Mineral export can fetch Tk 12,000cr: experts

http://www.newagebd.com/2009/nov/09/busi.html#8

Mineral export can fetch Tk 12,000cr: experts
Bangladesh Sangbad Sangstha . Cox’s Bazar

Bangladesh has deposits of at least 1.74 million tonnes of minerals worth over Tk 12,000 crore in the beach sand of vast areas stretching from Najirtek of Cox’s Bazar Sadar to Teknaf, experts said.

‘The total amount of mineral deposits in the beach sand is estimated to be 4.4 million tonnes. The actual heavily rich minerals are around 1.75 million tonnes,’ said former chairman of Bangladesh Atomic Energy Commission Anwar Hossain.

He said the price of the mineral deposit could be realized through exports which have high demand in the global market.

The valuable mineral sands mostly zircon, ilmenite, magnetite, garnet and rutile could be extracted on a commercial basis from the vast areas stretching from Najirartek of Cox’s Bazar sadar to Teknaf, he said.

The Australian government has evinced keen interest to invest in the sector as newly appointed Australian ambassador to Bangladesh Justin Lee conveyed his government’s willingness to state minister of forest and environment of Bangladesh Hassan Mahmud.

Taking the Australian government’s zeal in this regard, the ministry of power and energy of Bangladesh already formed a nine-member committee headed by a joint secretary of the ministry to see the matter. Joint secretary Ashraf Ali Khan is the convener of the committee.

Ashraf Ali told the agency that an Australian company named Premier Minerals had offered an initial investment of Tk 400 crore for extracting zircon, an expensive mineral resource. But, he said the government is trying to pursue the Australian company for six resource items.

The company would place a report before the government and it will give necessary permission to extract the mineral resources, he said adding that the government will consider it on the basis of the report. The committee convenor said they would bargain with the company about price fixing.

In an initial survey, Ashraf said it was found that each ton zircon is worth about Tk 60,000 and others on an average Tk 6,000.

The mineral resources were first found in Cox’s Bazar in 1960s and later Bangladesh Atomic Energy Commission started diverse researches.

During early 1970s, a study conducted by the Australian government suggested the Bangladesh government set up a pilot plant in Bangladesh.

Probable extraction saw some development as a pilot plant with the support of the Australian government was set up in Cox’s Bazar in 1975 for segregation of mineral resources from sea beach.

BAEC scientists recommended the government set up another plant on a commercial basis but no progress was made so far.

Talking to the agency, scientific officer M Moshruzzaman of Sea Beach Extraction Centre in Cox’s Bazar said the mineral resources are now being extracted on an experimental basis and these resources are being sold too on a small scale as per the demand of various organisations in Bangladesh.

Locals expressed their opinions in favour of extraction of the valuable mineral resources saying that a number of new industries would be set up in the sea-resource areas generating jobs if the government take any step to extract the resources on a commercial basis.

On the contrary, the department of environment of the ministry of forest and environment termed the anticipated extraction of mineral sands as not environment-friendly and said it might jeopardise the environment.

But, said the DoE sources, there is still hope that the rich mineral resources would be extracted keeping the environment safe and secure.

Experts project new deposit of coal, suggests exploration

http://www.bssnews.net/newsDetails.php?cat=8&id=69137&date=2009-11-06

Experts project new deposit of coal, suggests exploration

CHITTAGONG, Bangladesh, Nov 6 (BSS)- Experts has primarily rojected a possible deposit of coal in the hilly areas of Patiya and Chandanish suggesting immediate exploration of the resources.

The experts of Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) told BSS that there is every possibility that there is existence of coal along the five kilometers hilly stretch in the eastern side of Patiya and Chandanaish.

The sources said coal that was in the form of rocky soil structure has been detected in the early seventies in these hilly areas, has turned into coal during the last four decades.

Manager (Geology) of BAPEX Alamgir Hosain told BSS that there is no doubt about the existence of coal in those hilly areas of the district.

But the total quantity as well as quality of coal could not be ascertained without proper exploration, he added.

The BAPEX would seek permission from the Petrobangla for conducting laboratory experiments about the coal deposits in the hilly areas to become fully assured in this regard.

