Gas
55 companies invited in global bid for Bangladesh offshore exploration; Energy Advisor optimistic
Prime Minister’s Energy Advisor Dr Tawfiq-e-Elahi Chowdhury has said that the international bidding for offshore oil and gas exploration will draw a huge response.
“This round, we have introduced some new aspects like linking gas price with Brent and per year cost recovery at highest 75 percent to make the bidding more attractive,” he told reporters at a press conference at Petrobangla headquarters in Dhaka on Monday.
The Energy and Mineral Resources Division organised the press conference to brief about the “Oil and Natural Gas Exploration Under Bangladesh Offshore Bidding Round 2024”, for which Petrobangla invited international oil and gas companies (IOCs).
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State Minister for Power, Energy and Mineral Resources Nasrul Hamid, Energy Secretary Md Nurul Alam and Petrobangla chairman Zanendra Nath Sarker also addressed the event.
The tender notice was published in local newspapers and websites of concerned government entities including Bangladeshi missions abroad on Sunday giving six months’ time until September 9, 2024 for submission of the bids.
As per the floated tender, a total of 24 offshore blocks — of which nine are shallow blocks — and 15 deep sea blocks are available for the bidding round.
The nine shallow sea blocks are SS-01, 02, 03, 05, 06, 07, 08, 10 and 11) and 15 deep sea blocks are DS-08, 09, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21 and 22.
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The bidder, singly or in association with other companies, can bid for one or more blocks.
Contracts will be signed with the successful bidders in line with the Bangladesh Offshore Model Production Sharing Contract 2023, said the tender.
Tawfiq Elahi Chowdhury informed that so far, the bidding invitation was sent to 55 IOCs who have contacted the government as potential bidders.
He, however, averted a question on the geopolitics that might appear to be a factor in the participation of the IOCs in the bidding round.
Nasrul Hamid said it’s an open bidding and any company eligible can bid for any block. He said a pre-bid meeting will be arranged after Ramadan for the interested bidders.
Read more: Petrobangla invites offshore bidding for oil, gas exploration
Petrobangla invites offshore bidding for oil, gas exploration
Petrobangla, the oil, gas and mineral corporation, has floated the offshore bidding, inviting international oil and gas companies to explore in the Bangladesh maritime area in the Bay of Bengal
The tender, named “Oil and Natural Gas Exploration Under Bangladesh Offshore Bidding Round 2024”, was published in local newspapers and websites of concerned government entities including Bangladeshi missions abroad on Sunday giving six months time until September 9, 2024 for submission of the bids.
As per the floated tender, a total of 24 offshore blocks — of which nine are shallow blocks — and 15 deep sea blocks are available for the bidding round.
The nine shallow sea blocks are SS-01, 02, 03, 05, 06, 07, 08, 10 and 11) and 15 deep sea blocks are DS-08, 09, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21 and 22.
The bidder, singly or in association with other companies, can bid for one or more blocks.
Contracts will be signed with the successful bidders in line with the Bangladesh Offshore Model Production Sharing Contract 2023, said the tender.
Read more Cabinet body approves draft contract to invite int’l bidding for offshore gas exploration
The features of the proposed contract include full repatriation of profit, no signature bonus or royalty, uncapped attractive gas price linked with international marker, oil price to be determined on the basis of the fair market value prevailing in South and Southeast Asia.
It entails no duty for equipment and machinery imported for petroleum operations while contractor's corporate income tax liability will be borne by Petrobangla, and bank guarantee for performance of the minimum exploration program.
There will be provision for assignment of interest and share-transfer and 100 percent cost recovery with a yearly cap of 75 percent.
The contractor must have a mandatory work program consisting of 2D seismic
survey and mandatory purchase of available
2D multi-client seismic data against bidded blocks to get relief from mandatory work obligations proportionately.
They will have minimum work obligation in each of the exploration periods while biddable work program commitment over and above the mandatory program.
There will be petroleum profit sharing on the basis of R-factor with biddable upper and lower limits and option to sell contractor's share of natural gas in the domestic market to a third party, at a negotiated price, subject to Petrobangla's right of first refusal.
Read more: New PSC: Petrobangla awaits final nods to invite int’l bidding for offshore blocks
The bidder must ensure carried stake of 10 percent for state-owned Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) for both shallow and deep sea blocks.
