Vigorous gas exploration crucial

The world is passing through a period when economic activities and overall development are being impacted by the war in Europe. It’s now widely acknowledged that if this war had not involved the major powers, the fall out would have been marginal. However, with a stark division in the world, embargoes plus supply chain impediments, most nations are facing difficulties.

The war has triggered a fuel shortage and Bangladesh is already going through energy crisis precipitated by the European conflagration.

Against such a grim global scenario, the challenge will be to keep the economy running and making all-out effort to keep the GDP at a healthy level. Naturally, for industries to operate at full capacity, gas will be needed; as per a TBP report, gas production at the Bibiyana field would fall by 50 per cent in five to six years.

At a seminar titled “Energy Security for Sustainable Development” organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), speakers called for immediate gas exploration in the Bay of Bengal to stave off possible energy needs in the future and to maintain a steady supply of energy to the industries.

Experts have repeatedly stated that low cost fuel supply is essential to maintain steady operation of industries – a key element to sustain the development momentum of the country.

Myanmar has been exploring off shore gas which Bangladesh can follow.

The world economy is already on a precarious platform with several developing nations on the verge of implosion. The Sri Lankan debacle should work as an example as to what may happen due to complacency and lack of strategic planning.

Although Bangladesh is exactly not on the path to economic meltdown, prior planning will help to fortify the economy.

One other aspect to look into is importing of LNG at a low cost from Qatar and Australia, two of the largest LNG manufacturing countries.

For off shore gas exploration, the immediate step would be to invite international drilling companies to carry out initial exploration. There were some explorations done in deep sea in the past although now this needs to be pursued with more intent.

Relevant to mention, two PSCs (Production Sharing Contracts) were signed with ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL) for drilling at blocks SS-4 and SS-9 during the Bangladesh Offshore Bidding Round of 2012. Bapex has been designated as a stakeholder with a 10 per cent interest in these blocks by the Bangladesh government. The ONGC partnership has completed a 5,500-line-kilometer two-dimensional or 2D seismic survey in the block since the contract was signed.

In Bangladesh's marine border, it discovered 25 shallow and deep-sea blocks. Only three blocks for gas and oil exploration have been given thus far. In March 2017, a PSC for deep-sea block DS-12 was signed with South Korean oil and gas company POSCO DAEWOO Corporation under the "Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010."

However, due to a disagreement over gas costs, the company left Bangladesh without completing the project. Meanwhile, the country has discovered 28 gas sources on land, 22 of which are operational and provide two-thirds of the country's total gas consumption.

Recently the biggest infrastructure of the country, the Padma Bridge was opened with the hope that the structure would provide a much needed catalyst for business development in the south-east part of the country. However, the bridge will only trigger an economic boom when the economic zones in the southern part of the country get uninterrupted supply of energy. Keeping this in mind, the government may look into more international partnerships to explore off shore gas and woo drilling companies which had worked here in the past.