Mohammad Ali, Chairman of Hashimpur Union Parishad under Chandanish, said a survey was carried out in the area by the initiative of the Ministry of Mineral Resources in 1972-73, just after the War of Liberation.

The then survey members told us that the coal deposits in the areas are still at an stage of formation. It would require more 32 or 33 years to extractable while 37 years have already been passed since the survey, he said.

Professor Abdul Haque of the Department of Geography and Environment of Chittagong University Prof Haque said proper initiative should be taken for collecting the coal after conducting a fresh survey in the area with a view to easing the existing fuel crisis in the country.

Environmental impact study before launch of coal-mining

http://www.thefinancialexpress-bd.com/2009/11/05/83427.html

Environmental impact study before launch of coal-mining

M Azizur Rahman

The government will carry out a study to assess social and environmental impacts of coalmining before the launch of long-awaited mining in the northern region of the country for extracting coal, officials said Tuesday.

The United Nations Development Programme (UNDP) has already been requested for funding the study, a senior official of the energy ministry told the FE.

He said the study would help extract maximum quantity of coal utilising the world’s most modern technology.

It would be accommodative with the proposed national coal policy and ensure that coalmining would not be detrimental to the environment and society.

The proposed study would also deal with the compensation issue to ensure smooth and uninterrupted coalmining for safeguarding the country’s future energy security.

It might recommend necessary compensation packages for those affected by both open-pit and underground coalmining across the country.

Foreign direct investment (FDI) proposals worth several billions of dollars remained pending for the past several years due to indecisiveness of the successive governments over coalmining.

“But this time the energy ministry has moved to tap the country’s huge coal reserve potentials on completion of the study,” the energy ministry official said.

Coal policy would also be adopted subsequently, he added.

Apart from the UK-based Asia Energy, South Korean Luxon Global and US-based Global Vulcan Energy have submitted proposals to the Board of Investment (BoI) for investment in the country’s coal sector.

Several local and international companies have recently sought permission to develop the coalmines.

The Geological Survey of Bangladesh (GSB) reveals that the country has high quality coal reserves of over 2.7 billion tonnes, equivalent to 70 trillion cubic feet (Tcf) of gas, which is five times more than the country’s proven gas reserve of 14 Tcf.

Discovery of coal in the country was first reported in late 1950s when an exploratory oil well was being drilled through coal beds in Bogra.

Subsequent explorations resulted in the discovery of the Jamalganj coal deposit at a depth of about 1000 metres from the ground level, having an estimated reserve of 1053 million tonnes of coal.

In 1984-85, the GSB located another coal deposit at Khalaspir (Pirganj) of Rangpur at a shallower depth, with an estimated reserve of 685 million tonnes of coal.

Extractable coal deposit was then discovered at Barapukuria of Parbatipur in Dinajpur at a reasonably shallower depth with an estimated reserve of about 389 million tonnes, where the country’s lone coal-fired power plant is in operation.

Coal deposit of around 572 million tonnes was located by Asia Energy at Phulbari in Dinajpur in 2005.

New co to be set up to increase coal-based power generation

http://www.thefinancialexpress-bd.com/2009/11/01/83116.html

New co to be set up to increase coal-based power generation

M Azizur Rahman

The government will form a new company styled ‘Bangladesh Coal Power Company’ to set up the planned coal-fired power plants and increase the country’s electricity generation by using the mineral, officials said Saturday.

The power ministry has already decided to create the company after enlisting it with the Registrar of the Joint Stock Companies and Firms (RJSCF), a senior ministry official told the FE.

He said the proposed new company will boost electricity generation from coal, which is abundant in northern Bangladesh.

Immediately after formation of the company it will be engaged to facilitate setting up four coal-fired power plants to generate 2,000 megawatts (mw) of electricity, each having generation capacity of 500 mw.

The power ministry has taken up the programme for installing four coal-fired

power plants under the new concept of the private public partnership (PPP) where the government will own only a fraction of its shares for offering land and infrastructure.

It will require around US$ 3.0 billion (Tk 210 billion) for setting up these coal plants.

When contacted Chairman of Bangladesh Power Development Board (BPDB) ASM Alamgir Kabir said the board is now working on the formation of the new company to augment electricity generation from the coal-fired power plants.

The company will be constituted with the efficient people where some BPDB officials will also get appointment, he said.

