Energy Shortage and its facing plan of Bangladesh Government

Petrobangla started extensive exploration and drilling activities to increase gas reserves, given that natural gas was used to produce commercial energy in Bangladesh. The government predicts that currently known natural gas reserves would be depleted by 2015 at current demand; in 2009, demand exceed supply which means frequent energy shortage. A total of 23 gas field had been discovered in Bangladesh and the estimated reserves were about 200 plus billion cubic meters.

Under Petrobangla five companies carried out gas transmission and distribution in Bangladesh. The companies constructed new distribution pipeline to the total pipeline network of the country. The companies provided gas to power stations of Bangladesh Power development Board, private power stations, and fertilizer factories.

Though Cairn energy plc of the United Kingdom announced that the Sangu Plant in Chittagong able to produce 4.8 million cubic meters per day, but by December 2008, production had decreased to 1.4 million cubic meters per day.

The government of Bangladesh awarded three offshore blocks in the Bay of Bengal to two international companies, which would then be awarded production-sharing contracts for hydrocarbon exploration with a provision to export ConocoPhillips Co. of the United States, and one block was awarded to Tullow Oil plc of Ireland.

Tullow Oil also had operations in Bangladesh’s offshore interest. In October, the Bangora-3 well was added into the 120 million cubic feet per day from 100 million cubic feet per day. In September, Chevron Corp. discovered gas in its Bibiyana of 6.6 trillion cubic feet of gas, which was an increase from the previously estimated 3.4 trillion cubic feet of gas.

In future, cement, coal, and crushed stone demand will be increase because of government planning of building bridges and other improvements to the country’s infrastructure. Cement production capacity could increase as local producers continue to improve their facility’s annual capacity.

The government is expected to continue to set up joint ventures with worldwide companies, mainly for exploration in the mineral fuels sector. Once the ultimate review of the coal policy fulfilled and the new policy is in place, the government of Bangladesh would be able to move toward the goal of having the entire country with a steady power supply by 2020.