pigging have caused low pressure.
Of the present level of gas production, power generation consume 807 mmcfd, fertilizer 167 mmcfd and others like industries, domestic usage, CNG, seasonal and commercial usage consume 912 mmcfd.
About 700 MW of power generation capacity remained idle while the nation suffers from an electricity shortage of 1,800 MW due to the gas crisis. Industrial growth is stalled, existing industries including export-oriented factories like RMG, pharmaceuticals and ceramics suffer setback. New entrepreneurs are discouraged in investment.
All the subprojects conceived in 2005 for seismic survey, installation of pipeline compressor station and gas transmission pipelines under ADB financed GSDP failed to even start in four years. Cairn did not complete exploration in Magnama and Hatiya while Petrobangla and GOB failed to assist BGFCL to seal the gas leakage of Titas Gas field.
There are National Energy Policy, Power System Master Plan, Mines and Minerals Act, Mines and mineral Rules and Gas Sector Master Plan. Policies, acts and laws stressed on economic use of indigenous coal. Yet, we’ve only one under-performing coal mine – a black elephant. Huge poor quality polluted coal from neighboring country (banned for use in that country) get in through authorized and unauthorized manner.
The country is believed to have 65 Tcf equivalent High Heating Value and Low Ash Bituminous coal reserve in 5 discovered fields. Of them, two at Barapukuria (119-506 M) and Phulbari (150-240 M) are at shallower depth, two other mines at Dighipara and Khalaspir are at medium depth and Jamalganj is at significant depth (900-1,000 M). Geology in our coal belt indicate that water saturated soft, sandy, silty overburden at shallow depth is not ideal for underground mining due to poor roof support and presence of strong active aquifer.
Underground mining inevitably induce subsidence in mining command zone at any time during and even many years after mining completion. For multi-seam shallow depth, Barapukuria coal mine subsidence is inevitable impact. Subsidence at very early stage evidence poorly conceived, inappropriate mining technique and method. Barapukuria experienced water flooding and gas formation leading to mine closure and now subsidence. A recent visit of a NRB mining engineer identified poor mine management and operation – no health, safety and environment management plan, no ventilation plan and poor record keeping.
Uncertain situation of gas supply and improper strategy to explore further petroleum resources implies early exploration and exploitation of coal resource to extract maximum with minimum impacts. Well-proven safe technologies are in practice in many countries to explore 85-90 percent coal in place through ensuring proper safeguard against impacts. Bangladesh is grappling unnecessarily with coal policy despite having several approved documents. Non-miners are confusing policymakers raising unnecessary concerns in round table discussions and TV talk shows.
The government is contemplating to set up imported coal-based power plants while the coal market is volatile. Market players like Japan and China have much higher buying capacity. Imported steam coal will be expensive for Bangladesh considering transportation cost, dredging of river channels to facilitate access of medium and deep draft coal-carrying vessels in all seasons and setting up of a coal terminal. It would take 4-5 years in any case to provide the facilities.
Mining our own coal by utilizing modern mining techniques and appropriate methods by reputed mining companies will be far more economic. But we need strong regulatory mechanism and transparent investor-friendly policies. Mine affected community needs to be adequately compensated and properly rehabilitated. Their jobs should be regenerated.
Maritime boundary disputes in the Bay of Bengal must be resolved on top priority basis for petroleum exploration while Bangladesh must prepare its case for UN by the assistance of the NRB professionals. Selected IOCs must be engaged without delay for the undisputed offshore blocks. IOCs holding Magnama and Hatiya exploration must be pushed and supported to complete the works. The capacity of Bapex might be scrutinized, but it should get all support to build its manpower and resources to accomplish its assigned tasks.
Dispute with Niko should be resolved and Niko-Bapex JV should resume exploration at Tengratilla and further development of Feni as soon as possible. Blocks 5 and 10 and other blocks should be leased out in transparent manner. Leakage of Titas Gas field must be professionally investigated and redressed on priority basis.