“The BPDB has already initiated the groundbreaking work and is now selecting sites for setting up the plants,” he said.

It has primarily selected – Karnaphuli river bank in Chittagong, near Mongla seaport in Khulna, Jazira on the bank of Padma and at Meghnaghat on the bank of Meghna – for setting up the plants for smooth transportation of coal.

Initially, the planned power plants will be run with the imported coal from the global markets, including the key exporting countries like Indonesia, Australia and India.

The existing infrastructure like drafting in waterways and expansion of railway tracks will be required for efficient coal transportation, said a power ministry official.

All the four proposed coal-fired power plants along with some independent power producer (IPP) projects will be put on offer during the road shows in three key important locations – New York, London and Singapore – in December next.

“The major task of the proposed company will be to arrange finance, necessary coal supply and develop required infrastructure,” said the power ministry official.

Despite having enormous coal reserves of around 3.0 billion tonnes in five different mines the country’s coal-fired power generation is limited to only one plant at Barapukuria having the generation capacity of 250 mw.

Even the Barapukuria plant is struggling to generate electricity to half of its installed capacity.

The country is waiting for adoption of a national coal policy to start coal extraction from the mineral-rich northern region.

The country’s overall electricity generation is now hovering around 3,800mw against the peak hour demand for over 5,500mw.

German investors talk energy with Hasina

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German investors talk energy with Hasina
Unb, Dhaka

A high-profile German business and investment delegation yesterday apprised Prime Minister Sheikh Hasina of their keen interest to invest in sectors such as gas exploration, coalmining and renewable energy.

Meeting with Hasina at her office, the eight-member delegation led by Peter Clasen, head of Bangladesh section of OAV, a network of German companies doing business in the Asia-Pacific countries, said they are interested in expanding trade and business in Bangladesh.

The Germans prefer Dhaka and Chittagong as their chosen places of investment, Prime Minister’s Press Secretary Abul Kalam Azad told reporters after the meeting.

The delegation also expressed their willingness to help Bangladesh in modernising its agriculture system by building modern technology-based farms and imparting training to the farmers on processing organic food items.

On renewable energy, the team said Germany as an expert country in this sector can help Bangladesh introduce solar energy and biogas systems on a massive scale.

Hasina expressed her happiness following the delegation’s interest in making investment in Bangladesh.

She said Germany can import ceramics, leather products and pharmaceuticals from Bangladesh.

In this context, the prime minister mentioned that Bangladesh has already started exporting ships to Germany, the Netherlands and Denmark-opening up a new vista for external trade.

Hasina observed that Bangladesh could not achieve its development at required level as its democracy could not run uninterruptedly in the past.

Bapex found 5 more highly potential areas onshore

http://www.newagebd.com/2009/oct/25/front.html#12

Bapex found 5 more highly potential areas onshore
Bangladesh Sangbad Sangstha . Dhaka

BAPEX, the country’s lone gas and oil exploration company, found five more highly prospective areas in onshore.

To add fresh reserve by 2010, Bapex is now set to start long awaiting exploration work in onshore areas of the country.

Analysing the data of 2D seismic survey of different part of the country, the state-run company has completed land acquisition, development work at Srikail, Kapasia and Sundalpur by December and set to start the work in Mobarakpur and Netrakona.

The Bapex has recently completed the survey in onshore areas.

Srikail, Sundalpur, Kapasia, Mobarakpur and Netrakona are the areas in our onshore, which showed huge prospects as per data, obviously Netrakona is a new name in the list, however, we are keen to explore these structure to add fresh reserve,’ Hossain Monsur, chairman of Petrobangla told BSS Saturday.

Aiming to increase gas reserve and supply, the Petrobangla has taken up ‘fast-track programme under which a massive exploration, augmentation and reservoir study work would be taken place in next two years.

A high official of Petrobangla said no exploration work has taken place in last ten years in the country, so the production of gas in the pipeline has failed to match the national demand. According to the National energy policy 1995, at least 36 exploration wells should have been drilled by December 2009.

By implementing some augmentation work in different gas field and wells, Petrobangla has successfully increased its production by 180 mmcfd (million cubic feet per day) in last six months. It is now producing 1,980 mmcf gas per day, which is 180 mmcf more from February last.

