Geographically, Bangladesh occupies a bigger part of the Bengal basin and the country is roofed by Tertiary folded sedimentary rocks (12%) in the north, north eastern and eastern parts; uplifted Pleistocene residuum (8%) in the north western, mid northern and eastern parts; and Holocene deposits (80%) consisting of unconsolidated sand, silt and clay. The oldest exposed rock is the Tura Sandstone of Palaeocene age but older rocks like Mesozoic, Palaeozoic amid Precambrian basement have been encountered in the drill holes in the north western part of the country. The imperative mineral deposits of Bangladesh are natural gas, coal, limestone, hard rock, gravel, boulder, glass sand, construction sand, white clay, brick clay, peat, and beach sand heavy minerals because of its different biological environment. Tertiary Barailshales stirring within the oil and gas windows have generated natural gas and oil found in BangladeshSustainable mineral resources are still playing, a vital role in shaping the modern civilized industrial world. Modern urbanization, industrialization, transportation and communication systems are the achievements of worldwide sustainable mineral resource development and their proper utilization in various sectors. Richness in natural resource is the key indicator of socio-economic infrastructure for any country all over the world. Strong technological know how, its ability to explore and exploit mineral resources, and its wisdom in utilizing those resources properly in the development activities of the nation. Developing world is generally far behind compared with developed world in the sense of development activities. Bangladesh is a small country; it has a number of mineral resources such as natural gas, oil, coal, hard rock, limestone, white clay, glass sand and mineral sand. At present, natural gas is the only mineral commodity significantly contributing to the national economy. Majority of the country’s energy needs are met by gas that is about 90%. Energy is the key ingredient for socio-economic development of a country and economic development depends on the adequate energy supply that leads a country self reliant. Ministry of Power, Energy and Mineral Resources divided into two departments namely Energy and Mineral Resources Department and Power Department. Energy and Mineral Resources Department that entrusted to make all policies connected to natural gas, liquid petroleum and mineral resources. EMRD is responsible to create policies and administrative control over Geological Survey of Bangladesh, Petrobangla, Bureau of Mineral Development and Department of Explosives. Hydrocarbon Unit and Bangladesh petroleum Institute is controlled and watch over by EMRD.
Present scenario of Mineral Resource in Bangladesh: Natural Gas:Natural gas has a vital role to play in our socioeconomic development as a rudimentary source of energy. Its widespread use in power, fertilizer, industry and household has made it the energy of choice in Bangladesh that accounts for about 73% commercial energy of the country. It is pretty cheaper than other conventional sources of energy that we import from abroad. The use of indigenous natural gas has, indeed, helped to accelerate the pace of economic development and improve the quality of our life in the country. So far in Bangladesh 25 gas fields have been discovered with the rate of success ratio is 3.1:1 of which two of the gas fields are located in offshore area. Gas is produced from 20 gas fields (79 gas wells), 15 are state-owned and the remaining operated by international oil companies. Currently, Chevron contributes more than half of Bangladesh's total gas production. Bangladesh gas sector started its journey in early 60s, but its rapid expansion and integration stared to accelerate in 70s spurred by the raising oil price. Total recoverable proven and probable gas reserve from discovered 25 gas fields has been estimated as 27.04 TCF out of which estimated proven recoverable reserve (P1) is 20.70 TCF and recoverable probable reserve is 6.39 TCF. Up to December 2013 as much as 11.92 TCF gas has been produced leaving only 15.12 TCF recoverable gas. Currently 19 gas fields are in production and out of 104 wells located in 19 gas fields, 84 are in stream. A total of 600.86 billion cubic gas (BCF) was produced in FY 2007-2008, 653.57 BCF in 2008-2009, 703 BCF in 2009-2010, 708.92 BCF in 2010-11, 743.57 BCF in 2011-2012 and 805.67 BCF in 2012-13. The demand for gas has already surpassed 2700 MMCF per day whereas the peak supply of gas is nearly 2287 MMCF leaving shortfall of 413 MMCF per day. Against this backdrop, Petrobangla has drown time bound program to boost up gas production in the coming days, and with this end of view, short term, mid term and long term (up to 2015) have been taken up for enhancing gas production to and additional amount of 1560 MMCFD with in the year 2015 as envisaged in the road map. Meanwhile, a volume of about 593 MMCFD of gas added to the natural grid.Average daily gas production capacity is about 2000 mmcfd of which International Oil Companies (IOC) produce 1040 mmcfd and State Owned Companies (SOC) produce 960 mmcfd. The gas production recorded on 24 February, 2010 was 1996.7 MMCFD. At present the daily approximate projected gas demand throughout the country is 2500 MMCFD. The demand is increasing day by day. Energy and Mineral Resources Division (EMRD) has already undertaken an array of short, medium, fast track and long term plans to increase gas production to overcome prevailing gas shortage. According to this plan 188 mmcfd, 290 mmcfd, 995 mmcfd (including 500 