M2K TECHNOLOGY & TRADING CO., BANGLADESH.

M2K TECHNOLOGY & TRADING CO. PTE LTD., SINGAPORE.

BANGLADESH: Amin Court Building (2nd floor), 62-63 Motijheel Commercial Area, Dhaka -1000, Bangladesh. Tel :+880-2-5716-0955 Fax : +880-2-5716-0966 E-mail : [email protected] SINGAPORE:

Block 428, Clementi Avenue 3 # 10-430, Singapore-120428. Tel:+65-8299-8715 E-mail: [email protected] Website: www.m2kttc.com

WE REPRESENT: Phenix Technologies Inc., USA.

Phenix Systems AG, Switzerland. www.phenixtech.com & www.phenixsystems.com

Doble Engineering Company., USA. www.doble.com

Vanguard Instruments Company Inc., USA.

www.vanguard-instruments.com

Manta Test Systems Inc., USA.

www.mantatest.com

Morgan Schaffer, Canada.

www.morganschaffer.com

Globecore GmbH, Germany.

www.globecore.de

Larsen & Toubro Limited, India. www.lntebg.com

Powerchina Nuclear Engineering Company Limited, P.R. China. www.powerchina-ne.com

Editor Mollah M Amzad Hossain Fortnightly Magazine, Vol 18, Issue 20, April 1-15 Advisory Editor Anwarul Islam Tarek Mortuza Ahmad Faruque Saiful Amin International Editor Dr. Nafis Ahmed Contributing Editors Saleque Sufi Online Editor GSM Shamsuzzoha (Nasim) Managing Editor Afroza Hossain Policymakers, industry leaders and energy experts came together at a recent Deputy Editor virtual seminar to discuss possible ways of saving energy consumption in Syed Mansur Hashim industries. They stressed on the need for installation of energy-efficient Reporters Arunima Hossain machinery and equipment, and to finance these, greater integration among Assistant Online Editor banks, other financial institutions and industry is also required as Industrialists Aditya Hossain face unnecessary delays in securing loans. Manager A & A Md. Ariful Islam RMG and textile, which consumes 28% of total primary energy is a prime area Design & Graphics for saving energy. Sector leaders believe there is a need for coordinated effort by Md. Monirul Islam all factories to become efficient. The energy-efficient companies should be Photography rewarded with a cut in corporate tax and an award should be introduced for Bulbul Ahmed smaller factories so that they become interested to go green. Production Mufazzal Hossain Joy Energy experts believe that we are in the dark about energy audit baseline data. Computer Graphics Bangladesh Bank takes up green financing projects, yet no information is Md. Uzzal Hossain readily available on how many projects have received funding, how funds have Circulation Assistant Khokan Chandra Das been used, the results, which projects have not been monitored. Strengthening Editorial, News & Commercial energy audit of industry and inducting more skilled energy auditors are the need Room 509, Eastern Trade Center of the hour. 56 Inner Circular Road (VIP Road) Naya Paltan. GPO Box : 677 GIZ Bangladesh contributed the photos used in the Cover & Cover Inner Dhaka-1000, Bangladesh Tel & Fax : 88-02-58314532 Email: [email protected] [email protected] Website: www.ep-bd.com Price Bangladesh: Tk 50, SAARC: US$ 6, Asia: US$ 8, Europe: US$ 10, North America, Africa & Australia: US$ 14

23 9 45 Experts suggested expediting The textile and RMG sector is using Use of electric induction stoves exploration of hydrocarbon in the might reduce cooking cost nearly 30% of the electricity used in significantly in near future. onshore and offshore areas to industries. If energy-efficient Around 20% of the population is avert a possible crisis of primary machinery are installed, electricity using LPG for cooking energy in the country. They also usage can be reduced to 17.6%. For purpose and they have to pay recommended mining even the this to happen, concerned parties high price. If electricity price discovered coal resources to meet need to be incentivized. The becomes cheaper, induction the growing demand for energy in authorities will have to set standards cooker would be better option the economy. Not even a single for machinery while necessary than LPG cylinder. It might country is developed without coal. financing should be ensured at low reduce the growth rate of LPG cost. demand… BPC Chairman tells EP ...More in Special Report Encouraged by the readers and patrons, the EP would continue bringing out Green Pages to contribute to the country’s efforts in its journey towards environment-friendly energy. Contents

37 Factories Urged to Set Rooftop Solar Panels

38 Two More Wind Power Plants on Cards

39 German Solar Developer Faces Demonstration in Bangladesh

39 Govt to Discourage Sub­standard Equipment for RE

Contents

5 WORLD WATCH 31 WEBINAR Latest Development in Bangladesh’s Geological World Setup Rich in Atomic Minerals

6 SNAPSHOT 33 REPORT Latest Development Ongoing Projects to Ensure Uninterrupted Power Supply: 9 COVER Nasrul Big Hurdles To Cut Industrial 34 Gas Supply Disruption Consumption in Dhaka

15 SPECIAL ARTICLE 35 VAT on LPG Down to 7pc Time for Revisiting Kitchen 35 Saudi Aramco 2020 Profits Fuel Options in Bangladesh Slump

19 ARTICLE 41 CLIMATE Gas System Management Energy, Climate Leaders to Turns Critical Boost Clean Energy Momentum 23 SPECIAL REPORT Bangabandhu’s Energy 42 SDG Success to Depend on Vision Hardly Followed Localized Execution 27 ARTICLE 43 COLUMN Unparallel Achievements Indo­Bangla Connectivity is Should Not Make Us Key to Region’s Prosperity Complacent

29 SDGs 45 INTERVIEW SDG 3: Issues of Major Death Md Abu Bakr Siddique Climate vulnerability, Covid Chairman, Bangladesh and implementation of SDG Petroleum Corporation Worldwatch

Natural Gas Has Vital Role in Siemens Under Pressure Again Energy Transition: IEF Sec Gen Over Australia Mega Coal Mine The role of natural gas as an enabler in the en- Siemens faces renewed pressure from protesters in Australia ergy transition while un- demanding the German engineering company quit a mega derpinning economic mining project that has breached environmental protection activity will be an im- rules. portant theme in the in- Adani Enterprises has broken rules on four occasions and has ternational energy been handed two fines totaling 25,920 Australian dollars discussion in the years ($20,000) since contracting Siemens to work on its ahead, the President of Carmichael coal and rail project, a group called SumOfUs the International Gas Union (IGU), Joe M. Kang, said recently. said. Speaking at the 50th edition of the GECF Gas Lecture Series, en- Adani's Australian unit has described the breaches as minor titled ‘A Clean, Secure, and Affordable Energy Future Requires and said it has addressed them. Electricity, Gas, and Infrastructure’, Kang, who holds a Ph.D. in Petroleum Engineering and who has led the 90-year-old IGU for The Queensland mine - which will extract 10 million tons of Korea’s 2018-2021 triennium presidency, argued that only by coal per year - has provoked controversy in Australia at a time marshalling a collective effort that the world can guarantee a when the coal industry is under scrutiny for its high levels of prosperous and secure future. greenhouse gas emissions linked to global warming. “The (climate change) debate in recent years has been intense SumOfUs called on Siemens to cancel its contract with Adani and loud, but the world has not come far in aligning on an ap- and more than 121,000 people have signed a petition de- proach that enables us to meet the enormous challenges of de- manding Siemens CEO Roland Busch take action. carbonisation, energy access and energy security. SumOfUs is a non-profit consumer group registered in the “It will require a clarity of purpose and approach that has been United States which runs online campaigns aimed at curbing lacking to date, but we have to settle on an approach that delivers the power of companies. clean, secure and affordable energy,” said Kang. Protests took place at Siemens's shareholder meeting in The economic and environmental value of natural gas in a sus- 2020, and tainable energy future against the backdrop of a groundswell of Busch's predeces- anxiety about climate change was also touched upon the GECF sor Joe Kaeser last Secretary General Yury Sentyurin. year said Siemens could quit the HSBC to Phase Out Coal Funding contract if "our customer violates on Shareholder Pressure the very stringent HSBC bank recently unveiled plans to phase out financing of environmental the coal industry over the next two decades, bowing to share- obligations". holder pressure to do more to tackle global warming. "HSBC today announces it will propose a special resolution on Shell Experiences Historic climate change," the lender said in a statement. "The resolution will set out the next phase of HSBC's strategy to sup- Net Loss in 2020 port its customers on the transition to net zero carbon emissions." The Royal Dutch Shell plc, more popularly known sim- The plan, which will see HSBC reduce its exposure to fossil ply as Shell, is one of the largest companies in the fuels, will be put to a vote at its upcoming annual general meet- world. ing on May 28. Activist group ShareAction claimed victory after HSBC's board However, due to the crippling effects of the COVID-19 tabled a resolution that commits the company to phase out fi- pandemic, demand for oil fell sharply reducing its price nancing of coal-fired power and thermal coal mining by 2030 to historic lows. in the EU and OECD, and by 2040 elsewhere. As a result, Shell had one of its worst years in history, ShareAction and other investors have now withdrawn their sep- having to cut its dividend for its shareholders for the arate move. first time since World War II. According to data pre- "HSBC's resolution will be the sole resolution on climate change sented by TradingPlatforms.com, Shell posted a $21.5B at this year's AGM," the bank added. net loss in 2020, with revenue dropping by over 47%.

April 1, 2021 5 Snapshot Exploration Activities of GSB to PM Postpones Payra PP’s be Enhanced: Nasrul Opening Schedule

State Minister for Power, Prime Minister Sheikh Hasina has postponed the schedule of ’ Energy and Mineral Re- the opening of country s largest mega coal-fired Power Plant sources Nasrul Hamid re- having capacity to generate 660MW electricity on March 31, cently said that the 2021, a top official said. research and exploration The decision came up from prime minister’s office recently. activities of Geological As part of the Prime Minister’s scheduled opening of the Survey of Bangladesh power plant, Power Division secretary Md Habibur Rahman (GSB) will have to be and top officials of the power division visited Payra power strengthened with mod- hub on Tuesday. “PMO has postponed the upcoming inau- ern technology for ensuring energy security of the country. guration program in March 31, 2021,” said an official at Bangladesh-China Power Plant. He said while speaking as the chief guest at function here on virtually. Nasrul Hamid said the government will provide nec- Now, the unit-1 of the Payra Power Plant supplies 600MW essary support quickly the initiative for establishing modern electricity in grid. lab and training center. During the trip of Power Secretary, information about plant’s tur- bine panel, boiler management, power transmission and control GSB organized the reception program for heroic freedom ’ systems, rehabilitation center and Bangladesh-China Technical fighters and posthumous reception for freedom fighters family Institute activities are briefed by top officials of the plant. on the occasion of Golden Jubilee and birth centenary of Fa- ther of the Nation Bangabandhu Sheikh Mujibur Rahman on its campus. IBBL Signs MoU With Titas Gas Among others, Geological Survey of Bangladesh Director Islami Bank General Dr Sher Ali spoke on the function. Bangladesh Ltd (IBBL) signed a Mem- orandum of Under- Petrozavodskmash Manufactured standing (MoU) with Titas Gas Transmis- a Set of Equipment for RNPP sion and Distribution Company Limited, Petrozavodsk Branch of JSC AEM-technology manufactured says a press release. a set of twelve high-pressure gate valves for turbine island of units 1&2 of Rooppur Nuclear Power Plant (RNPP). Under this agreement, Titas clients will be able to pay their gas bills through all Branches, Sub-Branches and iBanking of IBBL. The valves with flow area from 80 to 125 mm are made of stainless steel with enhanced corrosion resistance and are in- In presence of Mohammed Monirul Moula, Managing Direc- tended for operation under heavy load — pressure up to 11 tor and CEO of IBBL, and Ali Iqbal Md. Nurullah, Managing MPa and temperature up to 300°С. Director and CEO of Titas, Md. Mosharraf Hossain, Deputy Managing Director of IBBL and Md. Eaqub Khan, Company The main function of these pipeline valves is to shutoff the Secretary of Titas signed the agreement on behalf of respective operating medium flow tightly in order to ensure reliable op- organizations. eration of drainage and oil supply systems of nuclear station turbine plant. BB Allows Empty LPG Cylinder

The gate valves passed the entire set of factory tests including Import on Deferred Payment pneumatic, hydraulic and leak tests. During the tests the Bangladesh Bank (BB) has allowed the import of empty LPG equipment had been held under pressure of 18.4 MPa for 10 cylinder under the deferred payment option. minutes. Customer’s representatives conducted an acceptance inspection of the equipment. The Foreign Exchange policy department of BB recently is- sued a circular in this regard and sent a letter to all authorized These items are a serial product for the Petrozavodsk mash dealer banks. manufactured following in-house design documentation. The The circular stated that to support the energy sector, BB de- valve closure member has a shape of a wedge and moves per- cided to allow a deferred payment period of up to 360 days pendicular to the axis of operating medium flow under the for the import of empty LPG cylinder by industrial units for action of a drive. their own use.

April 1, 2021 6

Snapshot Jet Fuel Price Goes Up Again Asif A Chowdhury Elected

Bangladesh Petroleum Corporation (BPC) has increased jet President of JBCCI fuel price by Tk 5 per liter recently. Chowdhury Group CEO The increased price of jet fuel will come into effect from and Managing Director March 10. Asif A Chowdhury has According to Padma Oil Padma Oil Company Limited, a sub- been elected president of sidiary of Bangladesh Petroleum Corporation (BPC), the deci- Japan Chamber of Com- sion was taken to adjust the price of jet fuel with the merce and Industry (JBCCI) international fuel price. for the year 2020-2022. "Fuel price at the international market has seen upward trend Md Shariful Alam, M over the last few Jalalul Hai were elected months. We have Vice Presidents, while adjusted our price Takeshi Hashimoto has in line with the in- been elected Treasurer. ternational market and the Kolkata Tareq Rafi Bhuiyan (Jun) has been re-elected Secretary market," a senior General for the term 2020-2022, said a press release. official at the BPC The newly elected directors are Yuji Ando, Tadaoki Watan- said. abe, Takashi Miyata, Tetsuro Kano, Nurul Wahab, Syed The BPC top Samiul Huq and Dr. Kabir Ahmed. bosses sit together every month to ra- The election was held on 22nd February 2021, while the tionalize the jet fuel price and adjust it every month regularly. new Board of Directors took over charge on Sunday. This is the fourth time in the last four months since December Asif A Chowdhury heads several segments of CHOWD- last year that Padma Oil Company Limited, a subsidiary of the HURY GROUP, a renowned local conglomerate diversify- BPC, has increased jet fuel prices. ing from Shipping or Logistics services, Stock Brokering, Plastic products manufacturing, Zipper or Fastener manu- SOSCL Appoints New MD facturing, Hotels and Resorts etc. Bangladesh’s first private fuel oil importer, trader Titas Gas Official Jailed in and supplier - Summit Oil & Shipping Co Ltd Graft Case (SOSCL) has appointed Rear Admiral Riazuddin A Dhaka court recently sentenced an official of Titas Gas Ahmed (Retd) as its new Transmission and Distribution Company Limited to six-year Managing Director from imprisonment in a graft case filed by Anti-Corruption Com- 1st March 2021. mission (ACC). Rear Admiral Riazuddin Judge Sheikh Hafizur Rahman of Dhaka Special Judge Court- Ahmed is also the Advisor 9 passed the order, convicting and sentencing Abdul Motaled to Summit Group of Com- to four-year rigorous imprisonment and fined him Taka 27.82 panies as well as the Inde- lakh under section 27 (1) of the ACC Act and two-year simple pendent Director of Summit Alliance Port Ltd (SAPL). imprisonment and fined him Taka 50 thousand under 27 (2) of the act. On his appointment Muhammed Aziz Khan, Chairman of Summit Group of Companies remarked, “Rear Admiral Ri- The court in its order said both the sentences would run con- azuddin Ahmed (Retd) is a man of integrity, hard work, intel- currently, meaning the convict has to suffer four-year impris- ligence and wisdom. We are happy to have him lead Summit’s onment in total. energy and port businesses. He would be able to spearhead According to the case documents, the ACC filed the case ’ Summit s expected expansion in both the energy and port against Motaleb on November 3, 2016, for concealing infor- businesses in Bangladesh.” mation about wealth of Taka 27.84 lakh and amassing illegal Meanwhile, the former Managing Director of SOSCL M wealth of Taka 39.12 lakh. The anti-graft body on October 8, Hafizur Rahman has been appointed as the Advisor to SOSCL. 2017, filed the formal charge in the case.

