The government on Wednesday shelved a so-called "fast-track gas field development scheme" that aimed to increase the country's gas supply on an urgent basis as Petrobangla failed to have any contractor carry out the task since September 2009.
Prime Minister's Energy Adviser Dr Towfiq-e-Elahi Chowdhury Bir Bikram at a meeting expressed dissatisfaction as Petrobangla failed to carry out the government's decision to increase gas production on an urgent basis, meeting sources say.
The meeting also discussed other gas related issues including headway in the tender for installing a Liquefied Natural Gas (LNG) Terminal at Maheshkhali, construction of a major pipeline from Sylhet to Ashuganj to double gas production from the three Chevron gas fields, and activities of Bangladesh Petroleum Exploration Company (Bapex).
The meeting noted that all of these schemes were running behind schedule.
Of these, status of the fast-track scheme that aimed to quickly increase gas production by 150 million cubic feet a day (mmcfd) was the worst. High officials from the energy ministry, Petrobangla, Bapex, Gas Transmission and Distribution Company Ltd and other organisations concerned attended the meeting held at the Prime Minister's Office (PMO).
The fast-track scheme was undertaken as one of the several measures to increase gas supply. Presently, there is a demand of 2,500 million cubic feet gas per day (mmcfd) against a supply of 2,000 mmcfd. Under the fast-track gas field development scheme, 25 companies from the US, UK, Australia and other countries took part in a tender floated by Petrobangla in September 2009.
The selected company was supposed to develop and produce gas by drilling six wells in existing national gas fields and hand over the wells to Petrobangla. The contractor would also carry out 3,100 line kilometres of seismic survey in these fields.
However, Petrobangla failed to handle the tender properly, allegedly due to "external pressure" to select certain bidders. It picked a Polish company Krakow that proposed to undertake drilling work using a three-decade-old rig.
After Krakow was awarded the job, it pulled out from the assignment a couple of months ago saying it could not handle the Titas gas field leakage. Krakao was supposed to carry out its tasks in Bangladesh Gas Fields Company Ltd (BGFCL) and Sylhet Gas Fields Ltd (SGFL) that are currently producing around 900 million cubic feet per day (mmcfd) gas, which represents a little less than half of the country's daily gas consumption.
Against this backdrop, the meeting at the PMO discussed alternative solutions for increasing gas production. It was discussed that Bapex may go for a joint venture with foreign state-owned companies to explore and develop oil and gas resources in the hill tracts. The state-owned companies from China, India, Thailand and Russia have expressed their keenness to work with the government in the energy sector.
The meeting also discussed progress on the cross-country pipeline between Sylhet and Ashuganj to evacuate more that 900 mmcfd new gas from Chevron's gas fields in Bibiyana and Moulavibazar by 2013. The Gas Transmission Company Ltd (GTCL) is preparing tender documents in this regard and has identified the pipeline route. The energy adviser asked the GTCL to speed up the process.
The meeting further discussed tapping the underutilised Shahbazpur gas field in Bhola island where the government is setting up a gas-fired large power plant. The meeting reviewed progress of the LNG Terminal Project which would be implemented to facilitate import of LNG containers from the Middle East at a rate of 500 mmcfd gas, which would be supplied to the national grid.
A government committee headed by a former Petrobangla chairman is dealing with the tender for this project which is now running a few months behind schedule. The World Bank is funding the scheme. Sources say 10 international companies have submitted their pre-qualification documents with the authorities. The companies are GDF Suez LNG Supply, Luxembourg, Golar LNG Energy LTD, Bermuda, Teekay LNG Partners LP, Canada, Vitol Asia PL of Singapore, Samsung C&T Corporation, Korea, Astra Oil & Excelerate Energy Consortium, Singapore, Hiranandi Electricity Private Ltd, India, Ros Roca Group, Spain, BW Gas AS, Norway and Unination Energy Ltd, Bangladesh.
Of these, two companies -- BW Gas and Unination Energy -- did not provide bank draft. As per the tender rules, they are supposed to be considered disqualified. But the tender committee has yet to disqualify BW Gas. The committee also has not yet announced the list of qualified bidders.
Sources say the government has selected the US firm CH-IV International as consultant for the terminal project. The US firm will provide support to Petrobangla for construction and execution of the LNG Import floating terminal.
This company is yet to be appointed as the consultant as the World Bank has not given its green signal.
News Source: The Daily Star