The bidders’ qualification criteria include — individual or in case of joint venture at least one member — offshore daily production of at least 15,000 barrel of oil or 150 mmsc of gas. Bidders must have at least one global experience (other than home country) in the oil and gas exploration and production.
The Information Package will be available at a cost of US$ 300 or equivalent Bangladeshi taka to the interested bidders/companies.
To enable companies to assess the geological prospects of the blocks on offer, Promotional and Data Packages are available on payment basis. Promotional Packages contain Bidding Document, sample seismic sections, gravity, magnetic, geological maps. Companies are required to purchase the Promotional Package in order to qualify for bidding, said the tender.
The purchase price of the Promotional Package is US$ 10,000 or equivalent Bangladeshi taka. Purchase of Data Sales Package is optional. Several Data Sales Packages are available at different prices.
Companies interested in bidding and purchase of Promotional and Data Sales Packages may contact the Director, Production Sharing Contract, Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) Petrocentre, 3 Karan Bazar, Dhaka-1215, said the bidding tender.
Read more: Action against officials of Petrobangla companies if fail to achieve target: Nasrul
LPG price hiked: Consumers to see increment from today
In an update from the Bangladesh Energy Regulatory Commission (BERC), the price of liquefied petroleum gas (LPG) has been adjusted upwards by Tk 0.66, setting the new rate at Tk 123.52 per kg, up from the previous Tk 122.86. This price change is effective from 6 pm on Sunday (March 03, 2024), indicating a slight increase in household and commercial expenses.
BERC, at a press briefing today, detailed the adjustment, noting that the price for a standard 12 kg LPG cylinder will now be Tk 1482, inclusive of VAT, marking an increase from the previous Tk 1474. This adjustment follows a rational scale across various LPG cylinder sizes, ranging from 5.5 kg to 45 kg, addressing the need for a proportional price revision across different consumer segments.
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Furthermore, the price for “auto gas,” the LPG variant used in motor vehicles, has also seen a revision, now priced at Tk 68.05 per litre, including VAT, a slight increase from Tk 67.68. This adjustment reflects the broader impact of LPG price changes on transportation and related costs.
Notably, LPG prices marketed by the state-owned LP Gas Company will remain unchanged. This exception is attributed to its local production and the company’s minimal market share, which is less than 5 percent.
The decision to adjust LPG prices comes in the wake of rising costs in the international market, specifically tied to the increase in the Saudi CP (contract price), which serves as a benchmark for local operators importing LPG primarily from the Middle East.
Read more: LPG price hiked again; 12 kg cylinder to cost Tk 1433
Gas supply to remain off at these areas in Narayanganj, Dhaka and Munshiganj districts tomorrow
Gas supply will remain suspended in many areas of Narayanganj, and parts of Dhaka and Munshiganj districts for 16 hours — from 8 am on Monday (March 04, 2024) to 12 am — for emergency gas pipeline repair work.
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A public notice from Titas Gas Transmission and Distribution Company Limited said the areas where gas supply will remain off include Godnail, Enayetnagar, Bau Bazar, Lucky Bazar, Hajiganj, Wabdapul, Qayyumpur, Fatulla, Sistabpur, Jail Khana Road, Post Office Road from Hajiganj junction to Shibu Market, Panchbati, Maizdair, Izdair, Chashara, Khanpur, Killarpool, Talla, Kutubail, Dharmaganj, Takkarmath, Pagla, Chitashal, Delpara, Jalkuri, Nayamati, Dapa Idrakpur, Bhuigarh, Qutubpur Union, Dhaka Match, Senpur, Moktarpur, Narayanganj BSCIC Area, Kashipur Union to Moktarpur via Panchabati area, Shimgaon, Siddhirganj, Adamji, Sahebpara, Mizmiji to Chittagong Road, and Siddhirganj.
The adjoining areas under Fatulla Police Station, Munshiganj and Narayanganj city may experience disruption or low pressure in gas supply, said Titas, regretting temporary inconveniences during the period.
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Industries in Dhaka, Gazipur, N'ganj still reeling from acute gas crisis despite Titas claims of improvement
Industries in Dhaka, Gazipur and Narayanganj continue to be afflicted by an acute gas crisis, even though Titas Gas Transmission and Distribution Company, the state-owned distributor of natural gas, claims the situation has improved.