April 1, 2021 8 Cover

EP Report

he textile and readymade garment (RMG) sector is using nearly 30% of the Telectricity used in the industrial sector. If energy-efficient machinery are installed in the sector, electricity usage can be reduced to 17.6%. For this to happen, concerned par- ties need to be incentivized. The authorities concerned will have to set standards for ma- chinery while necessary financing for the en- ergy-efficient equipment and machinery should be ensured at low cost and through removing the bureaucratic bottlenecks.

April 1, 2021 9

Sector insiders and experts pointed out SCAN THE QR CODE revolution to actually take effect, all fac- the major bottlenecks in achieving en- TO WATCH FULL TALKS tories need to become efficient. We ergy efficiency in industries and recom- need to say we will try. In the last mended possible solutions at a virtual budget we had asked for TOFK. It will seminar on “Energy Efficiency Opportu- be done. SREDA can adopt SPV model nities in RMG & Textile Industry” on 27 to make a special company. Let those March 2021. Energy & Power magazine companies that become energy efficient with the support of SREDA & GIZ organ- pay 5% corporate tax instead of 10%. ized the seminar titled “EP Talks”, mod- Instead of simply responding to buyers’ erated by EP Editor Mollah Amzad demands, an award should be intro- Hossain. duced for smaller factories to go green. Taking part in the discussion, Prime SREDA Chairman Mohammad Alauddin Minister’s Energy Advisor Dr. Tawfiq E. opined that the government’s interest in Elahi Chowdhury (Bir Bikram) said that ries are in the process of getting LEED- energy efficiency is reinforced by the it’s necessary to listen to what industri- certification. Seven out of 10 green fac- very existence of SREDA. We have en- alists need. Pragmatic solutions are tories in the world are located in ergy audited 12 institutions. It is true that needed by talking to them to understand Bangladesh. The sector in Bangladesh often there are no public documents. what are the problems they face. How we can increase the number of energy auditors. Similarly, we need to increase the number of those who will give cer- tifications after auditing. There is a need for greater integration among banks, other financial institutions and industry. There are instances when industrialists suffer delays in securing finance and this employs 4.1 million people. Naturally, We will publish a book on our findings. discourages them because the desired we will make some mistakes. But if all We are committed to reducing carbon amount is not large but the hassles are. we get is negative, it is disheartening. emission in NDC and there is no alter- Hence it is necessary to simplify the Auditing doesn’t sound nice, monitoring native to efficiency in such matters. We rules for their easy access to funds. is a better term. can highlight these as business cases and it will be done. The Advisor said that Shopno Nagar’s zero ’ waste system can be emulated by the gar- No initiative can be successful if it isn t Dr. Nurul Islam (former Professor of ments sector. You can go and see Shopno a coordinated effort. Our slogan for ro- BUET), said that the case studies can be Nagar physically. There, human waste is bust industry is an old one. Frankly compiled and delivered to relevant par- being transformed ties. Bangladesh into biogas. This will Bank takes up proj- benefit industries in ects that fall under different ways. green financing. It’s necessary to high- BGMEA President light how many Dr. Rubana Huq parties have re- stated that the gov- ceived such fund- ernment incentive ing, what has it is required for every been used for, what good initiative. In- were the results, centive doesn’t which projects mean financial sup- have not been port only but also Tawfiq E. Elahi Chowdhury Rubana Huq Mohammad Alauddin monitored. encouragement from policymakers. Bangladesh has 133 speaking this initiative should have Dr. Md. Zahurul Haq, Professor, Dept. of ‘Green’ factories and about 500 facto- been taken some time ago. For a green Mechanical Engineering, BUET, shared

April 1, 2021 11 that the country has achieved much, but more could be done. To achieve energy efficiency goals, we are still talking about the low-hanging fruits. If the payback pe- riods are between 3 months to 5 years for a lot of energy saving devices, and then the investment should be spontaneous. Now it is the time for the pilot projects to demonstrate how investments are made to save energy and how the profits are being generated. He further stated that in the first certifi- Farzana Mamtaz Shafiqul Alam Zahurul Haq cation test for 'Energy Auditors' were conducted using Energy Efficiency & Conservation Roadmap, however only one out of 150+ candidates was suc- cessful. We need a number of quality auditors to ensure the identification and quantification of the saving potentials. To have successful auditors, the poten- tial candidates must be properly trained to achieve calculation/estimation skills and these procedures are not generally covered in engineering curriculum. He also mentioned that we want to finance Asif Ibrahim Nazmul Haque Al Mudabbir Bin Anam green products. So, we have to first de- cide our baseline data for more incentive. are given to that effect, then it will bear fruit. There are talks about co-genera- machineries/process, and if some prod- BGMEA Director Asif Ibrahim said that tion, recycling and net-metering where there is a scope to work more closely. A committee has been formed in this re- gard which is a very good initiative. The committee is trying to work if it gets rec- ommendations. Red tape culture in green financing must be reduced. I think the goal is a good one and everyone needs to believe in energy saving as the resources are not unlimited. Mr. Asif Ibrahim, who is also the Chair- man of Chittagong Stock Exchange, sug- gested an integrated approach that combines renewable energy, energy ef- ficiency and conservation to effect effi- ciency of the sector. IDCOL’s Chief Financial Officer Naz- mul Haque stated that IDCOL has started in 2016 with only USD 100 mil- View of a RMG factory lion fund and by now the loan portfolio stands around USD 500 million. We’ve uct/company is more green, then that we can go for rooftop solar as the roofs allocated USD 150 million for the RMG product/company should be awarded of all the factories are huge. If incentives

April 1, 2021 12 sector to be provided through the banks. The biggest limitation to financing the RMG sector was energy auditing, but now we’ll provide the support so that the factories could avail the low cost loan facility. We have achieved our 5- year lending target in only 2 years. We are encouraging all to take advantage of this facility. Al Mudabbir Bin Anam, Program Co- ordinator (REEEP II) GIZ, stressed the need for including energy manage- ment programs and benchmarking in the industries to reduce demand. The industries should also explore alterna- tive sources of energy as the gas supply would decline in the future. He said that three things are needed to make industry efficient. These are: sustain- Enegy efficient machinery installation work Photo @ GIZ Bangladesh able energy supply, market and re- source-based competitiveness, and, with it. If we save energy, then usage need of the hour, so that low grade energy management for energy effi- will decrease. For this reason, a master lights can be phased out of the market. plan has been formulated. It is envis- ciency and conservation. But there is We have formed working groups for aged that in FY2020-21, savings will a great knowledge barrier and shortage three industrial sectors which are con- be 15% and by 2030, it will increase of skilled manpower in the industries ducting training so that the industries to 20%. We are providing low-cost fi- as it is not their main line of business. can perform technical and economical nancing for certain machinery. To get He stressed the need for addressing the evaluation. Audits conducted in the access to SREDA financing for machin- issues immediately. three industries suggested that there is ery, these have to be SREDA-certified. Presenting the keynote paper, SREDA a scope to save 1.9 MMCM gas at DBL Member (EE&C) Ms. Farzana Mamtaz Ms. Mamtaz said that SREDA is work- while 88,110 kwh of electricity can be said that of all the electricity produced, ing. But it is not getting the required in- saved by replacing the fans — energy 48% goes to industry, residences con- formation from relevant parties. There efficient fans can help Mohammadi sume 31% and transport takes 11%. In is limitation in testing facility availabil- Group alone to save 34,608 kwh elec- the industrial sector, textile and gar- ity. Also, there is dearth of certified en- tricity. The group prepared an action ments sector consumes 30% electric- ergy auditors. plan and wants to implement it. The payback period would be 2.6-7.4 ity. If we can ensure efficiency, then GIZ’s Senior Advisor (REEEP II) this figure will come down to 17.6%. years, subject to taking all the meas- Shafiqul Alam stated that the RMG ures needed. This sector holds the potential to save sector is consuming 28% of primary 41.5% if efficiency measures are energy resources. If energy efficiency In conclusion, the experts recom- adopted. measures are effectively deployed, mended to properly identify and Adoption of energy efficient machin- then it will play a positive role in the assess the needs of the industries ery is not just reducing costs. Rather it supply chain. This whole process is and to take measures commensu- is improving the internal environment time consuming and company-focused rate with the needs so that they awareness building is very much in a factory and increasing the quality could go for energy-efficient ma- needed. Continuous monitoring is very of products. Awareness campaign is chinery and equipment easily. It important, lack of which result in needed. SREDA is taking initiative in will not only help clean the envi- this regard. many projects failing. This is why we have conducted many training pro- ronment, but would also reduce Energy demand is increasing day by grams and still are doing so. Standard- the cost of products and maximize day, but production isn’t keeping pace izing quality of LED light bulbs is the profits, they added. EP

April 1, 2021 13

Special Article

Time for Revisiting Kitchen Fuel Options in Bangladesh

Mohammad Mosharraf Hossain

recent news item in a local news- try domestic consumers was the main ficiency). Bio mass is the most readily paper, serious concerns have target for the gas pipeline expansion or available source of fuel for kitchens in Abeen expressed about the state of addition. The gas sector always took up the country. This is the main source for natural gas network in Bangladesh. projects for gas supply to major users the 60% of the population in the coun- There have been several serious acci- like power, fertilizer, industrial and com- try. Notwithstanding the laborious dents related to the household gas sup- mercial for serving any new areas with process of gathering the biomass from ply and many valuable lives have been the natural gas network. The domestic the sources to the burners, and the dis- lost in the gas explosion or fire resulting customers were considered as a wind- eases associated with burning of these from gas leakage. According to the fall gain for the gas companies. In this fuels, it is the mainstay fuels for kitchens news, Titas gas has about 28.66 lakh way, the gas pipeline networks spread in Bangladesh. This inefficient tradi- (2.866 million) customers with the dis- across the country and the domestic gas tional stove produces smoke composed tribution line measuring 13,138km and customers increased exponentially with of a large number of particulate matters during the period of 2018-2019, more the increase of GDP and per capita in- and carbon monoxides through incom- than 5,000 leakages were reported with come. But time has now come to revisit plete combustion of biomass fuels, thus 208 fire accidents having taken place. the issue of viability of continuing with creating indoor air pollution (IAP). IAP Titas has, however, chalked out a project the domestic customers in the gas sys- resulting from the smoke is linked with for replacing 892km of old pipe lines. It tem of the country. many diseases such as acute and is, no doubt, a very dismal picture and chronic respiratory conditions, lung The issue of taking up BMR project for the future seems to be bleak for expec- cancer, heart disease, stroke, and tation of safe natural gas supply to do- gas pipelines is closely linked with the fu- ture of indigenous gas availability. If the cataract. According to World Health Or- mestic consumers. The important issue country is about to face the unpleasant ganization, more than 100,000 people is, however, not to examine the gas leak- reality of exhaustion of local gas sources, die every year in Bangladesh due to var- age itself but a more complicated sce- the import of LNG would be the next op- ious diseases caused by IAP, which is nario that is likely to emerge as a result tion. However, the LNG cost would be also responsible for degradation of the of fast depleting supply of natural gas in exorbitantly high for domestic consump- natural environment and deforestation. the country. The news item reflected the tion. So long the local gas would be The IAP and deforestation can be con- need for immediate replacements of the available the LNG import could be justi- trolled by using Improved Cooking leaked pipelines, but to make the pro- fied with the gross average price by mix- Stoves (ICS), according to Infrastructure gram of balancing, modernization and ing high-priced LNG with cheaper local Development Company Ltd (IDCOL), replacements (BMR) of thousands of gas. But that could be for a limited period which has been promoting distribution kilometers of gas pipelines underground only and that could also justify only for of such stoves in Bangladesh designed a success would be a nightmare. This is the gas to be used in electricity genera- by the Bangladesh University of Engi- more disturbing against the backdrop of tion. Sole dependency on LNG for the neering and Technology (BUET) and the exhausting natural gas sources energy needs of the country, even for tested by the Centre for Rural Technol- within the country when gas supply to power generation, would be economi- ogy, the University of Dhaka. IDCOL the other major economic sectors would cally non-viable and under such sce- opined that it is convenient for the cook- be threatened with short supply or may nario, the natural gas supply to kitchens ing process and creates a smokeless en- even with ultimate stoppage. could be labelled as a dead issue. vironment in the kitchen. The energy In the past, criticisms have been ushered Only about 10 percent of the over 30 efficiency of burning biomass fuel in ICS in against supplying natural gas as the million households in Bangladesh have is between 20 and 35 percent, far better kitchen fuel in Bangladesh. But in retro- access to natural gas for clean cooking than that of traditional stoves. IDCOL spect it would reveal that natural gas solutions, leaving the majority of the has plans to help develop a sustainable was promoted as a fuel for domestic population to depend on traditional bio- market for adoption of improved cook- purposes at the prevailing period due to mass fuels such as wood, dung, and ing stoves in Bangladesh after it success- its nature as easy, cheap and convenient agricultural residues for cooking in low- fully installed one million burners two source of energy. Nowhere in the coun- efficiency stoves (5 to 15 percent fuel ef- years ahead of schedule.