Petrobangla sources said although the production of gas had increased but it was still struggling to feed the required demand of the country’s industrial, power and commercial sector in proper manner as the present demand has raised 1,800 to 2,200 mmcf.

In the last hundred years of gas exploration history, only 76 exploration wells were drilled both in onshore and offshore Bangladesh.

‘Drilling some new exploration wells in these five structure we want to add more then one TCF gas into the country’s gas reserve,’ Monsur said.

BAPEX begins drilling at prospective Mobarakpur gas structure next year

http://www.thefinancialexpress-bd.com/2009/10/20/82080.html

BAPEX begins drilling at prospective Mobarakpur gas structure next year

FHM Humayan Kabir

The country’s petroleum exploration firm BAPEX would start drilling at prospective Mobarakpur gas structure in northern Bangladesh in the second quarter of next year to confirm gas reserve and viability of its extraction, officials said Monday.

The Bangladesh Petroleum Exploration and Production Company Ltd. (BAPEX) officials said they had already determined a point for drilling a well in a zone of Mobarakpur structure as the company was hopeful of a reserve of 200 billion cubic feet (bcf) of gas.

“We’ll drill an 4.50-kilometre depth exploratory well at the prospective structure in May. The drilling will confirm the actual reserve and its production viability,” Mosharraf Hossain, general manager of BAPEX, told the FE.

“The project needs some additional funds and time. We have recently placed the proposal before the Planning Commission for getting the extra time and fund for the drilling scheme,” he said.

BAPEX, a company under the Bangladesh’s energy corporation Petrobangla, will start drilling investing Tk 973.7 million through its new rig, to be imported from China, in the next year to determine the actual reserve at Mobarakpur in Pabna.

If the gas reserve is feasible, production from the first gas-store in the energy-hungry northern Bangladesh, will start from early 2011, Mr Hossain said.

The fund-starved BAPEX has already signed a deal last year with a Chinese company that would supply the exploration rig at a cost of nearly two billion taka.

The country’s lone petroleum exploration company has completed two-dimensional (2D) survey at 161 line kilometre areas in Mobarakpur last year investing nearly Tk 500 million.

From the survey, the state-owned energy firm has found some 200bcf of gas reserve in the first zone of the Mobarakpur field, which they said, is quite satisfactory, the BAPEX officials said.

The officials said there is another untouched zone at the gas field where they would go for exploration in the next phase after the successful upcoming drilling there.

The official said if there is a feasible hydrocarbon reserve for production it will be the first petroleum presence in the northern region where gas supply is very inadequate that holds back the industrial growth there.

At present the government supplies limited gas to some areas in Sirajganj, Pabna and Bogra districts out of the 16 northern districts.

Australian co to invest $400m in mineral sand mining

http://nation.ittefaq.com/issues/2009/10/19/news0081.htm

Australian co to invest $400m in mineral sand mining

UNB, Dhaka

An Australian company offered to invest 400 million US dollars in mineral sand mining in the Bay of Bengal off Cox’s Bazar coast, after ascertaining a good find through preliminary exploration.

The company’s willingness was conveyed to State Minister for Environment and Forest Dr Hasan Mahmud by Australian High Commissioner in Bangladesh Dr Justin Lee during a meeting at the ministry yesterday.

Earlier, in January 2007, the government had given permission to Premier Minerals, the Australian Company, for exploration of the sea sand laden with a number of minerals reportedly abound in the bay, apart from hydrocarbons.

“On completion of the first phase of exploration, the company expressed its eagerness to invest in the project for extracting the sea sand rich in mineral resources,” an official announcement said.

The sea sand at Cox’s Bazar beach contains heavy minerals, including Zircon, Rutile, Ilmenite, Leucoxene, and Magentite. The Australian firm plans to undertake the mining project under Teknaf upazila.

The minister said, “The government is eager to approve those projects which will bring economic prosperity for our country, but these must be environment-friendly.”

Alan Grant, Chairman of the Premier Minerals, who was present at the meeting, said that they are interested to make the investment in the mining project maintaining full “environmental balance”.

Dr Hasan Mahmud said more review is needed for looking into the project’s technical and environmental sides. “It must be ensured whether it is environment-friendly before giving final approval.”