Bangladesh can allow private sector or public-private partnership to set up at least one more crude oil refinery. Singapore and Netherlands thrive on refinery business which Bangladesh may try to replicate. Furnace oil can be an ideal option for future power plants along with gas and coal. LPG can meet domestic and commercial fuel requirements. Even vehicles can use LPG. Naptha can be used for fertilizer. JPO can earn foreign exchange.
Government should convert all government vehicles to CNG within a given target while use of CNG in irrigation pumps can be explored and river vessels can be converted to CNG/LPG. The price of gas to CNG should not be readjusted. It will encourage use of inefficient appliances. Price of diesel should be made market based. CNG facilities must be expanded in the north-western and south-western region with the expansion of gas grid. Strict monitoring of conversion and fuelling stations must continue.
The extraction of NGL for wet gas stream of Beanibazaar and Kailashtilla remained due for long. The required plant expansion and setting up of a new plant at Kailashtilla fall flat due to mishandling of tender by SGFL. Extraction of NGL will create opportunity to expand capacity of LPG production from our NGL and meet the requirement for out-of-gas grid fuel requirement.
Possibilities of expansion of Karnaphuli Hydro-Power Plant may be explored while all possible mini-and-micro hydro prospects can be explored. Incentives can be provided to expand solar power. Possibilities of using solar power can also be explored for irrigation pumps. Mandatory provision of using solar panels can be imposed for all new multistoried buildings and existing shopping malls in major city areas. Private sector may be encouraged to set up wind power generation wherever feasible while all forms of bio-fuel should be encouraged. Some plants can be set up using municipal solid wastes in major cities. Saw dust and sugarcane wastes can also be explored for power generation.
Key Note Recommendations
NRB brainstorming must have given some important clues to finalize the coal policy. A brief and concise coal policy should be adopted without further delay. Coal exploration under the contracts already signed must be pursued without delay. The country should immediately start installation of some coal-based power plants under PPP. Other coal-based industry may also start construction of their projects simultaneously with the commencement of coal mining. Market growth consistent with the coal production should be ensured to consume entire coal to be produce in the mine while all the future power plants should have dual-fuel provision. All fuel inefficient and age-old plants may be phased out progressively. BERC act may be amended to include upstream segment of petroleum and coal.
BERC must be manned with relatively young, farsighted dynamic professionals to make it effective. Without making BERC truly effective, required FDI may not come to energy sector. Energy companies must be made truly autonomous and allowed to operate commercially. Company board should be constituted with professionals. Efficient use of energy may be encouraged through market-based unregulated energy pricing.
Dr. Eunus Akon
Former Chief Geologist, Atomic Energy Commission
We know all the problems of the energy sector as well as their solutions. But, we could not solve the problems. Although 40 percent of the population has access to power officially, only 10-15 percent has access to power in reality at present. The electricity supply situation in the rural areas reflects the situation.
The present day technology permits open pit mining. But, lack of proper motivation and, sometimes reverse motivation, held back the progress of coal mining. Adequate and proper compensation and rehabilitation can help solve the mining problem.
All concerned reached a consensus for coal mining and are saying mining is a must. But, who will do it. Somebody will have to take the lead. I hope that Prime Minister’s Adviser for Energy Tawfiq-E-Elahi Chowdhury will take the lead.
There are apprehensions over nuclear power. There should not be any apprehension over the option. It’s a very good option for sustainable energy as the fossil fuel will be exhausted ultimately.
Dr Nafis Ahmed
Non Residence Bangladeshi, Independent Consultant
Human resource condition in the energy sector has become critical. We should pay close attention to the problem. Expansion of solar energy during last 4-5 years was very positive. We can think of micro hydro power units as Indonesia using it in rural areas.