April 1, 2021 15 The use of clean fuel such as ing LNG re-gasifier at Chit- liquid petroleum gas (LPG) is tagong. During the peak pan- globally recommended for demic of COVID-19, the LNG household cooking to reduce price was lowest but then it exposure to household air started going up soon. The es- pollution and its adverse timated cost of LNG is about 4 health consequences. Adop- times higher than that of the tion of LPG in resource-poor local natural gas. So, imported settings such as South Asia is LNG when mixed with local low and driven by many fac- LNG may bring down the cost tors. In Bangladesh, more than of fuel at the burner tips, but 90% of the rural population with the depletion of gas fields relies on biomass fuels for the situation will be horren- cooking. Nearly all users had dous. The power sector with multiple cookstoves, and 85% basket of fuels for the power reported using LPG as an al- No gas for cooking due to supply disruption stations may somehow man- ternative fuel to their main cooking and Titas gas has conducted a base line survey age to adjust to the generation cost, but fuel (traditional cooking with biomass in its distribution areas and found that domestic LNG will be out of question to fuels). LPG is not readily available in the 35,000 gas risers out of 5.65 lakh consti- be affordable for the consumers. country. The only refinery in Chittagong tuting about 6.2% were leaky. Some offi- and the gas processing plant at cials of the company, on condition of Use of Solar energy in cooking food stuff Kailashtilla in Sylhet produce some LPG; anonymity, said the situation of leakage in has not gained momentum in while bulk of LPG are imported and dis- gas pipelines is more severe. Due to poor Bangladesh. However, it has probably a tributed in Cylinders. The infrastructure quality of equipment and unplanned un- niche market in the country, as the derground installations, pipelines have for LPG distribution is not very mature neighboring India is progressing well huge leakages, they said. The company and being import-oriented item, the price with the solar cooking projects. Elimi- of LPG varies widely. Consumers are does not have exact data on leakage in nating solid fuel cooking is a growing mostly not satisfied with the LPG supply gas distribution lines. Titas Gas distribu- priority for India aiming to avoid ad- in Bangladesh. City and Suburban areas tion lines have become a death trap for verse health impacts from indoor air not covered with piped natural gas are city dwellers due to leakages. A recent ac- pollution. The focus has been on the use predominantly users of LPG. cident in Narayanganj that killed 28 peo- ple panicked the people more. According of liquefied petroleum gas (LPG), but a Kerosene is the next choice of the people to the fire department, around 30% of fire recent survey of households in Uttar who live a bit away from the cultivable accidents in the capital are happening Pradesh, India showed that majority of land and in the so-called modernized due to gas pipeline leaks. consumers found LPG too expensive for areas with electricity and possibly water their cooking. Prime Minister Modi said, Most of the pipelines in the gas distribu- supply. They use kerosene stove for “While the world is working towards cooking purposes. Kerosene is not pro- tion system are old and having been laid electric cars, in India, in addition to duced locally except small quantity re- in the era when cathodic protection sys- electric cars, electric stoves would go a fined in the Chittagong refinery and tem of pipelines was not seriously ad- long way in meeting the needs of the while processing NGL at Sylhet; some- hered to as are being done now. As a result, the major length of laid pipelines people. This innovation would, in one times finished kerosene is also imported. ’ is at the risk of having outlived its life and stroke, significantly impact the nation s Piped natural gas is available in most of for the sake of safe and leakproof gas sup- dependence on imported fuel.” IIT, the eastern districts of the country and a ply, new pipelines have to be laid. This Bombay has since conducted a project few districts in the western part of the process will take huge amount of invest- to convert the entire village of Bancha country. In April 2009, the government ment that would be added to the gas sup- in Madhya Pradesh to solar panels and stopped giving fresh gas connections to ply cost if piped natural gas line is induction cookstoves instead of wood- domestic units. This prohibition was allowed to be still on the agenda of en- burning or LPG stoves. With Rs 8.5 mil- lifted for a year in 2013. The following ergy supply to the domestic customers. lion provided by ONGC, all the 75 year, the energy division again stopped houses in Bancha now rely on solar- giving new domestic connections. De- As the gas fields are depleting fast due to powered electric stoves to meet their spite a long pause in giving new house- ever-increasing need for supply of natural cooking needs. Besides reducing air hold connections, the number of such gas to power generation , there is every pollution, villagers no longer have to connections has been increasing gradu- possibility that the gas from the indige- ally due to illegal connections. In 2014- nous sources will be exhausted soon. collect firewood from nearby forests, 15, the number of domestic consumers The alternative is to depend on imported saving time and effort. According to was 1,897,317. However, at the end of LNG and Bangladesh has already started ONGC, a sponsor of the project, the 2018-19, it rose to 2,846,419. such import for power sector with float- main barrier is the high upfront cost and

April 1, 2021 16 the lifetime of available batteries to pro- cost of electricity (compared with wood, cumbersome. Under these circum- vide the storage of around 3 kWh re- coal, or city gas), limited power avail- stances, electricity could be the best op- quired to cook both evening and able from the electrical supply company, tion for cooking purposes. In India, pilot morning meals in a typical household. poor temperature regulation, and short projects at the government’s initiative for Other possible barriers include cultural life of heating elements. In the past days, introducing electricity to the rural areas preferences for flame-cooked food, electric stoves had resistive heating coils have already proved to be encouraging which both LPG and biomass offer, as which heated iron hotplates, on top of and also advancements in solar energy well as the need for special cookware in which the pots were placed. Eventually, have opened a new vision about using the case of induction stoves. composite heating elements were intro- storage battery in the kitchens in the se- duced, with the resistive wires encased lected parts of India. These success sto- Experience in other countries also indi- in hollow metal tubes packed with mag- ries in the neighboring country could be cates that resistance is surmountable nesite. These tubes, arranged in a spiral, replicated in our country as well. support the cookware directly. The in- through consumer education and aware- As Bangladesh can boast of a very success- vention of nichrome alloy for resistance ness to dispel myths and misperceptions. ful electrification program, it will be very wires improved the cost and durability One program in Ecuador, Plan Frontera, productive if kitchens can now be con- of heating element. In the 1970s, glass- to replace LPG with induction cooking verted to electricity friendly in the urban, ceramic cooktops started to appear. in 5,400 households showed initial suc- semi urban or even remote rural areas. Glass-ceramic has very low thermal cess, with only 1 per cent unsatisfied This will eliminate costly import of LPG, conductivity and a near-zero coefficient with electric stoves, while 60 per cent LNG and Kerosene for cooking purposes of thermal expansion, but allows in- were “completely satisfied”, citing ease and do away with costly transportation frared radiation pass very well. Electrical of use and the speed of cooking food. and distribution system for these products heating coils or halogen lamps are used Usage of induction cookstoves with PV within the country thus making the kitchen as heating elements. Because of its phys- modules and batteries can provide the electricity cost competitive with alternative ical characteristics, the cooktop heats required power to cook all types of sub- fuels. As electricity is already available to more quickly, less afterheat remains, and continental cuisines, both vegetarian the majority of the population, adding a only the plate heats up while the adja- and non-vegetarian, on 24x7. Other in- new category of use like energy in the cent surface remains cool. These cook- novations involving solar cooking are kitchen will add to the supply- demand of tops have a smooth surface and are thus also emerging. For example, a solution power generation and distribution which easier to clean. A third technology is the that stores heat from solar PV electricity could be worked out by the electrical induction stove, which also has a is being piloted in Gujarat. This cook companies. At the same time, investment smooth glass-ceramic surface. Only fer- stove is cheaper than LPG and can store needed for catering the demand of Kitchen romagnetic cookware works with induc- energy for three days using a thermal so- customers and tariff to be fixed for kitchen tion stoves, which heat by dint of lution instead of batteries. electricity consumption on the basis of electromagnetic induction. Typical elec- long run marginal cost need to be formu- Electricity could be the best input for the tricity consumption of one heating ele- lated by the concerned agencies. cooking needs in the context of ment depending on size is 1—3 kW. Bangladesh. An electric stove or electric Under the prevailing conditions, electric- range is a stove with an integrated elec- On close examination of the issues re- ity appears to be the least cost option for trical heating device to cook and bake. lated to the fuels for the kitchens in Bangladesh, especially in view of the im- Electric stoves became popular in the Bangladesh, it would be clear that de- pending exhaustion of gas fields in the western world as replacements for solid- pendency on natural gas has to be country. Considering uncertainties in get- fuel (wood or coal) stoves which re- ceased sooner or later. The rural areas ting new gas field at least for the time quired more labor to operate and where bio mass is the dominant fuel are being, it may not be appropriate to invest maintain. Some modern stoves come in now switching over to improved version in the BMR of the natural gas infrastruc- a unit with built-in hoods. The stove's of burners or Chulas so that efficiencies tures; instead on confirmation of the fea- one or more "burners" (heating elements) are improved and less pollutant materi- sibility of reforms in the energy supply may be controlled by a rotary switch als are exhausted from the chulas. With system for the domestic customers, nec- with a finite number of positions (which the improvement in economic condi- essary marginal investments could be may be marked out by numbers such as tions and standard of living in rural made in the electricity distribution sys- 1 to 10, or by settings such as Low, Bangladesh, these modes of cooking will tem to reach power to the kitchens in the Medium and High), each of which en- give way to other modes of fuel for the country. A few technical and policy level gages a different combination of resist- kitchen like LPG or electricity, if no in- decisions would, however, be needed for ances and hence a different heating digenous gas fields are discovered in the early implantation of Kitchen Electrifica- power that allows constant variability country. LPG will involve import from tion Schemes. EP between minimum and maximum heat abroad at the cost of huge foreign ex- settings. Some stove burners and con- change; besides, developing the delivery Mohammad Mosharraf Hossain; trols incorporate thermostats. Early elec- system of LPG cylinders to the con- is a former Chairman of Petrobangla tric stoves were unsatisfactory due to the sumers` doorstep would be costly and and BERC

April 1, 2021 17

Article

Gas System Management Turns Critical

Saleque Sufi

he natural gas-dominated energy have been made due to top-down gas contract with a controversial company sector of Bangladesh is heading system management. The compressor NIKO. Two back to back blow outs hap- Ttowards irreversible uncertainty. station at Elenga in Tangail is hibernat- pened at Chattak and Tengratilla. The The proven gas reserve of discovered ing; the compressor stations at Ashuganj contract entered arbitration. The gov- gas fields is depleting fast. There has never got its desired feed gas at intake. ernment adopted BAPEX-alone policy been far less than bare minimum gas ex- Some pipelines like AB1, AB2, for onshore exploration. Unfortunately, ploration since 2020. The BAPEX-only Bibiyana- Dhanua, Bonpara—Ishwardi- BAPEX neither grew technical expertise onshore exploration strategy did not Khustia—Jessore—Khulna are running nor had own fund to carry on explo- work well. The capacity-constrained well below their respective designed ca- ration at expected rate. Neither its man- BAPEX has so far managed to discover pacities. Few are not being used even. agement had any executive authority for few marginal gas fields. Most of these, Experts consider that IMED or BERC operating as an exploration company in however, have either watered out or should conduct study on the GTCL in- matters of procurement of drilling tools nearing the end of production life. The frastructure to examine the extent of its and accessories. Russian company wellhead pressure of most wells, even utilization. GAZPROM was given contract for the major gas fields like Bibiyana and drilling development wells in Titas, are fast depleting. If several well- According to the present state of pro- Petrobangla’s gas fields. Observers com- head compressors are not set up, many duction scenario, the gas supply could plained about very poor works executed wells would have retired in two to three be continued only with major discovery by GAZPROM-engaged drilling con- years. Water drive wells may suddenly of new fields or import of additional tractor. An over ambitious 108 wells start depleting at higher rates. LNG. As told earlier, this may not hap- drilling program was given to BAPEX. As pen in the next 3-5 years. So, the gas expected, BAPEX failed to execute the In such a situation, the gas fields are supply security is in jeopardy. project. The success of resolving mar- now producing 2357.30 MMCFD itime boundary dispute with Myanmar against a capacity of 2760 MMCFD, ac- Why such situation arises? Following and India brought no fruits due to cording to Petrobangla’s Day Produc- the discovery of Bibiyana field in late Petrobangla failures in engaging IOCs tion Report on 17-18 March 2021. The 1990s by UNOCAL, they started press- through PSCs in deep water exploration. RPGCL supplied 851MMCFD equiva- ing the government for allowing them to Neither could BAPEX and Petrobangla lent RLNG to the national gas grid on export gas to India through pipeline. find any joint venture partner to further the days. The present reality evidences The then government did not allow it. explore identified gas structures in that within the next 3-4 years, there is The civil society agitated against it. A greater Chattogram and Chattogram Hill no possibility to increase gas supply section of civil society considering a Tracts. All these contributed to alarming from own fields. Rather the production market signal even suggested to approve gas crisis as for managing demand may drastically deplete. There is no pos- it. However, in a state of dilemma and growth about 13 Tcf gas got used up in sibility for any additional LNG import debate, a new government took over of- 21 years from 2000. Against this, new before 2025. Perhaps Petrobangla and fice and under popular pressure could addition is only about 2 Tcf. EMRD has no contingency plan. A huge not let UNOCAL export gas. In the amount of investment has been made meantime, UNOCAL reassigned PSC to Petrobangla has finalized an updated over the past 12 years in gas transmis- Chevron. However, considering the de- PSC, but a vested quarter interfering at sion infrastructure of GTCL without en- cision as disincentive, IOCs lost interest the higher level frustrated the suring increase in gas production. Some in investing in Bangladesh. Neither did Petrobangla efforts for engaging con- parts of the infrastructure have already Petrobangla make sincere efforts in ex- tractors for multi-client surveys in deep turned to become white elephant. pediting exploration in onshore and off- water. Experts, however, observed that Experts observe that some investments shore. The government signed dubious Petrobangla could use extensive data

