source – AP:
Bangladesh has awarded three offshore blocks to two global energy companies to explore for gas in the Bay of Bengal, a senior energy official said Tuesday.

The U.S.-based ConocoPhillips and Ireland’s Tullow Oil could start exploration work by early next year, said Mohammad Muqtadir Ali, chairman of the state-owned Bangladesh Oil, Gas and Mineral Corporation, or Petrobangla.

He said the decision came Monday from a Cabinet committee on economic affairs, the highest body to deal with economic issues, as the nation seeks new sources of gas amid a forecast that its current reserves will run out by 2014-15.

Ali, however, said the companies would not be allowed to explore for oil and gas in disputed waters, also claimed by India and Myanmar, in the Bay of Bengal.

“We will not allow them to work in the disputed waters,” he told The Associated Press by phone.

The official said the oil companies are expected to invest a total of $160.5 million in line with their initial bidding estimates for the exploration work. It will need years to complete the exploration job, he said.

Officials of the companies could not be immediately reached for comment.

Bangladesh has said it will fight internationally to establish its rights over the disputed waters, and is preparing to file its claims to the United Nations for a resolution. India and Myanmar claim the areas fall within their maritime boundaries.

Last year, Bangladesh’s military-backed interim government divided the country’s sea territory into 28 blocks in the Bay of Bengal and invited exploration bids, but failed to get much response apparently because of the dispute.

In November 2008, tensions mounted between Myanmar and Bangladesh after Myanmar escorted a South Korean gas exploration company into territory also claimed by Bangladesh. Both countries deployed their navies and finally ended the stand off with high-level diplomatic negotiations.

The government has recently asked energy authorities not to allow any new gas connections since the country is facing up to 250 million cubic feet in shortages of gas each day.

Currently, Sangu gas field, operated by Britain’s Cairn Energy, is the country’s lone operating offshore gas field.

Bangladesh has proven natural gas reserves of up to 15 trillion cubic feet.

Foreign companies have invested millions of dollars to explore and produce gas in deals with the state-run Petrobangla.

Power is the key factor for any development because its the key element of activating production.
The port city and its suburbs continue to suffer from acute power shortage despite the move to increase power generation in two units of Raozan power plant by diverting gas there from the Chittagong Urea Fertiliser Ltd (CUFL).

The government indefinitely suspended the operation of the CUFL on April 26 to save 54 million cubic feet (MCF) gas to be diverted to the two units for smooth power generation. Each unit has the capacity of generating 210 megawatt (MW) power.

The Power Development Board (PDB) officials hoped that the move would help bring down the daily power shortfall to 150MW from 250MW in Chittagong city.

But power shortage in the port city and its adjoining areas now stands at 220 to 230 MW. Despite getting additional gas to generate more power since April, PDB has failed to reduce power outage in the city substantially.

Chief Engineer of PDB Chittagong (Southern Zone), Sujit Chakma admitted that despite getting additional gas at the two Raozan units, they were not able to generate power to capacity.

The PDB now gets around 405MW in off-peak time (day) and 410MW in peak time (night) against the daily demand of 500MW (day) and 630 to 640MW (night).

The PDB requires around 100MCF gas to run its five gas-fired units except the Kaptai plant but it now gets 80 MCF.

Meanwhile, CUFL officials expressed concern over the suspension of production at the factory with a capacity of producing 1,400 tonnes of fertiliser a day.

“Initially we were told that the factory would remain closed for two months. But now we hear that it will be out of operation till September. The factory incurs a loss of Tk 1.4 crore daily,” said a top CUFL official seeking anonymity

Related :
Nuclear fusion power plant.

DEMO (DEMOnstration Power Plant) is a generic name for proposed nuclear fusion power plants that intend to build upon the expected success of ITER. Whereas ITER’s main goal is to produce 500 million watts of fusion power for at least 500 seconds, the goal of DEMO will be to produce at least four times that much fusion power on a continual basis. This level of power production (2 gigawatts) is on the scale of a modern electric power plant.

While the final design of DEMO will depend to a large extent on the results obtained from the exploitation of ITER and other fusion experiments including IFMIF, it is envisaged that a programme of research and development activities in preparation for DEMO will be coordinated by ‘Fusion for Energy’ to perform studies, validate technologies, develop prototypes, etc.