mmcfd LNG), 500 mmcfd and 380 mmcfd gas will be added to the national gas grid by the year 2010, 2011, 2012, 2013 and 2015 respectively. After completion of these plans production capacity is expected to increase to about 2353 mmcfd gas by December 2015. To increase the gas production more programs will be taken in near future. Bangladesh's natural gas output increased only by 110 million cubic feet per day to 2.26 billion cubic feet per day until June 2013 from 2.15 BCF per day in June 2012, Petrobangla data indicated. Amid annual estimated demand growth of 10 percent, the country's entire recoverable gas reserves of 16.36 trillion cubic feet are expected to continue to 2025 and beyond, although in short supply. In a forecast of gas supply scene from the existing gas fields, production is expected to increase and reach its peak in 2016. As the demand for gas continues to grow, the gap between demand and supply will continue to widen as the production begins to decline after 2016. But if the natural gas consumption rate should exceed that 10 percent growth estimate, Bangladesh's reserves won't last more than a decade. The government's decision for over production raises questions, since it came without measuring the capability for over production of a gas field. In 2009, when the Awami League came to power, the country's gas supplies hovered around 1850-1900 mmcfd, a few hundred mmcfd short of the demand. Over the next five years, the supplies increased up to 2,250 mmcfd due to increased production by the national gas companies. Chevron alone provided 250 mmcfd. And now it is investing half a billion dollars to increase Bibiyana Gas Field's production by 300 mmcfd by early next year to address the country's gas crisis. Experts believe that this might cause Bibiyana to collapse just as Sangu did in the past. Besides over production, the lack of proper management and surveillance also poses some problem.
How Natural Gas Sector Evolved:The search of oil and gas in the area constituting Bangladesh began in the later part of the 19th century through some isolated geological mapping. The first serious attempt to find oil and gas was undertaken in Sitakund in 1908 by the Indian Petroleum Prospecting Company. During 1923-31 Burmah Oil Company (BOC) drilled two shallow wells in Patharia. The wells were abandoned though there was a reported occurrence of oil. A total of 6 exploratory wells were drilled, the deepest being 1047 meters. There was however no discovery and the Second World War disrupted further activity.Gas exploration activities started in this region in the 50s when some multinational companies we active after oil find in Assam following world war two. Pakistan Petroleum Ltd discovered gas at Chiknagul,Haripoor Sylhet. Unfortunately Sylhet 1 was a blow out .There is a crater and a pond around burial of thedrill rig where gas is still bubbling out for almost 60 years. Sylhet 2 was a relief well drilled to contain blowout .Sylhet 3 was the first producer. Around same time gas was also discovered in Chatak. Around sametime Pakistan Industrial Development Corporation planed to set up Natural Gas Fertilizer Factory at Fenchuganj and Cement Factory at Chatak. Gas of Sylhet gas field and Chattak were utilized for these setting up treatment plants and constructing gas transmission pipelines. That was PPL which after independence became BPL and now Sylhet Gas Fields Ltd. That was the beginning of gas era in this part of the world. During Pakistan days Anglo Dutch oil Giant Shell discovered Titas, Habiganj, Rashidpoor, Bakhrabad, Feni and Kaillashtilla. But other than Titas and Habiganj none of the other gas fields were developed. Brambanria Demra gas transmission pipeline was built by French Company GTM for Titas Gas Transmission and Distribution Company a company registered under company act under EPIDC. The market was very limited Shidhirganj Power plant and some domestic and commercial customers. Petroleum Product:Bangladesh imports annually about 1.3 million metric Tons of crude oil. Besides these, another 2.7 million metric Tons (approx) of refined petroleum products per annum is imported. Condensate is mixed with crude oil. Major consumer of liquid fuel is transport sector followed by agriculture, industry and commercial sector which is mostly met by imported liquid fuel. Eastern Refinery Limited (ERL), a subsidiary company of Bangladesh Petroleum Corporation (BPC), is capable of processing 1.3 million metric Tons of crude oil per year. Compressed Natural Gas:CNG vehicles were introduced in 1997 to reduce the dependency on imported fuel, environment pollution and to save foreign currency. Number of CNG refueling Station is 587 and 180 conversion workshops have already been set-up in the country. Total number of CNG converted vehicles is 172683 except theses 53579 CNG vehicles was imported. Total number of CNG vehicles is 213059 as of 2011-12 fiscal years. The proportion of buses and minibuses running on CNG was above 75%. Liquefied Petroleum Gas:LPG can be used in remote areas where access to gas pipeline is difficult and expensive but there is a demand of gas. To lessen the dependency on imported oil and thus to save foreign currency, the use of LPG has to be popularized. Currently the supply of LPG of the country is 95,500 Metric Ton of which production in Public Sector is 22,500 Metric Ton while Production in Private Sector is 73,000 Metric Ton. The Possible demand of LPG in the country is 2,00,000 M. Ton. Government has reduced tax rate on some appliances to popularize the use of LPG.
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