April 1, 2021 19 the IOCs left behind during exploration from 1974-77 and also at different times since then. Now with the outbreak of coronavirus, it is uncertain when Petrobangla can go for PSC bidding. Even if it happens in 2021, there is no possibility of any gas coming from deep water before 2030. LNG Import The LNG import initiative since 2010 - 2014 suffered from poor vision, lack of far sight and contradictory decisions. If planned properly, the first RLNG should have been injected to gas grid by 2014. After wasting year after year, the first FSRU came into operation in 2018 and the second in 2019. In the meantime, GTCL successfully constructed two pipelines from Moheshkhali to Anowara on the upstream and Anowara — Fauj- darhat — Feni — Bakhrabad on the down stream. RPGCL can deliver 1000MCFD and GTCL has the capacity for evacuat- ing 1,200 MMCFD. But RPGCL is hand- icapped with restrictions of PPR in availing low price LNG purchase from the spot market. There are limits of pur- chase through two long term contacts as well. The vested quarter misguiding the government wasted time and energy with too many FSRUs and even unreal- disputed the decision as three compres- to its designed capacity. istic small FSRUs at CUFL and KAFCO sor station construction (Muchai, GTCL under assurance of Petrobangla of jetty. There have been long delays for Ashuganj and Elenga) of GTCL under required gas supply extended gas trans- land-based terminal at Matarabari. In ADB loan was at the final stage. The mission network from Bonpara — Ra- this situation, there is no possibility of government in a controversial manner jshahi and Bonpara — Khulna. But for any additional RLNG injection in gas took out Muchai compressor station last several years, very few customers grid before 2025. construction from GTCL and let have been supplied gas from these ex- Gas Transmission Scenario Chevron build it under cost recovery pensive gas pipelines on excuse of gas Huge unplanned investment in gas provision of PSC. Experts alleged that supply deficits. Under instruction of transmission infrastructure has created a Chevron as an operator of gas fields higher authority, GTCL also constructed possibility of economic meltdown of cannot construct any facility beyond its Ashuganj-Bakhrabad gas transmission GTCL. Without assured supply of gas, battery limit (downstream flange of cus- loop line although Ashuganj-Bakhrabad GTCL upon dictation of Petrobangla tody transfer metering station). A media pipeline built in 1997 never achieved and EMRD has made huge investment report of alleged scam over such con- capacity transmission. A very novice de- in gas transmission Infrastructure — gas troversial decision appeared in the sign of pig receiver station of the grid has been extended all the way from media. The construction of Bibiyana- pipeline few kilometers upstream of the Bonpara—Ishwardi-Bheramara— Dhanua pipeline and construction of terminal point has created operational Khustia—Jashore—Khulna. But apart from compressor station at Ashuganj and hazard as dirt and spoils carried with the supplying power plants in Bheramara, Elenga were accomplished by GTCL al- gas deposits in this leg from time to gas has not been supplied so far to any most at the same time. Chevron in- time. Another pipeline from Dhanua — consumer in 5 years. On false assurance creased production and started Savar was also built to increase gas sup- of possible discovery of substantially depleting from Bibiyana faster. Conse- ply in the region for meeting additional large gas structure at Sunetra, a 98-Kilo- quently, the reality now is that Elenga gas requirements for CNG under Dhaka meter long 42 inches expensive compressor station remains almost idle Clean Fuel Projects. Bibiyana-Dhanua gas transmission and GTCL compressor station never got pipeline has been constructed. Experts its desired feed to operate anyway near GTCL also constructed Bakhrabad—Sid-

April 1, 2021 20 dhirganj pipeline for meeting the expo- cal resource can not operate the procurement of materials expedi- nential growth of gas demand in the compressor stations. Meanwhile, tiously under Speedy Power and En- Meghnaghat, Siddhirganj areas. Possibly the investment made by Chevron for ergy act. There have been the pipe used for this line was substan- construction and operation of allegations of substandard construc- dard. Allegations of corrosive metallic Muchai station may also been trans- tion of some pipeline and poor products are being reported in this sec- ferred to GTCL. This compressor quality materials. tion of GTCL transmission line. station was built at a time when GTCL had almost finalized award of Conclusion Most of the above pipelines and fa- contract to its contractor. Chevron GTCL should reassess its gas trans- cilities of GTCL have now become built it at much higher than GTCL mission assets and approach BERC white elephants as the gas usage negotiated price with its contractor. for required compensation for in- projected during DPP has not been vestment recovery through adjust- achieved and possibly would never Major gas facilities of GTCL are ing wheeling charge. It must be achieved. now in Maheshkhlai and Anowara acquire capacity of operating its area. Operation division requires a RLNG Evacuation compressor stations and fully oper- major office in greater Chittagong The GTCL however successfully ational SCADA facility. At the mo- and sub zonal offices at Khulna and constructed two large pipelines ment it only acquires data but perhaps at Bogura when gas supply from Moheshkhali — Anowara, con- cannot control. After reviewing the to Rangpur is materialized. GTCL structed large city gate stations at system, decision must be taken on SCADA system also needs to be Anowara and Faujdarhat and a large how the compressor station lying fully operational. pipeline from Faujdarhat — idle at Elenga can be better used. Bakhrabad via Feni for evacuating Gas System Management is in a Chevron should be asked to carry RLNG from two FSRUs set up at Ma- Mess out additional investigation on its heshkhali offshore. This infrastruc- Rapid depletion of gas production assigned blocks 12, 13 and 14 for ture was however necessary and from the gas fields has already cre- new gas resource. SGFL must also GTCL must be credited for accom- ated concern about possible huge carry out investigation at Surma plishing these facilities on time de- gas deficit which is apprehended to Basin for new resources. There must spite a very challenging start emerging by the end of 2021. be new exploration at Sunetra circumstances. However, a dispute There is no possibility of additional through spotting drilling locations if with the supplier has created an im- gas discovery to boost gas supply in required through further seismic pediment for the operation of a me- less than 3-5 years from onshore survey. GTCL operation directorate tering station at Anowara for and 8-10 years from offshore. There must be further staffed. If necessary, metering gas supply to BGDCL-op- is also no chance of additional LNG four sub-zones must be created. erated ring main from Anowara import in less than 5 years. But Operation and system management CGS. GTCL would require building there is a possibility that local gas should be segregated. Now senior additional facilities for evacuation production may deplete to 1,500 officers, GM and above, are reluc- of RLNG that would be imported MMCFD or below. We are not sure tant to stay outside Dhaka. But the using land based LNG terminal sta- whether Petrobangla and EMRD system has been extended from Mo- tion under planning at Matarbari. have worked out possible remedy to heshkhali to Khulna and from confront the possible crisis in 2024 Beanibazar to Bogura. In near fu- Financial Stress on GTCL and beyond. In such a situation, the ture, it will be extended to Payera Some of the huge infrastructure that GTCL is extending the gas grid to in Patuakhali. If necessary, GTCL the GTCL has constructed since Ranpur and constructing another should enter into a joint venture 2010 are essential while some are pipeline from Bakhrabad towards with reputed international transmis- unnecessary and poorly conceived. Naryanganj and Padma Multipur- sion company for operating the sys- It has created huge financial stress pose bridge. tem. Alternately, some activities can on the GTCL. The operational activ- be out-sourced. Petrobangla must ities of GTCL have been affected. Construction and keeping ready gas immediately let out PSC for engag- The company spent huge amount of transmission infrastructure for pos- ing IOCs for exploration in the on- money for imparting training to sible evacuation of additional gas shore frontier and deeper prospects large number of officials in different on time is smart decision. But mak- of discovered fields. The gas fields countries, but could not acquire ca- ing huge investment on the down- at Shahbajpur must be linked with pacities for operating the compres- stream with any possibility of gas grid as soon as possible. sor stations. The EPCM contract additional gas supply is a poor de- with the contractor required exten- cision. Perhaps business mafia syn- EP sion. The genuine questions are dicates got benefitted as huge Saleque Sufi; being asked now why GTCL techni- money has gone down the drain for Contributing Editor

April 1, 2021 21

Special Report Bangabandhu’s Energy Vision Hardly Followed

EP Report

xperts at a recent virtual conference SCAN THE QR CODE fuel and said the country should have have suggested expediting explo- TO WATCH FULL TALKS taken right initiatives for increasing gas Eration of hydrocarbon in the on- production as there cannot be anything shore and offshore areas to avert a better than own fuel. We must also use possible crisis of primary energy in the energy efficiently. He also pointed out country. They also recommended min- that there are criticisms about special ing even the discovered coal resources power act of the government. But it was to meet the growing demand for energy necessary to face the special situation. in the economy. There are also criticisms about quick rental power plants. People talk about “We’re engaged in unnecessary debate purchasing power at high price. They are over mining our own coal. Some un- also critical about the subsidy that it qualified debates are there about envi- would create adverse impact on the ronmental impacts,” Bangladesh Power economy. But see what we achieved? Development Board (BPDB) Chairman of mining own coal is gradually closing. Where was the country in 2010 and Engr. Belayet Hossain told the meeting. So, this is the best time to exploit our where it is now? Looking at the indices, He argued that the developed discovered coal reserve. The time we cannot say Bangabandhu’s daughter economies grew by utilizing their coal would come when the country would made wrong decision. Within a short resources. One cannot name even a sin- gle developed country which did not use coal for energy generation. There is also a notion in our country that the gas- fired power generation is more eco- nomic. But this is due to cheaper than economic price of our own gas. The gas-based power cannot be cheaper perod of time, we could increase power than coal if we talk about using im- not be able to mine its own coal even if generation to a reliable state. Now we are ported LNG. it wants to do that. making fresh plans and the quick rentals Energy & Power magazine in collabora- Engr. Belayet mentioned that what we are being taken out. Rentals would also tion with M2K Technology and Trading are thinking now, Bangabandhu had en- be eventually phased out. I do not think organized the discussion on “Banga- visioned that 50 years back. The mining that the IPPs are harming at all. bandhu’s Energy Vision” on 20 March of coal from Barapukuria in Northern Rashed Mahmud, CEO of Dipon Gas, 2021. EP Editor Mollah Amzad Hossain Bangladesh is also the outcrop of his vi- said Bangladesh must follow the foot- moderated the discussion as part of a se- sion. print that Bangabandhu had left behind ries titled “EP Talks”. He stressed the need for diversification of for offshore exploration of petroleum. Taking part in the discussion, experts We should not exclusively rely on for- and professionals endorsed the thoughts eign company and expats. We have to of Engr. Belayet that also go with the patronize local companies and create philosophy of Bangabandhu, who had more local experts. We have to exploit emphasized on utilization of domestic all our resources. Unfortunately, we resources. “We are progressively mov- could not reach where Bangabadhu ing towards imported primary fuel. This wanted us to go. We could not live up is exactly the opposite to Banga- to his vision. bandhu’s energy philosophy,” the meet- Rashed observed that the global financ- ing was told. ing for coal exploration is progressively However, the experts expressed con- getting squeezed. The donor agencies cern over the shrinking scope of financ- are also turning their back. Even China ing coal projects and said the window Nuruddin Mahmud Kamal is now discouraging the coal power

April 1, 2021 23 generation. If we do not mine own coal now, it may remain buried underground forever. It may not be possible in future even if we want to mine it. It is the best time to mine our coal. Maqbul-E-Elahi Chowdhury, Member (Gas) at Bangladesh Energy Regulatory Commission (BERC), reminded that in the war-ravaged country, Bangabandhu had rightly envisioned that agriculture alone cannot bring sustainable eco- nomic development of Bangladesh. He Bashirul Huq Maqbul­E­Elahi Chowdhury Badrul Imam also thought that agriculture alone can- not implement his lifelong vision to make the country “Sonar Bangla”. His thought was rapid industrialization. He also rightly thought about secured sup- ply of gas and oil. His thought was cre- ating sustainable energy security. Bangabandhu had directed Shell BV to increase gas production from their gas fields. But Shell replied that they did not have enough end users that could justify their already incurred investments on gas infrastructures. On that considera- Belayet Hossain Rashed Mahmud Khondkar Abdus Saleque tion, they were not finding any logic for veloping country would encounter huge inal price. Our prospects may be un- additional investment. Bangabandhu challenge if Bangladesh require invest- locked in 5-10 years. IOCs now think gave them options that either you come ing lion’s share of foreign exchange for about gas market while investing in with proposal to develop additional in- meeting costs of imported primary fuel. other countries. But Bangladesh now frastructure within 15 days or bring a has huge hungry gas market. They He requested those to leave gas sector proposal to sale all your assets. Shell would not require to bother about mar- who believe and spread their conviction thought war-damaged Bangladesh ket. would not be able to justify the required that Bangladesh is running out of gas re- investments for expansion. They came source. He said Bangladesh would not Mr. Maqbul mentioned that problem back with proposals for selling the as- require investing a single penny. We lies in that, Bangladesh now takes 3 sets. Bangabandhu agreed to pay the must go all out for oil and gas explo- months in getting decisions while value in 9 installments over 18 years. ration if possible from tomorrow. Other- Bangabandhu could make it in only 3 This is in brief how Bangladesh became wise, Bangladesh may stumble on half days. the way he apprehended. the owner of 5 discovered major gas Nuruddin Mahmud Kamal, former ’ fields within 4 years of the country s in- He mentioned about a hiccup about en- Chairman of BPDB, said institutions did dependence. These were all leased out vironmental impacts for coal resource not grow during the short tenure of to them under concession. Banga- exploitation. Companies do not honor Bangabandhu. At that time, there were bandhu introduced Production Sharing their pledges. Australia creates a fund. no scope for reviewing and scrutinizing Contracts (PSC). He could conclude The proceeds of that fund is utilized for like now in taking decisions. There was contracts with 6 major International Oil restoration of land when a company a paucity of qualified trained human re- Companies for exploration of oil in the abandons a mine after exploitation. In sources. In that situation, there was not Bay of Bengal in only 9 months. PSC is the offshore resources exploration, the enough qualified persons for planning considered ideal contract for dealing abandonment fund is utilized for explor- in traditional manners before launching with petroleum exploration and devel- ing the left over resources. execution. Bangabandhu could start ex- opment worldwide. ecution of many epoch making works in We must let our available data for ac- the energy, power and mining sectors. He said that the manner in which we cess of interested companies. Similar in- are leaning towards import of primary centives applicable for offshore A.S.M. Bashirul Huq, Energy Consult- fuel, we may require to spend $25-30 exploration should be included in PSC ant, International Energy Expert, said billion for paying energy import bills in for deeper prospects exploration and that Bangabandhu’s vision was supply- 2030. Transforming Bangladesh to a de- Western Zones. Offer these data at nom- ing power and energy to all citizens at