Discussion at CIRDAP Auditorium Dhaka on 23 rd June 2009. Advisor of Bangladesh Prime Minister, Members of the Parliament, Energy sector researchers, analysts, business leaders, Entrepreauner, local and NRB energy professionals participated in the roundtable discussion. One NRB energy professional presented the key note paper. Editor EP Mollah Amzad Hussain moderated the very interactive discussion. This write up will attempt to salient features of the key note speech.

Bangladesh is one of most thickly populated small river delta. Very fertile land, easy to plough and grow food grain makes its population extremely reliant on agriculture for years. A country subjected to frequent visits of natural calamities performed wonders in almost attaining food autarky. 150 Million People have two square meals, clothing’s to wear. Natural gas made significant contribution to its industrial growth over the years. These brave innovative never say die people are now suffering from energy crisis, fuel supply crisis. It is not that the country does not have resources. It needs approprpriate strategy, sound implementable energy sector planning, good governance and focussed managerial capability to explore and exploit its resources.

Present Situation

• Bangladesh suffering from disquieting energy crisis.

• Present Power Demand is about 5500MW, Generation ranges 3200-4000MW.

• 20% power plants are over aged and fuel inefficient. Performs infrequently.

• Power shortage creates severe load shedding.

• Gas shortage impedes power generation.

• Energy crisis already stalled industrial growth.

• Operation of existing industries, trade and commerce are facing serious stagnancy.

• Insignificant progress has been made in rural energy supply.

• Exploration and development of natural gas resource has almost reduced to zero. Exploration of coal continues to remain uncertain.

• Insignificant development of renewable energy.

• No meaningful progress of regional energy co-operation.

• Small hardcore group of technical experts and energy professionals are dominated by inefficient politically blessed civil and military beauracrat.

• No Petroleum Engineer, Energy Economist, Professional Miners are now in active service.

• Public sector companies lack required capacity.

• System loss –theft and pilferage are rampant.

• Absence of market oriented energy pricing encourages inefficient use.

• IOC and IPP development & operations are not monitored professionally.

The present energy situation is replete and the reasons for this are highlighted here. It deserves mentioning here that Bangladesh does have significant natural resources. But for lack of appropriate strategy and poor governance it has failed to explore and exploit it to serve the national interest. Inefficient and ill motivated beauracrat dominates professionals. Politicians are misguided by beauracrat; organised energy sector mafia syndicate almost destroyed the basic fabric of energy sector management.

Gas Reserve situation

• Absence of Integrated reservoir management of gas resource.

• No exploration plan or depletion strategy. No program for secondary or tertiary recovery from operating gas fields.

• Drive mechanism not firmly established. Most of the fields are not properly appraised. Even 3D seismic survey remains outstanding in major fields for years.

• Certain quarter believe that Present Proven Reserve would be depleted by 2015.

• IOCs spent 5 years cooling period in blocks 5 & 10 and recently relinquished. Very little activity are visible in other blocks.

• Bapex is not technically or technologically equipped to accomplish assignments in allotted blocks.

• Potential Offshore prospects remain unexplored.

Gas exploration and exploitation in our part of the world is more than 50 years old. Yet we do not have integrated reservoir management of gas resource. Gas fields do not have petroleum and reservoir engineers. Production management is mostly left to technicians.. Hardly any analysis is done on progressive change of gas –water or gas –Condensate production ratio, progressive depletion of bottom hole or well head pressure depletion. No bottom hole pressure survey is done on routine basis , no calliper survey is one , no cementation integrity is carried out.

It is unfortunate that Bangladesh still do not have any exploration plan or depletion strategy of any gas field. The gas field operators do not know at what stage well head compression will be set up for secondary recovery or sub surface compression will be introduced for tertiary recovery.

Drive mechanism – depletion drive or water drive of most of the gas fields are not firmly established. In many countries production management use 4D seismic to assess gas reservoirs .Bangladesh could not carry out even 3D seismic survey of most of its gas fields. Chevron did it for Bibiyana and Moulavibazar. PB did not allow Cairn to do it at Shangu Gas field.

In this situation vested quarter with ulterior motive is panicking the nation that our gas resource would run out by 2015. Huge frontier in onshore and entire offshore remains unexplored, discovered resources not properly assessed. It must be treated as an offence, a crime to pass on educated guess to befool the nation.

Gas Utilization Situation.

• Present Production: 1870-1900MMCFD from 79 wells of 17 Gas fields.