As reported in the media previously, garments and textiles firms in the industrial belt of these central districts have been suffering from an acute gas crisis for the last few months.
“The factories are in dire straits,” a top top-level manager of a group of textile factories in Gazipur told UNB.
Most of the industries in Gazipur do not get adequate supply of gas during their operational periods, the most crucial hours during which their machines need to be running. Inadequate supply manifests in the form of low pressure gas flow, he added.
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Low pressure gas flow is akin to low voltage electricity - many appliances won't run, even though an electric charge is present.
The textiles group official said that due to the lack of gas supply, production in various factories is being disrupted and they are on the verge of shutting down.
In the ongoing gas crisis, important machines like generators and broilers in the dyeing section of the factories are not being run. This has been posing a great risk for the industries to continue their production and pushing them towards huge financial losses.
“Many industries would not be able to pay the salaries and festival bonuses during the coming Eid if the situation does not improve,” said an industry owner.
Industry insiders said there are more than 300 factories in Kaliakoir and other areas in Gazipur.
All these industries have been suffering from the nagging gas crisis and some of them have already suspended their productions.
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Each of the industries has more than 1000 workers. But following the gas crisis, they have to reduce their production target while some of them use CNG at a higher cost to continue their operations.
A similar situation is prevailing in the Mirpur, Tongi and Narayanganj areas, said Mohammad Hatem, Executive President, of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
He said that despite increasing the price, the government is not able to provide adequate gas.
“Production in garment factories has come down to half due to non-availability of gas. Many buyers meanwhile are pushing for air shipments as the normal schedule for shipments has failed in keeping the commitment,” he said adding, some buyers are asking for discounts on the rates.
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“Some customers are upset and cancel the order in such a situation,” he noted.
Recently the Bangladesh Chamber of Industries (BCI) has also alleged that no industry in the country is able to run at its full potential due to the gas crisis.
A Bangladesh Chamber Of Industries delegation, led by its president Anwar-ul Alam Chowdhury (Parvez), raised the allegation when it met Industries Minister Nurul Majid Mahmud Humayun at his ministry office.
The lone chamber for industries said the prices of electricity and gas were increased on the pretext of increasing prices on the international market in the hope that the government would ensure their continuous supply.
“But despite the declining trend of energy prices in the international market, it is being heard that the prices of electricity and gas will be increased again,” BCI said in a statement.
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It demands for a sustainable solution to the problem. “If a long term plan is given to the industrial sector in terms of power and gas supply, it can move forward accordingly."
Titas Gas general manager Arpana Islam admitted the gas crisis. But she claimed that the situation has improved to some extent recently following measures to increase the gas supply.
She advised to talk to Petrobangla when asked whether there is any possibility in near future to further improve the gas supply situation.
Petrobangla official statistics reveal that in the last one month the total gas supply across the country has increased by just 100 million cubic feet per day (MMCFD) or so, leaving a deficit between production and supply of about 1500 mmcfd.
The Petrobangla data shows that on February 16 it produced 2671 mmcfd gas including its import from abroad against a demand for more than 4000 mmcfd.
The TItas Gas data also shows that about 30 power plants now remained out of operation due to gas shortage.
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More gas likely to be found in Sylhet’s Kailashtila field: Nasrul
Bangladesh's State Minister for Power, Energy, and Minerals Resources Nasrul Hamid hoped that 1.6 TCF (trillion cubic feet) more gas will be found at the Kailashtila gas field in Golapganj upazila of Sylhet.
It will be confirmed once the drilling is completed within the next four months, he said.
The state minister made the remarks after visiting the Kailashtila well No 8 on Saturday (February 17, 2024).
Nasrul said the Kailashtila field previously had 3 TCF reserves and more gas reserve will be found once the current search wells are drilled.
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“We are waiting for you to take initiative. The ministry does not undertake any project. We want everyone to show their capability. Sylhet gas field has moved forward, taking on more projects. We want others to come forward as well, ” he told officials.
Mizanur Rahman, managing director of Sylhet Gas Fields Limited, said seven wells were drilled in Kailashtila earlier, and gas was found in every well.
“It is expected to find more than 1 TCF of gas after digging at 3500 meters of the well,” he said.