April 1, 2021 24 You have to motivate them. The major drawback in Bangladesh is that no one wants to listen. No one wants to know about addressing the challenges. We tried to impose min- ing and did not try to persuade the community. We must reach meeting of minds through stakeholders’ en- gagement. We witness major devel- opment in power generation. But we are not realizing the impacts that is increasing the dependence on imported fuel. Engr Khondkar Abdus Saleque, Con- tributing Editor of Energy & Power, con- necting from Melbourne, Australia paid glowing tribute to Bangabandhu for his energy philosophy and vision. He men- tioned that the essence of energy philos- ophy of Bangabandhu is an integral part of the economic vision and that was self-sustaining energy sector. He also said Bangabandhu’s philosophy was telling the naked truth with forti- tude. But Bangladesh has drifted away from there. Otherwise, knowing the steep challenges of growing into an im- ported fuel dependent economy, we would not have neglected exploring and exploiting own primary fuel. He Bangabandhu Sheikh Mujibur Rahman suggested exploiting buried rich coal re- affordable cost. But now, for many rea- tenure. These were later converted into source by applying off the shelf state-of- sons, we have arrived at a situation exploration blocks. But we could not the-art modern technology and expedite when we have to import primary fuel. find ideal conditions for exploration exploration of oil and gas at onshore There is no other option now. In after his sudden demise. People who and offshore. Bangladesh ports, it takes about 10 days believe in Bangabandhu’s Energy Vision for unloading an oil tanker of 1 lakh and ideology must come forward and Recommendation tonnes capacity. Countries like Singa- contribute now. The speakers recommended fuel di- pore unloads a ship of 2.5 lakhs tonnes versification for power and energy in 24 hours only. SPM is a good initia- He said that the world is moving out of generation while coal could be the tive. The state-owned oil companies are coal. Mining coal will become more preferred option. This is the most now working as agents. They could cumbersome in the future. There are sci- ideal time for exploring and exploit- have done a lot of works in the past, but entific explanations of managing all im- ing own coal. If we continue hesi- did very little. It is sad that only a little pacts. Bangladesh is a densely tating, there may be a time when over 100 exploration wells have been populated country having fertile land. we may not be able to extract it drilled in 100 years in Bangladesh. Technologies are there to address land even if we desperately need that. Many countries do that in one year. restorations. If we have to motivate so- All the perceived and conceived cially, we have to do that with social sci- challenges of mining coal can be Energy expert Dr. Badrul Imam said that entists, not technical resources. addressed and mitigated with tech- if we could follow the commendable nology. Social economists can do works that Bangladesh initiated within a Underground mining method extracts the works of motivations. Massive short period of 1-2 years, we could be only marginal resources. We can extract exploration campaign for oil and in much secured position as far as en- most of the coal through open pit min- gas must be launched at onshore ergy supply is concerned. He could ing. We have to adopt appropriate tech- and offshore simultaneously with- bring the entire Bay of Bengal under ex- nology and address social impacts. You out further delay. ploration activity within his very short have to go to the mining community. EP

April 1, 2021 25

Article

Unparallel Achievements Should Not Make Us Complacent

Serajul Islam Quadir

ow lucky we are for the 170 mil- From an exporter of raw jute, rawhide efforts have turned into a world’s lead- lion people of Bangladesh as we and tea in the ‘70s, Bangladesh is now ing industry over the decades, com- Hcould celebrate the Golden Ju- a major exporter of manufacturing pelling successive governments to bilee of the Independence of this coun- goods. In apparels, it is second only to continue with supportive policies. try! China. In remittance earning, our work- Still there are a number of rules and reg- force all around the world have scored In our early teenage we had been expe- ulations linked with the government well even during the covid-19 pan- riencing a horror killing on the soil of policies that need to be updated and demic. They sent money home to feed this country and now we are fortunate amended like policies related with cus- their families, which added to foreign to have a National Flag of our own, we toms and revenue, to make them busi- currency reserves. have our own National Anthem , we ness-friendly. Besides, the bureaucracy can speak in our mother tongue loudly Children are going to schools, with girls that is popularly known as ‘red-tapeism’ to say the global audience that we are outperforming boys in public exams. also needs a serious change in behav- boosted by Sheikh Mujibur Rahman, the Bangladesh is outdoing its peers in the ior. Father of the nation who have been region in some social indicators. In eco- The practice of red-tapeism should not rated as the greatest person of this na- nomic development, Bangladesh is on be required and not at all desirable for tion for all time. His charismatic leader- track of graduating from the group of a country that has achieved freedom ship amazed the whole world. LDC, where it has been placed since with a spirit and ideology of Banga- 1975. But this is not all! bandhu Sheikh Mujibur Rahman whose When tens of thousands of youths were These are our achievements as a nation. mantra was against all excessive paper fighting the War of Independence, leav- These are definitely big gains we must works and tedious procedures before of- ing their families exposed to brutal at- be proud of but we cannot afford to be ficial action. tacks, murders, rape and torture by complacent; because it took us half a Red tape is an idiom referring to regula- Pakistani occupation army, and millions century since our independence to tions or conformity to formal rules or others were in Indian refugee camps in reach here. Even in Asia, there are standards which are claimed to be exces- tears, suffering hunger and disease, countries which performed much better sive, rigid or redundant or to bureau- Bangladesh had an embarrassing fight at than us during the first few decades of cracy claimed to hinder or prevent action the global forum for recognition. Big their independence. Whatever or decision making. Why this practice powers were divided at the UN, and few Bangladesh achieved so far, those have will exist in our “Shonar Bangla”, a members stood for the newborn nation, been low-hanging fruits of growth that dream of the Father of the nation. understanding the price of blood it paid. came on the back of individual efforts of the enterprising population. We must swear on this Great day that Bangladesh, with its red-and-green flag we will eradicate this red-tapism from ’ flashing in the world map, came into Country s noted development econo- our soil for ever to make the country ’ being. But suspicion remained, with mists believe that the people s inspira- people oriented and to remake the gov- some economists expressing their fear tional spirit has its root in our War of ernment as a pro-people government. about how long this country would be Independence, which changed the psy- …The information and communication able to survive! che of a nation from fatalistic to inspira- technology - ICT sector’s entrepreneurs tional. Some supportive policies were Bangladesh not only survived, but has are enjoying policy support and incen- there from the government, but it is the now emerged as a development won- tives for two decades or more from the people who made it happen. der. Famine is an issue of the past as governments across the political divide, the country is near self-sufficient in In fact, in our country, policies in most though the sector has a long way to go rice. Progress in egg, meat, milk, fish, cases followed people’s efforts. In other and a lot more to ask for. and vegetable and fruit production is words, when individual efforts of people EP also remarkable. Fast-growing econ- started giving yields, the government Serajul Islam Quadir; omy, emerging economy, Asian tiger then came up with some policy support. The writer is the former Bureau Chief of are few of the titles or adjectives at- Readymade garments industry can be Reuters in Bangladesh and Executive Ed- tached to Bangladesh. cited as an example of how individual itor of the American Chambers’ Journal.

April 1, 2021 27

SDGs

SDG 3: Issues of Major Death Climate vulnerability, Covid and implementation of SDG

Series 11

Two targets relating to HIV/AIDS in cant progress. In 2017 it was estimated In Bangladesh, in 2019 dengue took MDG 6 are to have halted and begun that 219 million cases were there with about 164 lives, which was 176 in to reverse the spread by 2015 and to 435 thousand deaths. If you take the 2018, reduced from 650 in 2014. Kala- ensure access to treatment among all case of tuberculosis, it is a disease of azar, lymphatic filariasis and dengue those in need by 2010. In 2015 there poverty, economic distress, vulnerabil- among all these 3 are prominent water were 2.1 million (1.8-2.4 million) new ity, marginalization and stigma. In borne diseases in Bangladesh. Mos- HIV infection worldwide adding up to 2019 it was estimated that 10.4 million quito, flies these are the carriers and a total of 36.7 million (34-39.8 million) new TB cases were identified corre- the cause are lack of basic clean water, people living with HIV/AIDA and half sponding to 142 cases per hundred sanitation and hygiene. Bangladesh is of them about 17 million were under thousand population and death is 1.2 expected to validate lymphatic filaria- antiretroviral treatment. From 2000 to million. These are among HIV negative sis eradication in 2020. Other neg- 2016 new HIV declined 66% for chil- and again 208 thousand death among lected tropical diseases globally Ebola, dren under 15 and 45% among adoles- HIV positive. In neglected topical dis- zika, Buruli ulcer, Chagas diseases and cent aged 15-19. In SDG, everyone eases like Kala-zar (viceral leishmania- cysticercosis. In neglected tropical dis- with HIV needs to access to treatment. sis), lymphatic filaria, dengue, these are eases, reducing premature death the In 2019 it was estimated that globally prominent. In kala-azar, in 2006, 9,379 performance of Bangladesh health sec- 38 million HIV affected people are deaths were recorded. tor needs to take further attention. there and in only in 2019, 1.7 million We have very good record in fighting If we consider non-communicable dis- were new patients. In comparison to Malaria with a target to reach 3 per eases, that is cancer, diabetic, heart dis- 2010, it is reduced by 23% but 2019 thousand population by 2020 but we eases etc. globally 36 million deaths figure is 3 times higher than 2020 pro- could reach 0.92 by 2019. Tuberculo- from non-communicable diseases and jection. Now transmission is very slow, sis we addressed very efficiently with a among those, 29 million that is three 67% have access to Antiretroviral ther- target to reach 200 by 2025 and 150 fourth in the low and middle-income apy, 15%, i.e. 5.8 million in Asia and by 2030; in the meantime, in 2018 we countries. In South Asia, non-commu- Pacific and 67% from Africa. In reached 161 per 100000. nicable diseases account for around Bangladesh we had 0.04 HIV half of annual mortality. In patient per 1000 population in Bangladesh 59% of total death is the base year 2016 with a target for non-communicable disease, to reduce gradually to 0.01 in that is 886 thousand death a year. 2030. In MDG period and prior In 2015, 7.1 million case of dia- to that our all-out efforts to pre- betes, 3.7 million may be undiag- vent HIV/AIDS were very effec- nosed and the same year, 129 tive and meaningful and that thousand deaths were out of dia- enabled us to keep HIV patient betes. In non-communicable dis- very low. eases which are commonly heart For Malaria in 2015 to 2017 pe- disease, cancer, diabetes we fixed riod globally almost no signifi- the target but we need to look to

April 1, 2021 29 Road accident is another cause of death; globally 1.35 million people die in road traffic crashes in 2016; one death in 25 seconds. A study shows only 28 countries of the globe has enough law for speed, drunk, reckless driving, helmets, seat-belts. One third of deaths in low- and middle-income country are among pedestrians and cy- clists. Road accident is inversely pro- portionate with income; higher the income lower the death rate. In 2013, Bangladesh faced 13.6 death per 100,000 persons and 1,020.6 death per 100,000 vehicles. One of the Nordic countries Norway had only 2 death per 100,000 persons and 3 deaths per 100,000 vehicles in 2013. In Bangladesh record shows in 2018 we had 4,439 deathtoll but in 2019, 788 death increased and it came to the collection of data more seriously. “Kan Payte Roi” is the only active plat- 5,227. One of the most important form. During Covid, at the beginning, areas in achieving SDG, reducing the Another cause of death globally is sui- death from non-communicable dis- death in road accidents. Here our tar- cide. Amongst all the death globally eases increased due to lack of health get was per lac 2 person by 2020 but 1.4% are from suicide. It is estimated facilities, but in the mean time in our in 2018 we could reach 1.64 per lakh. 800,000 people commit suicide glob- country, we have the protocol of deal- ally every year, this is twice the num- ing both corona or non-corona pa- Health issues is mostly related with sex- ber of homicides. And this is the tients simultaneously. But globally ual re-production and family planning leading cause of death among the tendency of suicide is higher during activities. The method of family plan- youth, one person in every 40 sec- covid both in man and woman due to ning used by women, our target was to onds. Global suicide is half for woman loneliness, fear of death, sometimes reach 75% by 2020 and remarkable than man. Greenland with the highest unbearable mental condition. In an- performance is 62.1% by 2019. In terms rate of suicide; this silent death now other study in 2017 it showed that sui- of human resource in each of the union has a lower tendency. In Bangladesh, cide in Bangladesh is higher in males parishads, we have our health and fam- we have 2.06% of global suicide with than females. And male to female ratio ily planning service provider who used a tendency of suicide among woman 1.09 but commonly it is understood to visit the houses and they are available opposite to the global picture, it is that suicide rate among the woman is in the community clinic, which is one higher than man. It is estimated that higher because of their safety, more primary health infrastructure covered there are 11,000 suicides in emotion, poverty and other social 6,000 people. This unique arrangement Bangladesh yearly, which makes 32 stigma. In terms of suicide in of community clinic along with the death daily. Honorable prime minister Bangladesh we had base data of 7.68 health and family planning service instructed to setup an institute to study per lakh death in 2015 with almost no providers, distributing 30 types of essen- suicide. With a local study it was progress since then. SDG Target 3.5 re- tial medicine free with expert support found, in some of the areas, specially lating to drug and alcohol in 2018 from the upazila made our health sys- Satkhira and Jhenaidaha, tendency of about 38,000 people were treated with tem much stronger than that of other suicide is higher. To reduce suicide, a target to treat for substance abuse countries of similar economy. social mobilization is very much es- 45,000 in 2025 and 55,000 by 2030. EP sential. But unfortunately, in our coun- In our country, use of alcohol is very Md. Abul Kalam Azad; try we only find a small minimum and we reformulated the tar- Former Principal Secretary and non-government organization named get in 2020 which is at a lower scale. Principal SDG Coordinator

April 1, 2021 30 Webinar

Bangladesh’s Geological Setup Rich in Atomic Minerals Expert Tells Mir Moinul Huq Memorial Lecture Series

Mortuza Ahmad Faruque

he fourth of the Mir Moinul Huq geochemistry, uses, prices and eco- and processing of placer minerals of Memorial Lecture Series titled nomic viabilities. Bangladesh. He mentioned that many “Atomic and Heavy Mineral Re- changes occurred at the coastal areas of T Dr. Akon strongly criticised that proper sources of Bangladesh; and their impor- Bangladesh during last 20 years due to attention is yet to be given by the gov- tance in the industries including natural and anthropogenic reasons. ernment agencies for the development Nuclear Power Plant” was held virtually of these heavy mineral resources in spite Dr. Badrul Imam emphasized on proper on February 27, 2021. The keynote of their substantial economic potential. documentation of resources as the first paper was presented by Dr. Eunus He also appraised the importance of task for geologists and pointed out that Akon, former Chief Geologist & Direc- uranium in nuclear power program and there are new land masses being emerged tor, Bangladesh Atomic Energy Commis- heavy minerals exploration by in the Bay of Bengal. He suggested map- sion. Around 40 geologists/geoscientists Bangladesh Atomic Energy Commis- ping the land as soon as possible. participated in the meeting from sion, Geological Survey of Bangladesh Canada, USA, Australia and The review of the presentation was con- and Institute of Mines and Metallurgy. Bangladesh. ducted by Mr. Mortuza Ahamed Following the presentation, a panel dis- Faruque, former Managing Director of During the presentation, Dr. Akon cussion was held by experts. Mr. Ba- BAPEX. He appreciated that a very use- pointed out that most of the geological harul Alam Biswas, General Manager at ful and excellent presentation has been elements that are considered to be fa- Everlast Minerals Limited, emphasized given by Mr. Akon and the valuable vorable for the accumulation of ura- on the opportunity to develop a world contributions from the discussants. He nium/thorium bearing atomic minerals class mineral sands industry in informed the meeting about updated in- are present in the geological setup of Bangladesh. He mentioned that there formation on major existing nuclear Bangladesh. Mineralogical studies of are some international and local com- power plants in the different countries the radioactive sandstones from Sylhet panies already involved in the beach of the world. have confirmed the presence of ura- environment of the southern coastal re- Mr. Mortuza briefed about the long his- nium-rich atomic minerals uranothorite gions and the bars mainly under Bhola, tory of the construction of Rooppur Nu- and thorianite along with other radioac- Patuakhali and Noakhali Districts, and clear Power Plant project which was tive minerals. For the sustainable devel- at places as shoals in the continental conceived in 1961 and given emphasis opment of the nuclear power program shelf of the Bay of Bengal. Mr. Bahar in- on necessity of uranium mining in and considering the importance of in- formed that the government of Bangladesh. He also informed that the digenous source of uranium, Dr. Akon Bangladesh is keen to develop this in- government is actively considering and suggested that a detailed exploration dustry and Prime Minister Sheikh planning construction of a second nu- needs to be carried out to map the po- Hasina has given an instruction at an clear power plant by 2031 and 3rd by tential areas of Bangladesh. ECNEC meeting in 2016 to work on it 2041. with an aim to explore and exploit valu- He mentioned that a systematic explo- able heavy minerals from the river beds ration in the south-eastern coastal belt The chairperson of the session was Mr. and already approved two projects to of Bangladesh has resulted in the dis- Nazmul Hossain, geoscientist from identify valuable heavy minerals in the covery of a good number of heavy min- USA. The meeting was anchored by Mr. sandbars of the rivers and to set up a erals in the coastal beaches and offshore Jasimuddin, a retired geologist from mineral sands processing center by the islands. Heavy mineral deposits consti- Dhaka, and the Chief Coordinator was Institute of Mining, Mineralogy and tute about two million tonnes which is Mr. Nazim Ahmed, geologist who lives Metallurgy at Joypurhat. comprised of ilmenite, garnet, zircon, in Calgary, Canada. leucoxene, kyanite, rutile, magnetite Dr. Mohammad Rajib, Principal Geolo- EP and monazite. He also briefed about the gist at the Institute of Nuclear Minerals, Mortuza Ahmad Faruque; location of heavy mineral deposits, its Bangladesh Atomic Energy Commis- Energy Specialist and former Managing characteristics, reserves, mineralogy, sion, gave importance on exploration Director, BAPEX