The Australian mining-project proposal came when the government is negotiating deals with an American and an Irish firm for gas exploration in the Bay, amid outcries from a group of protestors at home and rival mining bids from neighbouring India and Myanmar.

BAPEX identifies three possible gas reserves in Ctg

http://www.thefinancialexpress-bd.com/2009/08/18/76469.html

BAPEX identifies three possible gas reserves in Ctg

CHITTAGONG, Aug 17 (BSS): Prospects of gas discovery at three places of the district has become bright as the drilling by BAPEX, the exploration agency of Petrobangla, is yielding highly positive results.

BAPEX General Manager MA Baki told the news agency of the prospect saying initial survey report showed presence of gas deposits at Budbudi Chara of Patiya, Joldi of Banshkhali and Fatikchhari.

He said the Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) carried out exploration drilling at these places and became confident of the reserves. The discovery outlook was positive, he said adding, they had informed Petrobangla about it.

They were now waiting for permission of Petrobangla to go into drilling gas wells and such other discovery activities, he said adding, Petrobanbgla as the apex body in the country’s energy sector, it held the key to such decision.

New discoveries might come as a breakthrough after a long gap since the discovery of Sangu gas field, another BAPEX official said. He said his organisation had started survey work at different locations of the district in recent past on its own in even absence of Petrobangla’s necessary directives in hand.

Referring to acute gas shortage and its adverse impact on socio-economic development, the BAPEX official said the country was waiting for new gas field discovery to bring relief to present sufferings.

Foreign consortium willing to invest $2.5b for oil refinery

http://www.thefinancialexpress-bd.com/2009/08/11/75787.html

Foreign consortium willing to invest $2.5b for oil refinery

A Z M Anas

A foreign consortium led by the Czech state-owned export bank is willing to invest US$ 2.5 billion in what will be the country’s largest crude oil refinery at Kutubdia island in view of the robust demand for petroleum products in the region.

The proposed oil refinery will be erected on 400 acres of land in southern Chittagong and have an annual capacity of refining six million tonnes of crude petroleum, officials and the group’s local sponsor said Sunday.

“We will be able to serve the entire Asian market, even challenging Singapore’s long dominance in the refined oil market,” Mahbubur Rahman, local honorary consular of the Czech Republic, told the Financial Express (FE).

The Board of Investment (BoI) said it has received the significant investment proposal and sent it to the Energy Division for its “no objection.”

“We’ll offer a 20 per cent stake to the government in lieu of the required land for the project,” Mr Rahman, who is also the local sponsor, said.

Senior BoI official Abu Reza Khan said the establishment of the refinery would hinge on the finalisation of the policy, now at its draft stage.

The majority foreign-owned oil refinery would far dwarf the state-run Eastern Refinery Ltd (ERL), the production of which has stagnated for more than four decades.

Currently, ERL can refine 1.2 million tonnes of crude a year, making up around 30 per cent of the country’s total demand.

Bangladesh Petroleum Corporation (BPC), which refines crude oil and markets petroleum products in the local market, procures the remaining mostly from the Gulf countries.

The foreign consortium group includes the state-run export banks of the United States, Germany, the Netherlands, France, Italy, the United Kingdom and the Czech Republic.

The foreign investment proposal comes at a time when at least two Bangladeshi business groups are pressing ahead with plans to establish oil refineries also in Chittagong.

“We will start construction work in six months after obtaining the government approval,” Mr Rahman said.

He said the group’s plan is to boost production by six times to 24 million tonnes in the next 10 years.

“Total capital infusion may reach $10 billion,” Mr Rahman said.

He noted that the Czech Republic, partnering with the Indian government and India’s corporate goliath Reliance Group, built an oil refinery in Gujrat state, investing as much as $6.0 billion.

He insisted that the mammoth project would not be hobbled by the capital crunch even as credit markets in the west remain tight under pressure from the global recession.

Mr Khan, of the investment board, said his agency would give its go-ahead for the multi-billion dollar project after Bangladesh approves the Private Oil Refinery Establishment Policy 2009.

Local conglomerate Bashundhara Group is planning to establish an oil refinery in Chittagong investing nearly US$ 700 million with an annual capacity of 2.5 million tonnes of crude oil.