Muinul Ahsan
Former Director, Petrobangla
Even if we think that the gas reserve will not exhaust by the year 2015, the energy sector plan should be undertaken considering that the gas will be exhausted by then. Onshore and offshore gas exploration should be immediately planned. Petrobangla expertise is unlikely to help much, but it’s possible to develop mining engineers shortly through providing two-year training to civil engineers.
We’ve a perception that underground mining in Barapukuria will be safe, but there is a serious risk of subsidence. In case of open pit mining, the land can be reclaimed within 10-12 years. Those who are protesting open pit mining, they might be otherwise politically motivated.
Shamsul Islam
Former PDB Chairman
We cannot say the officials in the government lack patriotism. The government is doing fine. We’ll have to consider what resources we have. We are creating pressure on Prime Minister Sheikh Hasina for power. They have also achievements.
We’re trying to make markets the heavens. We’re constructing centrally air-conditioned markets having escalators, but very often we don’t see customers.
Prof. Dr. SM Mahfuzur Rahman
Dept. of Finance, DU
The cost-benefit analysis of coal remained ignored. Before going for coal mining, we’ll have to analyze the cost of mining and possible benefits out of the mining. These things are not being discussed as such. We need to evaluate how much the government would have to pay for the mining and the return on the investment while the cost and benefit of the local people and the people of other parts of the country should also be looked into. Since coal is a non-renewable energy, to whatever extent we will extract, it will be a loss of the nation. So, we’ll have to see whether the nation is getting benefit in consistent with the losses.
We will also have to evaluate the losses of land, population, environment, displacement of structures. Then will have to see who will pay the rehabilitation cost. We’re losing all aspects of the coal mining with the time passes because it will not only give us coal, there are also other minerals, which we can extract and export to other countries. There are also other coal-linked industries in the country. Those could also be benefited out the mine. We must start coal mining project without any delay.
The question of royalty will arise only when we’ll consider export of coal.
Prof Dr. Hossain Monsor
Dept. of Geology, DU
It’s not that we’ll get a good scenario in open cast coal mining. But it will provide us with 90 percent recovery, which will be viable. The coal reserve in Barapukuria is in a shallow depth. Let’s start open cast mining. I urge the government to take measures to start open cast mining. He apprehended whether the Barapukuria coal would be possible to extract after the year 2011.
Annisul Huq
FBCCI President
As a non-technical people, we the businessmen are being confused at every seminars and discussions in this regard. We believe whoever says and whatever they say. We value one’s opinion if he says the gas is not exhausted. But, we want to know from the policymakers: “Should we invest or should we plan for investment?”
The government has inherited the problem as very little of the power generation took place in last 5-7 years. The election manifesto of the ruling party gave a roadmap. We hope the roadmap will be implemented.
Coal is being used across the world. But we’re not being able to use our coal. We have given the mandate to the government for five years. Now, it has to decide. The honeymoon period is over, now the people will want to see the output. It is possible to maintain environment and rehabilitate the people of the mining command areas. The coal resource of Bangladesh is confined only within 100 square kilometer area. Since we will need coal to generate power, we’ll have to start thinking now how we can rehabilitate the people of the area and give them an improved livelihood as compared to present situation.
The businessmen can generate their own electricity if they get diesel at the price of present level.
Prof. Dr Ijaj Hossain
Dept of Chemical Engineering, BUET
Government alone cannot solve this big problem. “It’ll have to generate 4,000 MW in next four years. Is it possible?” It took 40 years to reach the existing generation capacity of 4,000 MW. Some 3,500 MW of electricity is being generated from the old plants. Of which, around 2,000 MW will not be available from these plants in next 4-5 years as the plants will go out of order.
Dr Asaduzzaman
Director, Research, BIDS
We are saying same words frequently for a long time, but it does not get solved. It’s obviously for inaction. I don’t know who is benefiting from this inaction and who is not. “We need to know who’s getting the benefit by keeping the whole population in the trouble.”