The drilling of the Kailashtila-8 well started on January 11 this year. The work is expected to be completed in 120 days. State-owned Bangladesh Petroleum Exploration and Production Company (BAPEX) is digging the well.
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Besides, there is an existing transmission only one and a half kilometers away and a usable process plant at a distance of two and a half kilometers. Although gas is surplus in many areas, including Bhola, and Zakiganj, it cannot be used as there is no transmission.
Action against officials of Petrobangla companies if fail to achieve target: Nasrul
Bangladesh's State Minister for Power, Energy and Mineral Resource Nasrul Hamid has said that each of the companies of the Petrobangla will be given target to drill wells in the gas fields for hydrocarbon exploration and if they fail, the officials concerned will be removed from their posts.
“Nobody will be speared and no persuasion will be accepted against any failure”, he told a seminar titled: “Gas Demand-Supply Scenario; Scope of Seismic Survey and Enhancement of Drilling Activities to Expedite Hydrocarbon Production” organised by Petrobangla at its auditorium in the city on Thursday (February 15, 2024).
Expressing frustration over the activities of the Petrobangla, he said that there is huge deficiency in the organisation and its subordinate bodies to work as a team.
“They don’t work in a coordinated manner. As a result, sometimes gas is found in a well, but processing plant remains unprepared to supply the gas to the national grid,” he said.
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“Sometimes it takes 4 years to get gas supply from a well to the national grid,” he added.
He said Bangladesh Power Development Board (BPDB) and other entities in power sector have been successful in achieving the goal of 100 percent electricity access as they worked as a team.
The seminar, with Petrobangla chairman Zanendra Nath Sarker in the chair, was also addressed by Energy Secretary Md Nurul Alam.
Bakhrabad Gas Distribution Company’s Managing Director Anwarul Islam and Petrobangla’s general manager Meherul Hasan made presentation on the topic of the seminar.
Nasrul Hamid said the Petrobangla planned to drill 48 wells to produce 500 million cubic feet per day (mmcfd) while the country’s demand will go up by 2000 mmcfd.
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“We’re all looking at Petrobangla to see effective results of its plan…, there is huge prospects in the gas sector,” he added.
He said the country has many inefficient captive power plants which efficiency is 20 percent when some new power plants installed with 62 percent efficiency.
“If we can divert gas to those efficient new power plants, power production cost will come down by 70 percent,” he noted.
In the presentation the Petrobangla officials showed that it has planned to drill 100 wells across the country from which 1500 mmcfd gas will be produced by 2027 when gas demand will go up to 6000 mmcfd.
Read more: Nasrul Hamid seeks ADB's help to create regional power market
Housewife among 3 burnt in Dhaka’s Jurain
Three people including a housewife sustained burn injuries in a fire from a gas stove in Dhaka’s Jurain last night (February 10, 2024).
The burnt Bina Rani Das, 35, her brother-in-laws (cousins of her husband) Banomali Das, 30, and Topu Das, 32, are now undergoing treatment at the Burn Unit of Dhaka Medical College Hospital (DMCH).
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According to the family, a fire suddenly broke out from the gas stove when Bina was cooking around 6 pm.
Hearing her screams, Banomali and Topu rushed to the kitchen and sustained burn injuries while trying to save her by dousing the flame.
Md Bachhu Miah, in-charge of the DMCH police outpost, confirmed the matter saying that Bina received 50 percent burn injuries while Banomli had 20 percent burns and Topu sustained minor injuries.
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BNP denounces move to double monthly rent for prepaid gas meters
The BNP on Wednesday denounced the government's decision to double the charge for residential prepaid gas meters, saying it is an unjustified and anti-people move.
“The rent of the prepaid meter has been doubled overnight from Tk 100 to Tk 200. It’s said that this decision has been taken by adjusting the cost of running and maintaining the meter. It’s an illogical move,” said BNP Senior Joint Secretary General Ruhul Kabir Rizvi.
He made the remarks while addressing a press briefing at BNP’s Nayapaltan central office.
The BNP leader said the charge has been raised at a time when the gas supply situation at the residential level has already seriously deteriorated.
He said there is no gas supply in the houses most of the time, day and night, but the 'illegal government' is collecting money using various tactics from the gas users.
