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Monday, 01 December, 2008, 22:10 GMT | more >>

Dhaka 'seeking $8bn energy investment'



By Upstream staff 

Bangladesh will reportedly need about $8 billion in investment in the energy sector to meet growing demand up to the year 2025.

"Bangladesh will need about 24 trillion cubic feet of additional gas to attain and maintain a 7% economic growth, and nearly $8 billion in investment to find and develop the required reserves," said M Tamim, a special aide to the head of the interim government responsible for the ministry of power, energy and mineral resources, has said.

Bangladesh, with 13.54 Tcf of proven and recoverable gas reserves, is facing shortages of at least 100 million cubic feet of gas a day as the country can supply up to 1.7 Bcf of gas against daily demand of 1.8 Bcf, officials said.

"The gap between demand and supply will further widen after five years if we do not find and develop new gas fields," Tamim said in a presentation at an energy sector meeting, attended by 130 representatives of international energy companies, Reuters reported..

Bangladesh issued international tenders for offshore bidding last month and so far 26 companies have bought tender documents, said Muhammad Muqtadir Ali, a director of the state-run Bangladesh Oil, Gas & Mineral Corporation, or Petrobangla.

"We expect more participation of the international oil companies as the tender document submission period will continue till the first week of May," Muqtadir said.

Over the last decade, gas consumption has been rising at an average rate of 8% per year and major consumers of gas are power plants and fertiliser factories, Tamim said.

Bangladesh divided its offshore gas fields into 28 blocks including eight shallow- and 20 deep-water blocks, Jalal Ahmed, chairman of the Petrobangla, said.

"The international oil companies will be allowed nine years for exploration in deep sea blocks and eight years for shallow sea blocks," Jalal said.

Muqtadir said Bangladesh wanted to begin development work in the offshore blocks by next winter.

US supermajor Chevron , UK player Cairn, Irish company Tullow, French giant Total SA and Canada based Niko are involved in Bangladesh's energy business along with a number of small foreign companies, the official said.


Monday, 31 March, 2008, 00:57 GMT  | last updated: Monday, 31 March, 2008, 00:57 GMT

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