July 5, 2024
DHAKA – The power, energy and mineral resources ministry has prepared a proposal focusing on Prime Minister Sheikh Hasina’s upcoming visit to Beijing suggesting seven projects worth $1 billion that could be financed by China.
Replying to a query at a press conference in Bangladesh Secretariat yesterday, State Minister Nasrul Hamid said they sent the proposal for finalisation by the government.
The prime minister is scheduled to visit China between July 8-11. The foreign ministry has asked ministries to submit proposals on projects that could be initiated through funding from China.
Among the seven projects, six are related to the development of power transmission facilities in different areas of the country, including underground ones, said Nasrul Hamid.
“We have prioritised a parallel gas transmission project under G2G (government to government arrangement) which will transmit gas from two ‘to be built’ FSRUs (floating storage and regasification units) in Moheshkhali,” he said.
He also said the government has been working on ensuring uninterrupted gas supply from 2027.
“In 2027, the gas demand will be around 6,000 mmcfd (million cubic feet a day) in the industry and power sectors, which is now 3,500 mmcfd,” said Hamid.
“Two more FSRUs will be established by then to import more gas. We have our 46 gas wells and have drastic plans to explore another 100 wells. Gas will come from the shallow sea by this time as well,” he said.
The ministry has applied to invest in gas well drilling, he said, adding that around $2.5 to $3 billion would be required for gas exploration.
“It is profitable for us. If we spend around $20 million in a well, we will find gas worth $400 million at least,” he said.
Petrobangla is now going for deep drilling which also requires a huge amount of money, he said.
“Some will be managed by updating profit sharing contracts with global oil companies, some would come from BOT (build-operate-transfer arrangements),” said Hamid.
About the offshore exploration, he said till date, 17 companies showed interest while six have bought the survey data.
The deadline for the submission of their proposalsmay be extended as they will need more time to study the data, he said.
The last date for the submission of bids for offshore drilling was September 9.
ELECTRICITY PRICE ADJUSTMENT
Nasrul Hamid yesterday hinted at a further rise in electricity prices this year.
He said the power distribution companies are incurring losses due to fluctuations in the exchange rate between the US dollar and taka.
“We had been calculating the dollar at Tk 85 since the previous fiscal year. It was then set at Tk 110 and is currently at Tk 117,” he said, adding that, “We will need to adjust the price.”
According to him, there are plans to change the price of electricity three or four times annually in order to eliminate subsidies.
“We have already adjusted the price twice. We have a plan … if the government allows,” added Hamid.
He hoped for the power supplies to reach normalcy within a couple of weeks.
“During Cyclone Remal, one of our two FSRUs was damaged. It is under maintenance now and will start production on July 14-15,” the minister added.