• 3 Petrobangla Companies BGFCL, SGFL & BAPEX from 48 wells of 11Gas Fields Produce 895 MMCFD (47.3%), IOCs from 31 wells in 6 Fields Produce 997 MMCFD (52.7%).

• Capacity of National Gas Grid is Saturated. More than design capacity Withdrawal and absence of on-stream pigging causing low pressure.

• Gas is used in Power (807 MMCFD), Fertilizer (167MMCFD), Others- Industrial, Domestic, CNG , Seasonal & Commercial (912MMCFD).

• All end users are supplied less gas than their demand. Deficit is about 300MMCFD.

• Chittagong Region alone has 70-80MMCFD deficit.

There have been minimum exploration efforts over the last ten years. National exploration and production companies failed to implement exploration and development projects. No meaniningful efforts were made to make BAPEX self sustaining. Petrobangla owned Feni and Chattak gas field and a virgin unexplored structure at Tengratilla were leased out to a tiny Canadian company NIKO in the name of marginal field development. Ignoring companies like Exxon-Mobil, Petronas potential block 9 was leased out to tiny Tullow. Gas demand grew by 8-10% over the last decade yet only Bhangura gas field could be discovered. National companies failed to increase production .In 2005 contribution of national production company to total gas production was 75%. Now after commissioning of Chevron owned Bibiyana and Moulavibazar Gas fields situation has reversed .IOC s supply 52.7% while national producer deliver 47.3% only. The financial backbone of Petrobangla companies will continue to cripple in buying expensive IOC share of gas at higher price and selling at lower price unless pB companies can increase its market share soon.

PB Company GTCL miserably failed to expand its transmission capacity over the last 4 years. It could not even start implementation of Pipeline Compressor stations and other transmission infrastructure implementation in 4 years. Supersaturated transmission grid in efforts to transport higher than capacity gas volume is causing low pressure pockets at load centres. Absence of routine on-stream pigging operation is also affecting effective use of transmission capacity. Transmission system operator can not play with effective line pack. GTCL Director (Operation) apparently has no clues. In about 2500 KM transmission grid there has to be about 150MMCF effective line pack. If Director (Operation) GTCL can play with line pack gas crisis can be somewhat mitigated. Engr Jameel Ahmed Aleem or Engr Sanwar Hussain Chowdhury having exposure to transmission system operation with GASUINE BV Hoallnd must be engaged for GTCL System operation.

Impact of Gas Crisis

• About 700MW power generation Capacity remains idle while nation suffers from about 1800MW power shortage.

• Industrial growth is stalled.

• Existing industries including export earning industries like Garments, Pharmaceutical, Ceramics suffers set back.

• New Entrepreauner are discouraged to risk investment.

The current deficit of power is believed to be 2000MW. It is also being told PDB can not produce about 700MW power for lack of gas supply. In Chittagong area gas supply to CUFL was required to be shut down to divert gas to Raujan power plant. Still gas can not be supplied to Shikalbaha 56MW barge and 60 MW capacity land based plant. Power plants at Ghorashal can not supplied with gas according to demand despite of shutting down operation of UFFG and PUFF. Gas supply constraints has stalled industrial growth in Chittagong completely .All industries are suffering from poor gas supply situation.

Gas Projects Which Failed to Kick off

• All Subprojects conceived in 2005 for seismic survey, pipeline compressor station installations and gas transmission pipelines under ADB financed GSDP failed to even start in four years.

• Cairn did not complete exploration in Magnama and Hatiya.Now they are pressing for additional incentives.

• Petrobangla and GOB failed to assist BGFCL to seal the gas leakage of Titas Gas field.

Petrobangla Companies GTCL, BGFCL and SGFL in about 4 years could not start implementation of some critical projects under GTDP under Asian Development Bank finance. Failure to commence 3D seismic survey of Titas, Bakhrabad ,Habiganj ,Rashidpoor , Kaillashtilla and Haripoor Gas fields if completed by this time could have define some of our prolific gas structures by this time. Implementation of Pipeline Compressor Stations and some transmission pipelines by GTCL could expand transmission capacity and eliminate low pressure problems.

Major Gas field Titas is leaking for four years. Till now no authentic survey to establish the reasons have been undertaken. Some of the Titas wells are in operation for 40 years. No calliper survey of production tubing could be conducted. No one knows whether any or few gas producing pay sands are charged. A shallow thinking Petrobangla Operation Directorate and non technical PB Chairman seems to be groping in the dark. One wonders why Government should not take contingent action to address very important Titas Gas field situation. Can Bangladesh afford a disaster in Titas Gas Field? Who will account for the huge loss of gas from the field?