The embattled business group’s proposed refinery would be built on 112 acres of land it acquired on the south bank of the river Karnaphuli.

East Coast Group, another business group, has also unveiled a plan to invest $110 million for a refinery in Chittagong to produce octane.

Huge mineral resources in North-Western region-Researchers

http://www.bssnews.net/newsDetails.php?cat=8&id=50602&date=2009-08-05&PHPSESSID=dcc547abcf4cbc70168ebe3517135468

Huge mineral resources in North-Western region-Researchers

ISLAMIC UNIVERSITY, Bangladesh, Kushtia, Aug 5 (BSS) – Two researchers here have disclosed that the North-Western region of Bangladesh possesses a huge amount of mineral resources including magnetic materials.

Professor Mahbubur Rahman of the Department of Applied Physics, Electronics and Communication Engineering (APECE) of Islamic University and Dr. Shaikh Enayet Ullah of the Department of Information and Communication Engineering of Rajshahi University made the disclosure at a seminar here recently.

Professor Mahbubur Rahman and Dr. Shaikh Enayet Ullah after jointly analyzing the geo-physical including geo-magnetic and geo-gravitational data for years reached a decision that the region contains valuable mineral resources under its soil.

Talking to BSS here today, Dr. Mahbubur Rahman said an article on the existence of mineral resources including iron in northern Bangladesh was published in the United States.

Both the researchers firmly believe that the government’s active supports in exploring these hidden resources under soil would sharply change the country’s economic scenario.

$110m local Naptha refinery to produce high octane

http://www.thefinancialexpress-bd.com/2009/07/27/74460.html

$110m local Naptha refinery to produce high octane

Jasim Uddin Haroon

A local company Sunday said it is setting up a refinery by investing US$ 110 million in Chittagong, which will use locally available raw material Naptha to produce high octane.

After implementation of the project by 2011, it will meet the country’s total demand for high octane and save foreign currency worth more than Tk 350 billion per annum. The country’s annual demand for the high octane is approximately 100,000 tonnes.

“We have already finished land development works recently at Patenga in Chittagong and we expect to go into operation sometime in 2011,” Azam J Chowdhury, a leading entrepreneur and chairman of East Coast Group told the FE Sunday.

The fuel refinery company, which got the government’s approval three years back, has been named Mobil Jamuna Fuels Ltd (MJFL).

Apart from East Coast Group, Jamuna Oil Company will hold a 25 per cent stake of the MJFL while IFC, a subsidiary of the World

Bank and the DG of Germany and the FMO of the Netherlands will also hold equities of the project.

The fuel plant will use Naptha, a by product of the state-owned Eastern Refinery Limited (ERL) and produce high octane or octane 95.

The ERL, the country’s lone oil refinery generally exports its by-product of around 100,000 tonnes of Naptha a year, as there is no scope for refining it within the country.

“We approached the government with the offer to pay more than the price reporting agency Platts quotes per barrel

and the government agreed to our proposal,” Azam, who is also managing director of the fuel refinery plant-MJFL- told the FE.

Mr Azam, holding a large stake of MJFL, said he is implementing the project with the technical assistance of the UOP LLC, a US based company, and it will be able to produce up to 150,000 tonnes a year initially with an option for future expansion.

“It has huge export market, I will export the surplus,” Azam added.

Asif Malik, chief operating officer of the MJFL told the FE: “We will also produce liquefied petroleum gas (LPG) from the plant by using the same raw material.”

The plant however will require 1.0 megawatt power plant.

Mr Azam said it will also set up a 5.0 megawatt power plant by using left over of the plant adding: “It will meet our power need and the extra power will be added to the national grid.”

The country’s annual demand for the fuel is around 3.8 million tonnes including 1.2 million tonnes of crude oil.

Eastern Refinery to triple capacity

http://www.newagebd.com/2009/jul/22/busi.html#9

Eastern Refinery to triple capacity
Reuters/Bdnews24.com

State-run Bangladesh Eastern Refinery Limited will raise its capacity by three times to reduce import cost and its reliance on foreign countries for petroleum products, a senior official said told the news agency on Monday.

At a cost of more than $1 billion, the refinery’s capacity will be raised to 4.5 million tonnes a year from 1.5 million tonnes, the official said.

