Photo : Messenger
Upon assuming the role of State Minister for Power, Energy and Mineral Resources Nasrul Hamid has outlined an ambitious plan to drill 100 gas wells nationwide. This initiative aims to address the 29,727MW needed to run the power plants and local industries.
However, industry insiders have raised concerns about the feasibility of the plan, viewing it as ambitious. They particularly question the implementation of the plan under the 'Speedy Energy Supply Act.'
Dr Khondaker Golam Moazzem, research director at Centre for Policy Dialogue (CPD), expressed skepticism to The Daily Messenger and said, “The circumstances of the power sector in 2024 are different from the crisis that we faced in 2009. Hence, the speedy energy supply act is no longer needed. This is not just forcing the government to opt for inefficient ways to produce and supply energy, but also putting additional pressure on the customers.”
The Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010 was enacted with the goal of facilitating effective and urgent measures to enhance the generation, transmission, transportation, and marketing of electricity and energy. It aims to ensure an uninterrupted supply of electricity and energy to support various agricultural, industrial, commercial, and domestic activities. The Act also provides for the quick implementation of plans to import electricity and energy from abroad if necessary, as well as for the urgent extraction and utilization of minerals related to energy.
Meanwhile, Petrobangla's failure to execute its previous plan to drill 48 gas wells has exacerbated the gas crisis faced by power plants and private industries. Consequently, the government has been compelled to resort to importing expensive LNG from the spot market.
Expressing dismay, Mokbul E Elahi, former BAPEX director, stated to the Daily Messenger, “I don’t know where the gas wells are. Already, Petrobangla has failed to implement the previous exploration projects. And the tender should be floated in the open market instead of a special act.”
Critics suggest that the government's unveiling of the law aims to benefit its own interests, as projects under this law circumvent the open market tendering process, potentially limiting competition. They claim that Energy Division officials directly engage with companies, resulting in uncompetitive gas prices and project costs.
Professor Shamsul Alam emphasized the need to abolish the Special Speedy Energy Supply Act before embarking on any mega projects. He expressed doubt about Petrobangla's ability to implement the project on time, deeming it unrealistic. He further warned that international energy companies may engage in under-the-table dealings to set prices and costs.
Shamsul criticized the lack of prudence in the energy sector's master plan, characterizing it as whimsical due to its reliance on imported resources.
The recent amendment to the Production Sharing Contract (PSC) by the government, which raised the price, has sparked criticism among experts. Mokbul E Elahi commented, “The government has hiked the price very high; it should lower to keep the price affordable.” He highlighted that the Energy Ministry's offering of $10 for a thousand cubic feet of gas contrasts sharply with India's payment of $6.50, suggesting that Bangladesh should aim for a similar price range.
Elahi's sentiment echoes the call for open tenders, emphasizing that the current gas crisis stems from Petrobangla's shortcomings in conducting effective oil and gas exploration activities. Energy expert Khandkar Abdus Salek asserted, "Today's gas crisis has started due to the laxity of Petrobangla. If they could have properly conducted oil and gas exploration activities, this crisis would not have happened."
Former Cabinet Secretary Khandker Anwarul Islam underscored the government's commitment to ensuring uninterrupted energy supply for Bangladesh's development goals. He mentioned the approval of the draft Quick Enhancement of Electricity and Energy Supply (Special Provision) (Amendment) Bill, 2021, aiming to support Bangladesh's transition to a higher middle-income country by 2030 and a developed country by 2041.
Jannatul Ferdushy