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“Doubling the meter charge without ensuring gas supply and putting the common people in misery (by suddenly raising the charge) is a manifestation of the government’s anti-people attitude. I, on behalf of BNP, strongly protest and condemn this anti-people decision.”
The state-owned gas distribution companies recently hiked the prepaid meter rent to Tk 200 from 100 without any prior notice.
In a statement on Monday, Titas Gas Transmission and Distribution Company Limited said the meter charge was increased as per the government’s decision to adjust the cost of the installation and maintenance of the meter.
Rizvi said the government has been plundering public money as it has no accountability to the people - since it was formed without a mandate from the voters.
“They (govt) know they won’t have to be accountable to people and they won’t have to go to people in another election or any election as they subdue the people with guns and the state’s all apparatus. So, they can take anti-people policies and implement them as per their whims,” he observed.
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He alleged that the government has punished people by increasing the charge for residential prepaid gas meters for boycotting the 12th parliament election and silently witnessing the government's election ‘circus’ on 7 January.
Voicing concern that the dollar crisis has already badly affected export growth, the BNP leader opposed the government’s decisions not to provide cash incentives to the ready-made garments and textiles sector.
“The orders for RMG products from buyers have already halved. Cash incentives for leather, jute products, and agro-processing products have also been reduced a lot. So, the export of all these products will decrease drastically,” he said.
The BNP leader said the government is cutting funds from the export sectors only to continue the looting in the name of so-called development and mega projects.
He also slammed Foreign Minister Hasan Mahmud for downplaying an open letter of 242 global leaders expressing alarm over the "continuous judicial harassment and potential jailing" of Nobel Peace Prize laureate Muhammad Yunus.
He also criticised the Awami League general secretary Obaidul Quader for calling the TIB report on the Corruption Perception Index (CPI) politically motivated.
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"Obaidul Quader yesterday (Wednesday) said corruption exists all over the world but only Bangladesh is vilified. We can say corruption may exist more or less all over the world, but we don’t know whether the Awami-styled corruption stain exists anywhere else in the world,” the BNP leader said.
Gas supply to Ctg, elsewhere starts improving as LNG terminal resumes production
Gas supply to Chattagram and elsewhere has started to improve after a floating LNG terminal in Moheshkhali resumed production after its 45-day scheduled maintenance programme.
“Excelerate Energy’s FSRU started production after scheduled maintenance today. Now it has been supplying 230 million cubic feet of gas per day (mmcfd) and hopefully the supply will reach 500 mmcfd soon,” said a top official of the Rupantarita Prakritik Gas Company Limited (RPGCL).
The RPGCL, a subsidiary of state-owned Petrobangla, has been responsible to import LNG from abroad and receive re-gasification service from the existing two LNG terminals in Moheshkhali, one set up by Summit Group and another by US-based Excelerate Energy.
Each LNG terminal has a capacity to supply 500 mmcfd gas to the national gas network from which a major portion is supplied to Chattagram .
Read: Energy Division regrets inconvenience from gas crisis in Chattagram, elsewhere
The Excelerate Energy’s FSRU went on a 45-day maintenance programme suspending supply of gas to the national gas grid while the Summit’s FSRU experienced a technical fault halting gas supply to the national gas network, leading to a severe gas crisis in Chattagram and elsewhere.
Many areas in Dhaka, Narayanganj and Gazipur experienced extreme gas crises or low pressure problems.
The RPGCL official, however, informed that Summit’s FSRU also resumed production to a very low scale and it is providing a supply of 130 mmcfd against its capacity of 500 mmcfd.
He noted that the gas shortage problem is unlikely to be fully resolved as the Summit’s FSRU also has a schedule to start maintenance programme within 3-4 days.
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“We think the situation will improve to some extent, but not fully”, he told UNB.
The Energy Division on Friday expressed regrets for the inconvenience caused to consumers over the gas crisis in Chattogram and elsewhere in the country due to the suspension of the LNG supply from FSRU in Moheshkhali following a technical fault there.
In a press release, the Energy and Mineral Resources Division said that due to a technical fault at a Moheshkhali LNG FSRU, gas supply to Chattogram and other areas of the country remained suspended since early morning on Friday.
Read more: Acute gas crisis hits Chattogram city residents hard