Coal Situation

• Country is believed to have 65 Tcf equivalents High Heating Value, Low Ash Bituminous Coal reserve in 5 discovered fields.

• There are National Energy Policy, Power System Master Plan, Mines and Minerals Act, Mines & Mineral Rules, Gas Sector Master Plan.

• Policies, acts and law stressed upon economic use of indigenous coal. Yet only we have only one underperforming coal mine- A black elephant.

• Huge poor quality polluting coal from neighbouring country (banned for use in that country) get in legal and illegal routes.

• Of the 5 discovered mines 2 at Barapukuria (119- 506M) and Phulbari (150-240 M) are at Shallower Depth.

• Two Other mines Dighipara and Khalaspeer are at medium depth.

• Jamalgaonj is at significant depth (900-1000M).

• 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.

• Undreground mining inevitably induce subsidence in mine 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, gas formation leading to temporary closure of mining operation an finally 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, Poor record keeping. Mine operation now is extremely vulnerable.

• 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 technology is in practise in many countries to explore 85-90% coal in place ensuring proper safe guard against all impacts.

• Bangladesh is grappling unnecessarily with Coal policy despite having several approved documents.

• Non miners are confusing policy makers raising unnecessary concerns in round table discussions, TV talk shows.

• Government is contemplating about setting up coal plants using imported coal.

• Coal market is as volatile as oil .Market players like Japan , China , India have much higher buying capacities.

• Imported steam coal for Bangladesh considering transportation cost, dredging of river channels to ensure all season access of medium and deep draft coal carrier vessels, setting up of coal terminal will be expensive.

• It will take 4-5 years in any case to set up facilities

• Mining our Own Coal utilising modern mining techniques and appropriate methods by reputed mining companies will be far more economic.

• We need strong regulatory mechanism and good transparent investor friendly policies.

• Our mindset needs complete change to commence coal mining.

• Mine affected community needs to be adequately compensated, properly rehabilitated. Their jobs to be regenerated.

There have been lots of talks about Coal resource exploration and exploitation. Coal is still the major fuel for power generation, steel manufacturing and other industrial use in almost 70 countries. Bangladesh has significant high quality coal resource. Now appropriate proven technology is available to explore 85-90 % of the coal in place. Exploitation of coal can ensure Bangladesh Energy security. Bangladesh already has enabling acts and policies. BHP Billiton the leading mining company discovered a significant shallow reserve at Phulbari. An Exploration and Mining Lease to mine this resource exist between Asia Energy Corporation and Government of Bangladesh. Internationally accredited major consulting companies have produced Water Management plan, Resettlement and Rehabilitation plans for AEC. ESIA and all other documents AEC produced with its Scheme of Development in October 2005. Government was contractually obligated to say yes or no to AEC submission by January 22^Nd 2006. The parallel government of 4 Party alliance forced decision makers to create mess. So called expert committee took almost a year to produce a controversial report. 8 out of 12 members produced note of decent and produced a separate report. Yet Government recognised minority section produced report and commissioned committee to prepare unnecessary coal policy. In four year since then 9 drafts of coal policy prepared. Coal mining never started. In the mean time Hawa Bhaban sponsored organised terrorism in Phulbari area leading to loss of life and property. Coal mafia sponsored agitators created nuisance .Care Taker Government did not sincerely try to dig deep into mining crisis and investigate into reasons for Phulbari Carnage. The present government in 6 months tried to address the situation. It invited NRBs to share their experience of Coal mining and opine on present issues at Barapukuria and Phulbari along with Draft coal policy. NRBs in allotted slots within 3 and half days made significant contribution. Government must take immediate appropriate decision on Barapukuria and Phulbari mining.

Exploration for Petroleum-

• Maritime boundary disputes in the Bay of Bengal must be resolved on top priority basis. Bangladesh must prepare its case for UN taking assistance of NRB professionals. NASA satellites can assist with information related to formation of South Talpatty Island.

• Selected IOCs for undisputed offshore blocks must be engaged without delay.

• IOC holding Magnama and Hatiya exploration must be pushed and supported to complete works.

• Bapex capacity may be scrutinised and it must get all support to build its manpower and resources to accomplish its assigned tasks.