April 1, 2021 31

Report Ongoing Projects to Ensure GTCL Plans to Raise Tk 400cr from Uninterrupted Power Supply: Nasrul Stock Market

the program, while tate-owned Gas Transmis- any premium for the shares, power secretary Md Ssion Company Limited he said. (GTCL) will raise Tk 400 Habibur Rahman spoke The company would convert crore from the capital market as the special guest. the share money deposit of as per a government decision the government investment Managing Director of to enlist its profit-making into shares soon. Dhaka Power Distribu- companies on the stock mar- tion Company (DPDC) ket. As per the securities rules, Bikash Dewan pre- only government-owned The company will go public tate Minister for Power, sented the keynote paper. company can apply for the Energy and Mineral Re- through direct listing S Among others, Professor of direct listing on the stock ex- sources Nasrul Hamid re- method. BUET Ziaur Rahman Khan, first changes. cently said after “GTCL has recently signed vice president of BKMEA Mo- The government has taken implementation of the ongo- an agreement with state-run hammad Hatem and president several initiatives since 2007 ing projects of modernization Investment Corporation of of Bangladesh Shop Owners’ to enlist government-owned of distribution companies Bangladesh (ICB) to appoint Association Md Helal Uddin companies, including GTCL, will ensure uninterrupted it as the issue manager for joined the program virtually. on the stock market but was power supply to the con- listing with the country’s two able to enlist only sumers. Nasrul Hamid said various stock exchanges,” said a Bangladesh Submarine Ca- “Bangladesh’s distribution steps are being implemented high official at GTCL. to bring the entire power sec- bles Company in 2012. system is being upgraded like He said that it took the listing the distribution system of the tor under digitization to en- On February 2, 2020, finance sure better service to the initiative as per a govern- developed nations. The main ment decision. minister AHM Mustafa Kamal goal of the projects will be customers. declared that the government raising customer service,” he The steps are Supervisory The company has decided to instructed five energy compa- raise its paid up capital to Tk told as the chief guest at a Control and Data Acquisition nies, including GTCL, to go 4,000 crore from Tk 700 webinar. (SCADA), Enterprise Resource public immediately. crore and the authorized Forum for Energy Reporters, Planning (ERP), smart grid, smart meter, Geographical In- capital to Tk 10,000 crore Meanwhile, the Financial Bangladesh (FERB) organized from Tk 1,000 crore, he said. the webinar on ‘Under- formation System (GIS) map- Reporting Council on Febru- ground cabling to ensure un- ping, underground cabling, So, it will initially offload 10 ary 11, 2020 issued a notifi- interrupted power supply’ in underground substations, pre- per cent of its shares, or 40 cation, making it mandatory the capital with its chairman paid metering system, mobile crore shares, at Tk 10 each, for companies to convert phone and internet, new con- Arun Karmakar in the chair. he added. share money deposits into nection through online and Executive director of FERB If floated, the size of paid up shares within six months. the net metering guideline, he Shamim Jahangir moderated capital and floating shares of said. EP the company would be the Deposit against shares in Govt to Import 33.60 lakh mmbtu second largest after Robi Ax- GTCL was Tk 3,405.04 iata Limited on the stock ex- crore, as per the company’s LNG from US changes. financial statements in 2019- he government recently The approval came at the The company will not take 20. Tapproved a proposal of meeting of the Cabinet Com- As per the financial state- procuring 33.60 lakh mmbtu mittee on Government Pur- ments of 2019-20, the net Liquefied Natural Gas (LNG) chase (CCGP) with Finance from a US company to meet Minister AHM Mustafa profit after tax of the com- the country’s growing de- Kamal in the chair. pany was Tk 178.44 mand of the energy. The cost of importing per crore. The US-based company Ex- mmbtu LNG from the USA There are 18 state-owned celerate Energy LP will sup- will be $6.53, said Additional companies listed on the ply it at a cost of over Tk 2.18 Secretary of Cabinet Division billion. Dr Shahida Khatun. EP stock market. EP

April 1, 2021 33 Report Gas Supply Disruption in Dhaka BPDB Completes Partial Stake Sale Salehpur bridge in Power Grid over the Turag river in Amin he Bangladesh Power Dhaka bourse, according to Bazar, Titas offi- TDevelopment Board the announcement made by cials said. (BPDB), a corporate sponsor Power Grid on the website of RHD officials, on of Power Grid Company of Dhaka Stock Exchange on the other hand, Bangladesh, has completed Monday. said the line was its partial stake sale in the The share price of Power housands of people in dif- installed on RHD land with- company amounting to Grid advanced 2.2 per cent ferent parts of capital T out permission and that they 34,353,440 shares worth ap- during the session to close at Dhaka suffered badly after were not aware of its pres- proximately Tk 161.8 crore. Tk 47.1 on Monday follow- being hit by a severe gas crisis ence. Power Grid made the an- ing the announcement on as a Titas connection was nouncement recently on the completion of the stake sale. damaged in Amin Bazar on Arguing that the RHD cannot the outskirts of the city re- be held responsible for the peo- website of the Chittagong Power Grid posted earnings cently. ple's suffering, the officials said Stock Exchange. per share of Tk 2.51 during the no such gas line should be in- On December 21 last year, July-December period of 2020. While Titas and Roads and stalled so close to a main road. the BPDB expressed its inten- Highways Department (RHD) Its shares traded between Tk officials traded blame for the Titas officials said they took tion to sell 34,353,440 shares 36.10 and Tk 55.20 in the situation, many of the affected due permission during the in- out of its total holdings of past year. stallation of the gas line. 603,259,748 shares at the people did not get the gas As of February 28 this year, connection back on the day. In the meantime, thousands of prevailing market price within 90 working days. directors and sponsors Titas Gas Transmission and people in Mohammadpur, owned 80.10 per cent of the Distribution Company Ltd offi- Lalmatia, parts of Dhan- It took 58 trading sessions to company while 14 per cent cials said the gas line was dam- mondi, Jhigatola, Razabazar, offload the shares. The clos- was owned by institutes, 0.13 aged by an RHD contractor. Indira road, Pirerbagh, Ha- ing price of Power Grid stock per cent by foreign investors, jaribagh, and Eskaton suffered went up as high as Tk 59.5 and 5.77 per cent by the gen- The problem began after the due to a shortage of gas. during the period. feeder line was damaged dur- eral public. ing construction work of Unable to get gas at home, BPDB sold approximately 93 Directors and sponsors owned those people bought foodEP per cent of the shares at the 84.64 per cent a year ago. EP BEZA Gets $27.07bn Investment Proposals GE Sells Jet-Leasing Unit to angladesh Economic nies of China, India, the UK, AerCap for $30bn BZones Authority (BEZA) the USA, the Netherlands, has so far received investment Japan, Singapore, Australia, eneral Electric announced than 300 customers around proposals amounting to South Korea, Malaysia and a deal recently to sell its the world, AerCap said. around US$27.07 billion from Germany. G aircraft leasing business to Aer- The airline industry remains local and foreign business en- Cap for $30 billion, establishing in a deep downturn due to the tities in the light of various BEZA Executive Chairman a new industry giant amid the coronavirus pandemic, al- steps of the government to at- Paban Chowdhury said be- pandemic-induced downturn though progress on vaccina- tract new investments. yond these investment pro- posals, many in air travel. tion campaigns is expected to The proposed investments world-renowned foreign com- Under the transaction, the GE lead to a gradual rebound. may create over 10 lakh job panies are coming with big unit will be integrated into the "As the recovery in air travel opportunities in the country. investment offers. Irish company. GE will have a gathers pace, this transaction Out of the total amount, 46-percent stake in the new represents a unique opportu- He further said that due to around $23.97 billion invest- entity and will nominate two nity that we believe will cre- the sustainability and long- ment proposals have come for members to AerCap's board, ate long-term value for our term planning of the present the government EZs while the announcement said. investors," said AerCap chief $3.1 billion for private EZs. government, Bangabandhu executive Aengus Kelly. Sheikh Mujib Shilpa Nagar The combined company will Of those, around $1.62 bil- GE will receive $24 billion in (BSMSN) has been known as have more than 2,000 owned lion proposals have come as cash from AerCap as well as an ideal place for domestic and managed aircraft, more foreign direct investment shares in the new company and foreign investors. than 300 helicopters and more (FDI) from different compa- EP worth about $6 billion. EP

April 1, 2021 34 Report VAT on LPG Down to 7pc Saudi Aramco 2020 Profits Slump

nergy giant Saudi Aramco made its stock market debut Erecently posted a 44.4 per in 2019, played up its ‘strong cent slump in 2020 net profit financial resilience’ despite due to lower crude prices, as the challenges. the coronavirus pandemic Crude prices have risen in re- weighed heavily on global cent weeks to over $60 per demand. barrel. Aramco, Saudi Arabia’s cash But in the short term, analysts cow, has revealed consecu- say the Saudi giant is bracing tive falls in profits since it for a possible further wave of began disclosing earnings in coronavirus infections that 2019. That has piled pressure could undermine a tentative on government finances as global economic recovery. Riyadh pursues multi-billion dollar projects to diversify the As the global vaccination oil-reliant economy. program gains momentum, however, Aramco said that it ‘Aramco achieved a net in- was seeing a pick-up in come of $49 billion in 2020,’ he National Board of duction or supply stage of crude demand in energy- the company said in a state- TRevenue (NBR) has de- the fuel. hungry Asia and other parts ment – down from $88.2 cided to reduce VAT on of the world. Liquefied Petroleum Gas The VAT officials said they billion in 2019. Analysts say that the com- (LPG) to 7.0 per cent from sent the letter to the BERC Saudi Arabia, the world’s pany’s debt levels surged in the existing 15 per cent to and requested it to fix the biggest crude exporter, was 2020 as it offered sharehold- make its prices affordable LPG prices on the basis of hammered last year by the ers a bumper dividend even to the end-users. the reduced VAT rate. double whammy of low as its earnings plunged. prices and sharp cuts in pro- There will be 5.0 per cent Officials said the VAT rate duction. Aramco said that it stuck to VAT at production or sup- on LPG had been cut fol- ply stage and 2.0 per cent lowing recommendations VAT at business stage, of the BERC to facilitate once the decision is im- distribution of the fuel plemented. among the consumers at reasonable prices. The NBR's VAT Wing re- cently sent a letter in this The NBR subsequently de- regard to the Bangladesh cided to exempt VAT at Energy Regulatory Com- consumer end, and re- mission (BERC). duced tax at business stage. BERC Member (Gas) Maqbul-e-Elahi Chowd- As per the High Court Aramco chief executive hury said the consumers (HC) order, the commis- its commitment of paying Amin Nasser described it as would get the benefit of sion would have to re-fix shareholders dividends worth ‘one of the most challenging 8.0 per cent tax reduction, LPG prices at consumer $75 billion in 2020 – an years in recent history’. but local LPG prices vary level by this month. amount that exceeds the de- in line with fluctuation in The firm said ‘revenues were clared profit and available international prices. The BERC member said impacted by lower crude oil cash flow. the commission would try prices and volumes sold, and Dividend payments from Currently, there is 5.0 per to re-fix the prices by this weakened refining and Aramco help the Saudi gov- cent VAT at retail stage, month, but it was allowed chemicals margins’. ernment, the company’s 5.0 per cent VAT at busi- to take time until mid- But compared to many of its biggest shareholder, manage ness stage, and another April, according to the loss-generating international its ballooning budget deficit. 5.0 per cent VAT at pro- law. EP peers, the company, which EP

April 1, 2021 35

Factories Urged to Set Rooftop Renewable Energy Solar Panels Laboratory on Cards

rime Ministers Energy Adviser Dr PTawfiq-e-Elahi Chowdhury said that the energy laboratory will create a net- work between local and foreign acade- micians and researchers. "It will create an environment for aca- demics, researchers, scientists and part- ners to work together," he added. He said this while addressing a virtual seminar titled "A Proposal to Set Up Bangladesh National Renewable Energy Laboratory (BNREL)" organized by Bangladesh Energy and Power Research Council (BEPRC). Dr Tawfiq said that the energy laborato- nitwear factory own- Manufacturers and Ex- State Minister of Power En- ries can be enriched with the help of ers could play an im- porters Association ergy and Mineral Re- K technology from home and abroad. portant role in producing (BKMEA) members. sources Ministry Nasrul green energy through set- Hamid was present at the "Funding for research is not a problem Currently, there are ting up solar power pan- program as the chief guest. and the research work could be ex- around 1,200 knitwear els at their factories' tended beyond Dhaka without focusing factories across the rooftops. He said the leaders of on Dhaka," he added. country. Bangladesh's knitwear in- This rooftop solar power dustry owners' associa- Dean of the School of Engineering, In- Earlier, Infrastructure will push the clothing in- tion need to do more to formation Technology and Physical Sci- dustries one step ahead in Development Company promote green technol- ence at the Federation University of global competition as Limited — a government- ogy in line with global Australia Syed Islam presented the well, speakers noted at a owned non-bank finan- climate change. keynote paper. virtual workshop titled cial institution Generating electricity in "Scaling up net metered specialized in financing The keynote paper shed light on some net metering system using rooftop solar on knitwear in renewables — dis- of the challenges of setting up laborato- solar technology in indus- industry" held recently. closed that around ries in the context of Bangladesh. trial establishments can Sustainable and Renew- 5,000 megawatts (MW) be a good investment. The experience of setting up laboratories of electricity can be able Energy Development in a global context, role of BEPRC, Authority under the Min- generated by installing Through this it is possible measurable infrastructure, research op- istry of Power Energy and solar panels on the to reduce electricity bills portunities, renewable energy modeling, Mineral Resources hosted rooftops of ready-made and establish Green In- planning and management through joint the event for the garments (RMG), textiles dustry, he suggested. activities, and other issues were also dis- Bangladesh Knitwear and other industries. EP cussed. EP

