The New Nation - Internet Edition

Staff Reporter

Chief Adviser's Special Assistant for Energy and Power Dr M Tamim yesterday argued for gas price hike to please international oil companies (IOCs), as their investment is necessary.

Investment of IOCs is urgent to extract additional gas from the existing fields for a quickest resolve of the present crisis, Dr Tamim said at a seminar in the city yesterday adding, "But, IOCs will not be interested to invest unless the gas price is increased."

Responding to experts' suggestion to employ the state-owned exploration agency BAPEX to increase gas exploration, he said "But BAPEX should not be given all responsibility alone as there is a fund constraint."

Dr Tamim said that additional 7 trillion cubic feet (TCF) of gas could be extracted from the country's existing gas fields. "But it needs about US$ 8-10 billion to invest to extract the additional gas. The major problem is to find this huge tradable international fund."

The country at present is experiencing gas shortage of about 200 million cubic feet per day (MCFD) against a demand of 2,000 MMFC. For gas shortage, power generation is being reduced by 700 megawatt when the country is producing about 3600 MW against a demand for more than 5,000 MW.

Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Centre for Policy Dialogue (CPD) organised the dialogue on "Energy or Development: Options and Strategies for Bangladesh" at Bangladesh China Friendship Conference Centre.

The CA's special assistant also said that hydrocarbon exploration in deep sea, development of coal sector and setting up of nuclear energy-based power plant could be other options to resolve the crises in the long run.

FBCCI president Annisul Haq said the country's entrepreneurs are facing acute problem as, without knowing about the future energy supply, they are importing capital machineries either to extend their present production units or to set up new units.

Emphasising on drafting a coal policy and taking steps for coal sector development, he urged the political parties to immediately wind up the debate on coal sector for the sake of country's interest.

Former BUET vice chancellor and chief of coal policy formation committee Prof Dr. Abdul Matin Patwari said the country will need 38,000 MW of additional electricity by 2025 if the GDP growth rate is taken at 8 percent per year.

This additional electricity could be generated by using coal, he said.

Energy Secretary Mohammad Mohsin said the draft coal policy will be placed before the Cabinet Committee soon for approval.

With CPD chairman Prof Rehman Sobhan in the chair, Power Secretary M Fouzul Kabir, Chittagong University Prof M Shamsul Alam and Asia Energy chief Gary Lye also spoke at the function.