• Dispute with Niko should be resolved and Niko-Bapex JV must resume exploration at Tengratilla and further development of Feni ASAP.Tengratilla and Feni reserve –Resource must be exploited ASAP.

• Block 5 & 10 and other onshore blocks should be leased out in transparent manner.

• Leakage of Titas Gas field must be professionally investigated and redressed on priority basis.

Liquid Fuel: Refinery

• Bangladesh can allow Priavte Sector or Private Public 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 ideal option for future power plants along with gas and coal. LPG can meet domestic and commercial fuel requirement. Even vehicles can use LPG.Naptha can be used as fertilizer. JPO can earn foreign exchange.

At least one more refinery at Mongla can create infrastructure for meeting demands of furnace oil, LPG and other end producrts . Bangladesh can even earn forex through export of some refined products.

CNG

• Government must convert all government vehilcles to CNG within a given target.

• 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 facility 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

If Bangladesh can convert all its vehicles to CNG substantial foreign exchange will be saved .GHG emission from diesel and petrol driven vehicles will be eliminated.

Extraction of NGL

• The extraction of NGL from wet gas stream of Benaibazar and Kaillashtilla is long outstanding. The required plant expansion / setting up new plant at Kaillashtilla 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 requirement of out of gas grid fuel requirement.

During formal inauguration of gas production from Beanibazar Gas field in 1998 PM Sheikh Hasina asked Gas sector managers why the gas plant from the driest gas field Feni was used for the wettest Beanibazar gas field. The present advisor to PM promised to set up proper plant at Bibiyana in two years to extract NGL. It is 11 years since 1998 Benaibazar gas field is almost on the verge of depletion. The promised gas treatment plant at Beanibazar and expansion of NGL extraction facility at Kaillashtilla remain outstanding.

Renewables

• Possibility of expansion of Karnaphully Hydro power plant may be explored.

• All possible mini and micro hydro prospects may be explored.

• All required incentives for solar power expansion must be provided.

• Possibility of using solar panel for irrigation pumps may be explored.

• Mandatory provision for solar panels for all new multi-storeyed buildings in major city areas, existing shopping malls may be made.

• Private sector may be encouraged to set up wind power generation wherever feasible.

• Encourage all forms of bio fuel generation

(From animal refuse, and other source)

• Some plants using municipal solid wastes in major cities.

• May explore power generation from saw dust, sugar cane wastes.

Bangladesh should make a target to produce at least 10% of its power demand from renewable source by 2020. Target of 20% will be overambitious and will not be achieved.

Nuclear

• Make long term plan to grow competent professionals to operate nuclear power plant.

• Brilliant students at pre university levels can be hand picked to get proper education and training in proper overseas academy or uni to grow as nuclear professionals.

• Adopt state of the art safe technology to generate nuclear power.

• Prevailing Geo Political reality may make Bangladesh efforts on Nuclear power generation Route very challenging.

Regional Energy Trading

• Engage with India, Myanmar and Nepal to access Hydro power.

• Explore possibility to access Indian grid for power for peak shaving for a short term.

• Engage with China and Myanmar to access Gas from Myanmar.

The hydropower projects of Nepal and Bhutan are mostly developed by India .Both the countries are in long term conatrct to sell most of the power produced to India. If Bangladesh wants to access the hydropower from Regional source it has to talk with India along with Nepal and Bhutan.

Source : www.energybangla.com

Bangladesh has energy shortage as per  sufficient production capacity. and the reson is lack of strong political commitment government could not take decision of appropriate mining strategy to economically.

One of the major challenges the energy sector is facing is to find out ways how to economically exploit its substantial high quality coal reserve .The predominantly mono fuel –Natural Gas dependent power generation is in limbo,The proven gas resource is widely believed to be exhausted in not too distant future.

Surfing internet we get some  article  and like to recommand Visit    “Open Pit Mining: Challenges & Benefits BY Engr. Khondkar Abdus Saleque ” 

2.

New method LTCC to avert row over coal mining in Bangladesh

The gas supply infructucture is taking innitiative Determining to i

To conduct oil and gas exploration properly and implement the projects fast.

The Executive Committee of the National Economic Council (Ecnec) yesterday approved a Tk 340 crore project that would help Bapex increase its oil and gas exploration capability and Bakhrabad Gas Field Company to boost gas supply to Chittagong within two years.

Under the project, the Bakhrabad Company along with Bapex will build a 65-kilometer 10-inch pipeline from the recently developed Semutang gas field up to Chittagong. .