April 1, 2021 37 Two More Wind Power Plants on Cards Solar Panel Adds sources. They said the proposed Power to two plants are to be set National Grid up at Kachin in Chand- pur and at Inani Beach olar panel has been adding extra in Cox's Bazar on build- power to the national grid lessening own-operate (BOT) basis S the gradually mounting pressure on fossil in private sector. fuel in Rajshahi Barind area. "Each of the two projects Besides, the farmers are seen irrigating will have 50-MW gener- their croplands through using the solar ation capacity," said a panel at less cost. wo more wind power plants -- one in source adding that the BPDB received TChandpur and another at Inani Beach, bids for the two projects through a re-ten- Barind Multipurpose Development Au- Cox's Bazar -- are likely to be awarded der process in December last year. thority (BMDA), the ever-largest irrigation- soon as the government wants wind en- providing state-owned entity in the ergy to be poured into the national grid Earlier, the BPDB had moved to set up country’s northwest region, has installed power to ensure a better power supply in three wind power plants, including the a solar power-based irrigation technology the country. above two and another at Mongla. connecting a deep-tube-well at Habaspur area under Godagari upazila in the dis- The Bangladesh Power Development After floating of tenders, only one respon- trict. Board (BPDB) has already started evalu- sive bidder was found for Mongla plant ating a number of bids submitted by as- and no one found for the Chandpur and Process of installing the same technology piring bidders, according to official Inani Beach projects, the official said. in two more deep tube wells is progress- ing fast in the Barind area, said Engineer Abdur Rashid, Superintending Engineer of IDCOL to Support EV Accessibility BMDA. in Bangladesh Engineer Rashid said they connected the solar panel in the deep-tube-well in July nfrastructure Development Company egy (BEIS) under its UK PACT (Partnering last year. Earlier, the deep-tube-well was ILimited (IDCOL), a non-bank financial for Accelerated Climate Transitions) being operated through the power of institution, is going to support Ricardo- Green Recovery Challenge Fund (GRCF). Rural Electrification Board (REB). AEA Limited, an UK-based international UK PACT is a capacity building program But at present, 19 kilowatts solar power is energy and environmental consulting firm under the UK’s International Climate Fi- being generated there per hour and 11 in a project that will enable businesses in nance portfolio. The GRCF program was kilowatts of those are being used for irri- Bangladesh to access finance to invest in set up in January 2020 under which proj- gation to around 100 bigha of farming new electric vehicles. ects in countries across Latin America, fields. The rest power is being added to Ricardo has received funding for the proj- Sub-Saharan Africa, and Asia will be sup- the national power grid through REB’s net ect from the UK Government Department ported to accelerate their low-carbon metering system. for Business, Energy and Industrial Strat- transition. Eventually, all the generated powers are In this project experts from Ri- added to the national grid during the off- cardo, IDCOL and other season, Engineer Rashid added. Bangladeshi organizations such Chairman of Sustainable Energy Develop- as Light Castle Partners and Policy ment Authority (SEDA) Muhammad Exchange will scope scalable in- Alauddin visited the Habaspur irrigation clusive business models and an deep tube-well recently expressing his enabling financing ecosystem for satisfaction over the activities. individual transport providers / He urged the BMDA officials to expand SMEs / cooperatives with an aim the technology to other parts of the water- for electric vehicle uptake in stressed area for the welfare of the farmers Bangladesh. in general. EP EP

April 1, 2021 38 German Solar Developer Faces Demonstration in Bangladesh MoU Signed to Develop Integrated Fishery Solar Project in Sylhet

olar EPC Development Limited S(SEPC) recently signed a memoran- dum of understanding (MoU) with agro- erman renewables company Ib The protesters say 5,000 farmers will GVogt GmbH, and local partner AG lose their livelihoods if the Sonagazi Agro Industries Ltd, are facing demon- Solar Power Ltd project is constructed strations as they endeavor to set up a on 207 acres of farmland. 50 MW solar power plant in Bangladesh’s Feni district. The controversial project is being es- tablished by state body the Bangladesh Protesting farmers have formed human Power Development Board under the chains in the project area and claim Private Sector Power Generation Policy farmland producing three crops a year of Bangladesh Act of 1996, which aims was selected for the solar site instead of to generate private capital for the based company SKL Farm to develop an a barren field. power sector. EP integrated fishery solar project in Sylhet. The SEPC is the pioneer of floating solar Govt to Discourage Sub-standard project in Bangladesh, says a press release. SEPC's initial target is to install a cumu- Equipment for RE lative 25 megawatt (MW) solar project including rooftop solar, ground- he government is likely to dis- first time adopted comprehensive mounted solar, solar irrigation, and inte- Tcourage the substandard equip- policy to expand the renewable en- grated fishery solar. ment import with tagging embargo ergy sources. Of the targeted installation, 20 MW will in import policy for expansion of He said the government is working be an IPP model integrated fishery-solar renewable energy resources here. to expand the wind-base power project on several fishing ponds of SKL Farm. A cumulative 05 MW capacity “The Minister of Commerce as- projects at Payra and Inani in Cox’s will be consumed by SKL and adjacent sured us to prepare a guideline and Bazar. other farms. set a standard and specification on He added the SREDA is working to import policy within three months SKL Farm will provide around 100 acres expand rooftop solar with the sup- to discourage the substandard solar of fishery ponds to develop an inte- port of BGMEA and BKMEA. equipments,” Sustainable and Re- grated fishery solar project for 20 years newable Energy Development Au- of the project tenure. Attending at the seminar, SREDA thority (SREDA) chairman project director Md Manzur Mor- In the first phase, SEPC will develop Mohammad Alauddin said at semi- rooftop solar followed by others. SEPC shed said the renewable energy nar on ‘Renewable Energy Devel- is yet to submit an unsolicited project ’ opment in Bangladesh organized share is only 3.24 percent or proposal to the Ministry of Power, En- by SREDA recently. 722.2MW against electricity gener- ergy and Mineral Resources for the pro- ation capacity 24,421MW. He said the government has for the posed 20 MW project. EP EP

April 1, 2021 39

Climate Bangladesh Most Polluted: UK Issues Grants for Three Report Carbon Projects quinor has secured decarbonize the Efunding from UK au- Teesside industrial clus- thorities for three CO2 ter via carbon capture emissions projects in and to construct a new northeast England. gas-fired power station The collective aim of the using carbon capture company and its part- technology. ners is to create the world’s first net zero in- Northern Endurance ir quality of Bangladesh (mcg/m3) of air, which is dustrial cluster by 2040. Partnership, operated by bp (the other partici- Awas the worst in the seven times above WHO ex- Funds will be issued world, while its capital posure recommendation. pants are Equinor, Eni, under the UK’s Industrial Dhaka was the second most National Grid, Shell, Researchers from IQAir -- a air polluted city in 2020, said Strategy Challenge global air quality information and Total), which plans a global report. Fund. and Swiss-based tech com- to develop offshore CO2 "South Asia remained the pany -- analyzed pollution Zero Carbon Humber transport and storage in- most polluted region of the data from 106 countries, (ZCH), a 12-company frastructure in the UK world with Bangladesh, India specifically measuring PM partnership targeting North Sea serving both and Pakistan sharing 42 of 2.5, a microscopic pollutant step-wise deployment of ZCH and NZT. the 50 most polluted cities that can cause serious health low-carbon hydrogen, worldwide," shows new data risks. carbon capture and neg- The three successful from IQAir's global air qual- "An estimated 13-22 percent bids attracted £229 mil- ity data platform in its World ative emissions at sites of deaths in this region are lion ($318.7 million) in Air Quality Report 2020. across the Humber estu- linked to the health effects of ary. The first is the private and public fund- The report published recently air pollution exposure, with Equinor-led H2H ing, with Equinor and its said the average annual PM associated estimated costs partners contributing 2.5 concentrations in equating to 7.4 percent of the Saltend low-carbon hy- more than two-thirds of Bangladesh was 77.1 micro- region's GDP," the report drogen facility and a hy- drogen and carbon this. grams per cubic meter said. EP dioxide (CO2) pipeline In each case, the money network across Humber Energy, Climate Leaders to Boost will be used to progress industrial sites devel- the project through the Clean Energy Momentum oped by National Grid detailed engineering Ventures. op international energy Sharma, the Net Zero Sum- and design stages to the Tand climate leaders from mit is a critical milestone on Net Zero Teesside point where a final in- the world’s largest economies the road to COP26 in Glas- (NZT), a five-company vestment decision can took part in the IEA-COP26 gow in November. Net Zero Summit on 31 partnership seeking to be taken. EP March to accelerate the mo- The Summit included a dy- mentum behind clean energy namic dialogue between the mans and Indian Minister of including Belgium, Brazil, and examine how countries world’s major economies, Power, New and Renewable Chile, Colombia, Czech Re- can work together more ef- which are also large emitters, Energy Raj Kumar Singh. public, Ethiopia, Germany, fectively to reduce their with the participation of US Greece, Italy, Japan, Kenya, High-profile energy and cli- greenhouse gas emissions to Presidential Special Envoy for Luxembourg, Mexico, Mo- mate leaders attended the net zero in line with shared Climate John Kerry, Chinese rocco, Netherlands, Norway, Summit represented coun- international goals. Special Envoy on Climate Poland, Slovakia and Spain. tries that together account for Change Xie Zhenhua, Euro- Co-hosted by IEA Executive the vast majority of global en- Global figures from business and pean Commission Executive Director Fatih Birol and ergy demand and green- civil society also took part along- Vice-President Frans Timmer- COP26 President Alok house gas emissions, side youth representatives. EP

April 1, 2021 41 Climate Renewable Power Needs to Grow Fast-Track Energy Transitions to 55-Fold in India By 2050: Study Win the Race to Zero by 2050 the roven technologies for a Carbon capture and removal share of elec- Pnet-zero energy system al- technologies in combination tricity in India's ready largely exist today, with bioenergy will deliver industrial en- finds the preview of World the ‘last mile’ CO2 reduc- ergy use must Energy Transitions Outlook tions towards a net-zero en- rise three-fold, by the International Renew- ergy system. from 20.3 per able Energy Agency (IRENA). With 2030 deadlines around cent in 2018 to Renewable power, green hy- the corner, this Outlook 70 per cent in drogen and modern bioen- comes at a critical time when 2050, the ergy will dominate the world acting fast and bold on global enewables in electricity study - Peaking and Net-Zero of energy of the future. climate pledges is crucial in must increase 55-fold for for India's Energy Sector CO2 R Previewed at the Berlin En- the decisive year of UN India to achieve net-zero Emissions: An Analytical Ex- ergy Transition Dialogue re- High-Level Dialogue on En- emissions by 2050, accord- position - revealed. cently, IRENA’s Outlook ergy and Glasgow Climate ing to a report by Council on The share of electric vehicles proposes energy transition Conference COP26. Energy, Environment and in passenger car sales will solutions for the narrow path- Water (CEEW). Financial markets reflect this also have to rise to 76 per way available to contain the ° shift by allocating capital India will need to generate at cent by 2050 from just 0.1 rise of temperature to 1.5 C away from fossil fuels and least 83 per cent of its elec- per cent in 2019, it added. and halt irreversible global into sustainable assets like re- tricity from (non-hydro warming. These estimates are based on newables. power) renewable energy Around 90% of all decarbon- CEEW's best understanding sources by 2050 to achieve isation solutions in 2050 will The downgrading of fossil of progress on mitigation net-zero greenhouse gas involve renewable energy fuels continues, with shares of technologies. ‑ emissions by mid-century, through direct supply of low- fossil fuel-heavy energy sector according to the study. To meet net-zero, India will cost power, efficiency, re- in S&P index falling from 13% need to either eliminate newable-powered a decade ago to below 3% This would mean a massive greenhouse gas (GHG) emis- electrification in end-use as today. In contrast, investors are 55-fold increase in the use of sions or balance these by se- well as green hydrogen. flooding money into renew- non-hydro renewables in able energy stock with questering GHG emissions. electricity generation within S&P clean energy up by the coming three decades, The study is the first exercise 138% in 2020. to outline multiple pathways from only 160 Terawatt-hour However, significant in- for India to attain net-zero (TWh) (10 per cent) in 2019, vestment will have to be emissions, rather than fixat- CEEW said in a statement. redirected, IRENA’s Out- ing on a single scenario or a Further, to achieve net-zero look shows. single year. EP EP nity-based organization sure governance and ac- SDG Success to Depend on (CBO) conference held in countability for effective Localized Execution the city. SDGs implementation. he success of SDGs im- cially inclusive and an en- Achieving at least 12 out of “Effectiveness of SDG-re- Tplementation will vironment-friendly 17 SDGs will require coor- lated service delivery at largely depend on its effec- Bangladesh,” Prof dinated localized action local level will depend on tive execution at local Mustafizur Rahman, Distin- plan tailored to the local an institutionalized struc- stage and in a coordinated guished Fellow of Centre needs to send public serv- ture,” Prof Mustafizur Rah- way, Citizen’s Platform for for Policy Dialogue (CPD), ices more effectively to the man said. SDGs, Bangladesh said re- said. marginal people, the citi- Citizen’s Platform for SDGs, in cently. zen’s platform listed. “It is said that all develop- association with OXFAM and “The supreme sacrifice of ment are local and SDGs It called for a “social con- the EU, organized the confer- the people of this country should also be imple- tract” between citizens, ence at city’s Bangabandhu In- was intended for an eco- mented from local level,” local government and peo- ternational Conference Centre (BICC). nomically prosperous, so- he stressed at a commu- ple representatives to en- EP

