Rejoinder, our reply

The Ministry of Power, Energy and Mineral Resources has sent a rejoinder to a Daily Star report headlined "Energy Sector Review: Short-term achievements; hope for long-term gains" which was published on December 25. The rejoinder was signed by the ministry's information officer. The following is the entire rejoinder followed by our reply.
Our attention has been drawn to the news item published in your esteemed daily on 25 December 2011 captioned "Energy Sector Review: Short-term achievements; hope for long-term gains". We think that the observations on the progress made in the natural gas and coal production in the last three years as well as prognosis for the next few years are not based on facts and devoid of happenings on the ground. We would deeply appreciate if you take steps to publish the following rejoinder to the report mentioned earlier.
To put the current gas situation in right perspective, it should be noted that making use of the natural gas as a fuel source requires a number of steps starting from field survey to exploration and development of wells to laying of pipelines for evacuation. This process naturally needs a minimum of 2/3 years time. Moreover, natural gas prospecting and exploration and development activities along with provisions for evacuation should be done on a continuous basis to increase reserves of natural gas so that no sudden imbalance in the demand for and supply of natural gas occurs. While in the last 3 years 12 exploratory/development drilling was done by Bapex, only 4 drillings were done in the 7 years prior to 2009 by Bapex.
The government in the last three years has taken a number of steps to augment gas production and some of the outcomes are there for all to see. Activities have been undertaken on a number of fronts to improve the supply situation:
* Mechanical interventions;
* Work-over of wells to resume production in abandoned wells;
* 3D surveys in Rasidpur, Kailashtila, Sylhet, Titas and Bakhrabad fields which are expected to significantly increase gas reserve;
* New drilling programmes -- both exploratory and development;
* Construction of new pipelines to overcome the pipeline capacity constraints;
* Procurement of new drilling and work-over rigs for Bapex along with a strengthened human resource base;
As a result of these steps in the energy sector, gas production has increased from 1750mmcfd in January 2009 to 2065mmcfd in December 2011, a net increase of 315mmcfd in last three years. Bapex has identified a new structure in Sundulpur from where about 20mmcfd gas will start to flow soon. A new development well in Salda has already added about 20mmcfd to the national grid. Another new well at Fenchuganj-Akhaura structure is expected to add another 50 million cubic feet of gas per day to the system very soon. Drilling rigs of Bapex have started moving to three new prospects in Kapasia, Srikail and Sunamganj-Netrokona (Sunetra) to hit new gas reserves. Altogether by 2015 programmes have been taken for drilling of 54 new wells (exploratory and development) by Bapex, BGFCL, and IOC's. It is expected that about 2000mmcfd additional volume of gas will be available in the country within this period. A new compressor station in Muchai will be in operation from April 2012 that will add 60/70mmcfd additional gas into the system. Two more compressor stations will come into operation in 2013. These three compressors in combination will add an additional amount of 250mmcfd gas in 2013. Three cross-country pipelines are under construction which will help to evacuate this additional 2000mmcfd from different fields.
While it is desirable that we avoid extreme dependence on a single source of fuel, i.e. natural gas, for power generation, commitment for supply of 350mmcfd gas to new gas-based power plants has already been made based on the expected new production of natural gas in the country by both Bapex and international companies. These new power plants are expected to produce about 1600 MW of electricity.
The observation that the current government has decided not to develop our own coal fields is not true. Given the unique geological, environmental, underground aquifer and socio-economic conditions that surround coal fields in Bangladesh it is highly imperative that informed decisions are taken before this valuable resource is extracted to the benefit of all stakeholders. In particular, detailed studies are needed to identify appropriate mining methods for different coal fields depending on the geological, socio-economic, technological, environmental and other related facts. To this end, a high-powered technical committee is working and soon they will come up with appropriate recommendations. Based on the suggestion of the technical committee government will finalise a coal policy for the country.
OUR REPLY:
Our report gave out a summary of Bapex's activities which covered various detailed points made in the rejoinder. The overview report also mentioned that Petrobangla and its affiliates have added a small amount of gas. But there is still a supply shortfall of 500 million cubic feet per day (mmcfd) gas. This remains as a contrast to the achievements in the power sector.
The rejoinder claimed that between January 2009 and December 2011, there was a net increase of 315 mmcfd gas because of the government's initiatives. But the fact is, out of this increase, 250 mmcfd was added by December 2009 and it was possible because of initiatives taken during the caretaker government. The rejoinder itself mentions that to get the results of an initiative in this sector, it takes two to three years.
The rejoinder talked about gas compressors to be installed within the next two years. The fact is, the installation of these compressors was delayed due to decisions taken by Petrobangla. These would have come into operation by early next year, if Petrobangla had not arbitrarily cancelled a tender in early 2009.
When the government came in power, it was initially enthusiastic about developing the coal resources. Three years after, as the rejoinder itself mentions the government still feels the need for "further detailed studies".
The rejoinder only adds some details of information already mentioned in our report, and does not contradict it in any substantial way.