It’s true that different opinions open up different ways of solving a problem. But all the problems cannot be solved together. “We have two options of gas and coal in hand. It’s not a love tryst.” Whatever we do with coal mining – be it open mining or underground mining – the parliament members should decide on it. Where are the MPs from the north Bengal. It’s humanitarian problem. The MPs of the region should form a caucus and motivate people through talking to them. There is also a huge divergence among the technical people. Why don’t the government imposing a coal supplementary duty, which the MPs will place before the people of the region to give them a sort of confidence that the whole population of the country bear with them.
The gas reserve would not exhaust so quickly. The gas production might have fallen due to lack of exploration.
Md. Abdul Wadud, MP
Of course, we the MPs from the north Bengal can work in a caucus in this regard, but we a policy decision first. But the opposition political parties are also equally educated. They have also the wisdom what we have. If we try to motivate the people in favor of coal mining, the opposition will also take the course of reverse motivation. “Then, the people will ask us what we’ll believe. What reply we have for them?” We’ll be able to implement it if we get a technically concrete decision. The foreign friends will always look for their benefit, but we’ll also preserve our benefit.
Imran Ahmed, MP
The people of Sylhet have not received any tax for gas. However, I want to start my discussion offering support to the coal tax proposal. It is realistic that the country cannot move ahead without energy. It is realistic too that it would be very difficult to get energy as required. I would like to draw attention of the Adviser to see whether it would be possible to install imported coal-based power plant if our coal extraction is delayed. “We’ll remain one step ahead.”
It’s true that the old power plants are going to be out of order fast.
I think the industries can be provided with subsidized diesel price so they can generate their own power.
Brig. Gen. Enamul Huq, MP
The political decision on the coal mining would depend on the technical decision. He requested the technical people to take a quick decision. We could pass the last January, the peak irrigation season, in some way or other, assuring the farmers that manage it for this season somehow and there will be no problem in the next January. “They will not leave us in next January if we cannot provide them with electricity.”
Abdul Awal Mintoo
Former President, FBCCI
We’re making hue and cry as we’ve problem and we want solution. Who will give the solution? During the period 1998-2000, there was a power generation deficit of 700 MW. Now, the deficit rose to 1,200 MW. The deficit would have been even worse unless the private sector generated 1,400-1,600 MW captive power. Some 80 percent of the factories generate their own electricity.
The gas resources still remained unexplored in Bangladesh. If there is gas, exploration would take around 10 years. If extracted, there is problem in transmission. And if transmitted, there is problem in distribution and there is problem of compressor. “It seems to me seeing the situation that somebody is dieing out of jealousy.”
Using coal started in the year 1708. Nothing is an asset until it explored and used for the well-being of the people. Coal is not an asset until we can use it for poverty alleviation.
Roundtable Recommendations
— To form a caucus of MPs in the north-western region of the country to motivate people for open cast mining of coal immediately;
— To give a concrete technical decision based on which MPs could motivate people in favor of coal mining;
— To adopt a brief and concise coal policy without further delay;
— To immediately start installation of some coal-based power plants under PPP;
— Progressively phase out all fuel inefficient and age-old plants;
— To make energy companies truly autonomous and allowed to operate commercially;
— To encourage efficient use of energy through market-based unregulated pricing;
— To think of micro hydro power units
— to pay close attention to the problem of human resources; to develop mining engineers through providing two-year training to civil engineers;
— To undertake energy sector plan considering the gas will be exhausted by 2015.
— To provide businessmen with diesel at the price of present level;
— To impose coal supplementary duty;
— To install imported coal-based power plant if local coal extraction is delayed;
— To undertake overhauling of fertilizer factories during the peak irrigation season of December-January; prior to the season, there should be adequate buffer stock of fertilizer.
— To replace some irrigation pumps with solar panels.
Source: http://www.ep-bd.com/news.php?cat_id=27&archive=30&namee=ROUNDTABLE
Date: 01 July 2009, Bangladesh