‘We find the plan viable after completion of a study done by Pakistan-based consultancy firm Enar Tech Service limited,’ said Rezaul Alam, the managing director of the ERL, the country’s lone oil refinery located in Chittagong.

‘Almost the entire demand we will meet from our own capacity, which will save cost and time,’ he said.

Bangladesh imports up to 3.8 million tonnes of oil including 1.2 million tonnes of crude oil to meet up yearly demand.

The expansion programme will be done in two phases beginning from this year and take three years to complete, the official said.

Jeddah-based Islamic Development Bank will bear the cost of the first phase. In the second phases, money will come from the Asian Development Bank and other countries.

Bangladesh imports oil mainly from Saudi Arabia, Kuwait, United Arab Emirates, India and Malaysia at a cost of between $2.5 and $3 billion.

BPC to set up deep sea fuel unloading facility

http://www.thefinancialexpress-bd.com/2009/07/07/72285.html

BPC to set up deep sea fuel unloading facility

M Azizur Rahman

The government has decided to create a deep-sea petroleum unloading facility near Kutubdia, some 60 kilometers off the coast.

The facility, officials said, would help reduce both unloading time and costs substantially for the imported fuel oils and boost efficiency of the state-owned oil companies, officials said Monday.

An under-the-sea pipeline would also be installed to carry the fuels to the coast, said a senior energy ministry official.

Installation of this platform named – single buoy mooring -would facilitate carrying of fuel to the shore through the pipeline, leading to a reduction of transportation time to only three days from the existing 16 days, he said.

Some US$140 million would be required to install the platform and the pipeline, the official said.

The facility, according to an estimate, would help the Bangladesh Petroleum Corporation (BPC) save around $10 per tonne of fuel, he added.

The country currently requires around 3.70 million tonnes of crude and refined petroleum products annually to meet its soaring domestic demand.

The state-owned refinery – the Eastern Refinery Ltd (ERL) – can refine around 1.5 million tonnes of fuel a year.

Both refined and crude oil could be carried to the shore from the proposed platform, once it is installed, the BPC official said.

“The mother vessels carrying the imported fuel oils would be able to unload at the platform through the pipeline,” said BPC Chairman Anwarul Karim.

Piped fuel oils would then be stored in the coastal depots or carried to the refinery from where it would be supplied across the country, he said.

Currently rental lighter vessels carry petroleum to the shore from the mother vessels staying at the outer anchorage.

“We have to pay $5.40 per tonne to the lighter vessels for carrying petroleum to the shore,” the BPC chairman said.

The petroleum corporation carries its fuel through the lighter vessels owned by the state-owned Bangladesh Shipping Corporation (BSC).

The BPC has recently carried out a feasibility study and found that setting up of the platform in deep sea would be economically viable.

“We have sought financial assistance from the Islamic Development Bank (IDB) through the Economic Relations Division for setting up the platform,” said the BPC official.

The IDB has hinted at providing such assistance, he added.

Experts also backed the government plan for setting up the petroleum unloading facility in the deep-sea.

“This platform might help reduction of transportation loss and pilferage of the petroleum products,” said Professor M Tamim of Bangladesh University of Engineering and Technology (BUET).

US firms keen to invest in coal sector

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US firms keen to invest in coal sector
Unb, Dhaka

American companies are keen to invest in Bangladesh’s coal sector, State Minister for Power and Energy Shamsul Haque Tuku said yesterday.

He was talking to reporters following a meeting with US Ambassador James F Moriarty at the energy ministry.

He said the US envoy apprised him that American energy companies are interested to help Bangladesh in developing energy sector. They particularly want to invest in coal mining after finalisation of the coal policy by the government.

Following the meeting, the envoy said that the minister discussed many issues regarding the energy sector’s development in Bangladesh and also the assistance for the victims of very recent cyclonic storm ‘Aila’ that hit the country’s southwest coastal belt.

Moriarty noted that the United States would provide necessary assistance for the victims if Bangladesh side seek any help.

A number of US companies, including oil major Chevron, have been operating in the country’s energy and power sector. But this is the first time it was learned that US energy companies are also interested in the coal mines.

Bangladesh has about five coal mines in the country’s northern region, having a total coal deposit of 2.5 billion tons.

A draft coal policy is now being reviewed by the government.