April 1, 2021 42 Column Indo-Bangla Connectivity is Key to Region’s Prosperity

angladesh is basking in the suc- A common thread running through the Bangladesh had been subjected to two cessful celebrations of the 50 world leaders’ speeches was the hom- successful military coups and 19 other Byears of its independence and the age paid to Sheikh Mujib and the praise failed attempts. The country had re- birth centenary of the nation’s founding for his daughter Sheikh Hasina for her turned to the tracks of democracy and father Sheikh Mujibur Rahman. Braving able leadership in the transformation of development only after Sheikh Hasina a surge in the year-long Coronavirus her nation from a basket case to an in- won an election in 1996 bringing her fa- pandemic, Prime Minister Sheikh ternational role model of development. ther’s party Awami League back to Hasina warmly greeted Indian Prime Bangladesh is now set to be formally power after 21 years. She immediately Minister Narendra Modi and leaders recognized as a developing economy ( launched a difficult task of repairing her from the Maldives, Sri Lanka, Nepal and a leap from LDC) by 2026. The gradua- country’s relations with India, severely Bhutan who all came for the physical tion was supposed to have taken place damaged by post-Mujib governments, participation in the well-organized cel- in 2024, but delayed by two years be- known for their bias against India. She ebrations that went flawlessly. Video cause of the pandemic that has hit the took care of New Delhi’s security con- messages were sent by world leaders, global economy. cerns, signed the 30-year-old treaty in including Chinese President Xi Jinping, sharing the water from Ganges River Bangladesh’s rise from war-inflicted US President Joe Biden, British Prime and a peace accord with Shanti Bahini ruins to a robust economy with enviable Minister Boris Johnson, and Russian rebels ending years of insurgency in social development has not been a cat- President Vladimir Putin.Video message southeastern hills bordering India. These walk. The nation had suffered first post- was read out also from Imran Khan, the had been huge achievements for Hasina independence jolt on Aug. 15 in 1975 prime minister of Pakistan against in her first term. After losing the 2001 when its founder was assassinated along whom Bangladesh had fought its War of parliamentary election Hasina had to with most members of his family. Liberation in 1971 with all-out help wait in the opposition bench until Daughters Sheikh Hasina and Sheikh from India. Thus the festivities acquired sweeping another election in 2008 and Rehana had survived by sheer luck as a global character reinforcing interna- since then she has been at the helm of they were at that time away from home tional image of the 50-year-old nation. Bangladesh, largely unchallenged by in Germany. Since the tragedy her weakened political opponents. From its birth to its current stage of mod- erate prosperity Bangladesh has had one steady friend by its side: India. So, it was an appropriate decision to invite the In- dian prime minister to share Bangladesh’s joys on the Independence Day, March 26 in the concluding ses- sion of the 10-day festivities. This also coincided with 50 years of establish- ment of Dhaka-New Delhi diplomatic relation. Apart from Modi’s visits to two Hindu temples (one of them a Matua temple) outside Dhaka as his personal choice, the Indian prime minister had had his hands full with a guest-of-honor speech where he quoted freely from Sheikh Mujib, paying homage to inde- pendence martyrs and the nation’s founder and bilateral talks with Sheikh Prime Minister Sheikh Hasina with Prime Minister Narendra Modi Photo: PID Hasina. In between, he found time to

April 1, 2021 43 meet some young talented people of Bangladesh and some opposition politi- cians. However, the main opposition Bangladesh Nationalist Party was ig- nored as there was no meeting sched- uled with it. During the visit, Dhaka and New Delhi inked five MoUs in key areas like disas- ter management, sports and youth af- fairs, trade and technology. Several projects were virtually opened, includ- ing “Mitali”, a passenger train service linking Dhaka with New Jalpaiguri, West Bengal. A new road called, Swad- hinata Sarak, from Bangladesh’s western Mujibnagar to West Bengal was opened besides the earlier opening of a bridge over River Feni linking Bangladesh with Prime Minister Sheikh Hasina welcoming Bhutanese Premier Dr. Lotay Tshering Photo: PID Tripura and Chilahati-Haldibari train se- ment that India and Bangladesh will to be part of India, Myanmar, Thai- vice. work together for uplifting their land highway to take the benefits of The key takeaway from Modi’s visit, first people through enhanced coopera- connectivity beyond the region. tion in a state of peace and stability, to any foreign country since the out- Not long ago India’s request for road Sheikh Hasina urged New Delhi to break of Corona pandemic, is however transit through Bangladesh to connect to take lead in taking the regional co- the further strengthening of connectivity, its northeastern region was a no-go sub- operation ahead for common pros- seen as the most vital factor in achieving ject for Dhaka. That changed dramati- perity of the region. Hasina hailed economic growth in the South Asian re- cally since Hasina began her second the connectivity as an essential in- gion and beyond. term in 2008. Bangladesh and India are gredient of productivity and called now connected by road, rail, river, sea In her thanks-giving speech Sheikh for extending its beyond India and ’ and air. The rail connection is being re- Hasina gratefully recalled India s Bangladesh roping in Bhutan and vived to the stage that had existed be- generous support - sheltering 10 Nepal, two landlocked neighbors. fore the 1965 war between India and million Bangalis fleeing Pakistani She also wants India to help BIBN Pakistan. So is the road. Bangladesh has genocide, providing military train- and the tri-nation vehicles move- agreed to let India use the country’s ing to Mukti Bahini guerrillas and fi- ment agreement (India, Bangladesh main Chittagong Port to carry goods nally launching all-out military and Nepal) take off in the real from West Bengal to Tripura and on- operation in the final 10 days of the sense. Bangladesh has also offered war. In response to Modi’s state- wards to other northeastern states reduc- ing the transportation length from 1,200 kms to only 100 kms. Dhaka looks for- ward to Nepal and Butan using its Mongla Port and under-construction Pyra Port trough a stretch of Indian ter- ritory to the north. The economic benefits from the con- nectivity and energy cooperation are immense. A recent World Bank study says Bangladesh’s exports to India will increase by 182%, while India’s by 120% if the two countries sign a Free Trade Agreement (FTA). Along with increased connectivity and the potential FTA and a comprehensive economic cooperation accord India and Bangladesh can perform miracles. And Nepalese President Bidhya Devi Bhandari on courtesy call to Prime Minister Sheikh Hasina the rest of the region with them. Photo: PID EP

April 1, 2021 44 Interview Electric Induction Stoves May Hold Back LPG Demand Growth

resent increasing trends of using of plans are ongoing processes. In 2009, electric induction stoves might re- the storage capacity of BPC was enough Pduce cooking cost significantly in for meeting 20-22 days demand. Now it near future. Around 20 percent of the has more than doubled. The actions for population is using LPG for cooking pur- further expanding the storage capacity pose and they have to pay high price. In by installing tanks at different depots are our country, yearly demand of LPG continuing. around 100,000 tonnes of which 15 to The work on construction of liquid 20 percent is being supplied locally and pipeline from Chattogram to Dhaka is in 80 percent is import based. If electricity progress for transporting oil efficiently price becomes cheaper, induction and eliminating losses during transporta- Abu Sufian Ratan Photo: cooker would be better option with the tion. The work of a pipeline for transport- Md Abu Bakr Siddique support of pressure cooker for the users, ing refined product from Numaligargh in terms of cost, more comfortable to Refinery of India to BPC depot at Parba- carry and installation, less cooking time tripur has made a lot of progress by now. etc compared to LPG cylinder. Consider- Work is also going on for the pipeline for ing all these, it might reduce growth rate transporting Jet Oil from Kanchon to Avi- … the supply of fuel oil was not of LPG demand in future. Bangladesh Pe- ation depot of Hazrat Shahjalal Interna- disrupted even for a single day despite troleum Corporation (BPC) has taken an tional Airport, Dhaka. Jet fuel would be initiative to set up a LPG terminal. When of natural calamities, social and pumped directly from Kanchon to the political commotions. Even the global it will be brought into commercial oper- airport. In future, similar facilities would calamity like Coronavirus could not ation, it would contribute significantly to be created for Jessore, Sylhet, Cox’s disrupt the supply. Uninterrupted reduce the LPG price in the local market. Bazar and Syedpur airports in phases. Md Abu Bakr Siddique, Chairman of supply of fuel is an obligation of BPC. Work on Single Point Mooring (SPM) is BPC has been successful in performing BPC, made the observation in an exclu- advancing. Subsea pipeline from Kutub- its obligation as a competent sive interview with Energy & Power Edi- dia will come to Moheshkhali and stor- organization. tor Mollah Amzad Hossain. age facilities are being constructed there. BPC has completed its 40th year of Crude oil from there would be pumped operation. How do you evaluate its through pipeline to the Eastern Refinery achievements over the years? Limited (ERL) in Chattogram. It will make significant savings. These all would di- The outstanding success and achieve- versify sources of supply of liquid fuel. plans for modernizing the marketing ment of BPC is creation of transportation Actions are underway for riverine trans- operations of these companies? infrastructure nationwide for liquid fuel portation of oil to Sylhet region. When Some works on modernization of petro- and other petroleum products. Just for completed, it will ease the pressure on these, the supply of fuel oil was not dis- leum products marketing have been railway transportation system of oil launched. Custody Flow Meter installation rupted even for a single day despite of which is now very weak. natural calamities, social and political for Eastern Refinery is under process and commotions. Even the global calamity In Bangladesh only Octane is now stored automation of fuel measuring in all main like Coronavirus could not disrupt the underground. Many countries of the installations and depots also under supply. Uninterrupted supply of fuel is an world store all petroleum products un- process. Work on using modern analyzer obligation of BPC. BPC has been suc- derground. We are reviewing possibili- and meters for oil quality measurement cessful in performing its obligation as a ties of doing that in future. We have has also started. For control over the competent organization. planned to modernize all jetties. When movements of oil tankers and lorries ac- the plans will be successfully executed, tions are underway for bringing these The demand for oil is growing with oil distribution time would be reduced. under GPRS networks. System loss has time. At the same time, the supply been reduced significantly by now and ac- Padma, Meghna and Jamuna are challenges are also emerging. What tions are under way for further reduction. working on distribution of liquid fuel, kind of initiatives BPC is taking for lube oil and LPG. How would you In 10 years, domestic market for LPG modernizing its supply infrastructure? compare the efficiency of marketing has grown from 80 thousand tonnes Development is a continuous process. of these companies with global stan- to 12 lakh tonnes. But the share of Our motivation, planning and execution dard? What are your perspective public sector has not grown actually.

April 1, 2021 45 Private sector exclusively con- of the proposals were all most similar in Construction of SPM is in progress for tributed to this growth. What are terms of joint venture meaning both sides speedy and efficient delivery of your plans for increasing contribu- investment, sharing, management, debt crude oil. When it will start opera- tion of public sector to the growth of and equity, etc. From the proposals, it is tion? LPG market? likely around $400 million will require We are optimistic about its completion in this project. Please note that BPC has no scope for in- in 2022. Some delays have happened for creasing LPG production at present be- Why Marubeni? We find that only COVID 19 and also changing deep cause it depends on raw material Marubeni Consortium has proposed for trenching design. The sub-sea pipeline produced in ERL and Sylhet Gas Field. joint venture, at the same time, for was supposed to be buried at 3-meter We had first set up the LPG plant based BOOT, a model under PPP. Others have depth in the original design, but that has on by products of our refinery. Now given proposal only for joint venture been changed to 9-meter now taking into propane and butane recovered from where equity from BPC is a must. An- account the various excavation activities NGL has been added to this. Hence there other complexity is that, intended com- in the vicinity. The work on the pipeline is no scope for increasing the capacity pany must take loan and as JV partner, from Maheskhali to Chattogram is in now. The LPG bottling capacity expan- BPC have to come in the purview of loan progress. Crude oil and diesel would be sion can be considered when BPC starts liability. We also examined source of imported using this. When it becomes importing Bulk LPG after setting up pro- fund proposed by the companies. All operational, it would save transportation posed LPG Terminal at Materbari. companies proposed loan from interna- cost up to US$ 5 per Barrel. tional banks, or Financial institutions. But BPC has taken an initiative to set up There are demands for providing per- LPG terminal under joint venture for Marubeni proposed loan from JICA or JBIC which indicates its level of business missions to private companies along- importing bulk LPG. A foreign com- side public ones for importing pany has been taken as a partner. But relation with Japan Government. That is why we have started discussion with petroleum products and marketing. local private companies have the ca- What are your views? Should the price pacity to invest. Why do not you them for signing MOU. We will consider alternatives if negotiation with them be- of petroleum products be left to mar- consider local companies as JV part- ket or it should remain as it is now? ners? What would be the probable come failed. investment for this? Terminal charge will be decided through Like water and others, fuel is also a pub- discussion. BPC would sell LPG to pri- lic good. Our citizens have right to get BPC will not construct LPG terminal in these goods from government, In other joint venture with any company. BPC vate companies after importing. Two Re- frigerated big storage tanks would also words, it is responsibility of the govern- will not invest any money for this. This ment to provide these goods to the citi- would be constructed by vendors’ on be constructed at the terminal. The con- struction of terminal would start immedi- zens. As you know, price of oil depends Built, Own, Operate and Transfer on global market and it changes every (BOOT) basis. BPC will import LPG from ately after completion of deep-sea port at Matabari in 2025. hour and day. The government has been international market using this terminal continuously purchasing it according to through very large oil carriers (VLOC) The transportation cost of LPG to demand of the country, and does supply like present petroleum import system. Chattogram or Mongla port is US$ 90 all over the country at a stable price, ir- The investor company will construct per tonne for shallow draft. How ’ respective of import price and without LPG terminal on BPC s land and will op- much the cost would reduce when considering profit or loss. It is not possi- erate it for a duration agreed by BPC. It BPC terminal is built at Maheshkhali? ble for private sector to follow this men- will take user fee or terminal charge from Will the private operators buy LPG tality. I find no opportunity for leaving it BPC for importing LPG, just like terminal from there? to private sector as private sectors shall charge which is now paid to Chattogram It is very early to assume as proposed ter- never do business incurring loss. Port. After the agreed period, they will minal will start 5 to 6 years later from hand over the ownership of the terminal How pleased are you with the state now. At that time, present demand and to BPC. it has not been decided how of management and skills develop- supply scenario may be changed. long the investing company would oper- ment? Do you have any plan for tak- ate. We have received a proposal from ERL is a 5-decade old company. Its ing up any project for skill Japanese company Marubeni. For nego- capacity is 15 lakh tonnes. It cannot development and restructuring? tiating with them on behalf of the gov- meet the demand of the country now. Bangladesh Petroleum Corporation is an ernment of Bangladesh, BPC is in At this stage, what is your plan for a old organization. It is necessary to in- process to sign a non-binding Memoran- new refinery? crease skills and develop efficient man- dum of Understanding (MOU). For fur- We are on the process for setting up ERL power to meet demand of coming days. ther advancement of activities, a joint 2nd unit. We hope to start the project For this, we have planned to take a proj- working group comprising with both from July 2021 for next 5 year. This year ect for strengthening capacity of the BPC sides’ representatives and experts, will be we will invite bid for EPC Contractor. The Officials. We are also expanding our constituted. The first action of the Joint capacity of ERL 2nd unit would be 30 organogram with some new set up such Working Group will be conducting a fea- lakh tonnes. We are expecting to start as R&D wing. We also have given instruc- sibility study. construction in 2022 after selection of tion to all our subsidiaries to restructure We got five unsolicited proposals. Most the contractor. their manpower as per demand. EP

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