Energy Security and Natural Resources
Challenging
‘Resource
Curse' model in
Bangladesh
Anu Muhammad
April 2013
Photo: Shilpi Barua
What is Energy Security?
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Energy Security can be described as ”the uninterrupted
physical availability at a price which is affordable, while
respecting environment concerns”. (International Energy
Agency)
Energy security is a term for an association between
national security and the availability of natural resources
for energy consumption. Access to cheap energy has
become essential to the functioning of modern
economies.
What is sustainable development?
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‘meets the needs of the present without compromising the ability of
future generations to meet their own needs.’ ( Our Common Future, The Brundtland
Commission, formally the World Commission on Environment and Development (WCED) report, United Nations. 1987.)
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Sustainable development (SD) is a pattern of resource use, that
aims to meet human needs while preserving the environment so
that these needs can be met not only in the present, but also for
generations to come (sometimes taught as ELF-Environment, Local
people, Future)
while oil still accounts for the largest share of world commercial fuel
production, some 2 billion people still rely on the most basic fuel of
all, wood and combustible waste products, for simple cooking and
heating.’
Energy and Development:
Diverge Scenario
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growth winners such as US, Canada, Australia, and
Norway are rich in resources
availability of natural resources should be strong
component of growth, but there are opposite
experiences too……
Many natural resource abundant economies tend to
grow slower than economies without substantial
resources.
growth losers, such as Nigeria, Zambia, Sierra Leone,
Angola, are all resource-rich, while the Asian tigers:
Korea, Taiwan, Hong Kong, and Singapore, are all
resource-poor.
(Institutions and the resource curse: Halvor Mehlum, Karl Moene and Ragnar Torvik, 2nd March 2005)
How Resources turn into Curse?
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The surprisingly negative outcomes in oil- and mineral-dependent
countries are referred to as the “resource curse.” (Covering Oil..)
Natural resource abundance does therefore hinder economic growth
in countries with grabber friendly institutions, but does not in
countries with producer friendly institutions. (Institutions and the resource
curse: Halvor Mehlum, Karl Moene and Ragnar Torvik, 2nd March 2005)
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Many countries rich in natural resources exploit and squander that
wealth to enrich a minority while corruption and mismanagement
leave the majority impoverished. (COVERING OIL: Edited by Svetlana Tsalik and Anya
Schiffrin, Open Society Institute, 2005
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according to the second Arab Human Development Report, released
by the United Nations in 2003, high dependence on oil in parts of
the Middle East has led to “the over concentration of wealth in a
few hands,” and “faltering economic growth,” and “weakened the
demand for knowledge.”
Occupation, Colonization, internal
Militarization, war, genocide..
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Saudi Arabia
Somalia
Iraq
Afghanistan
Libya
India
Ecuador
Colombia
Myanmar
Nigeria
Angola
Sudan
Indonesia
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Global Military expenditure
goes beyond $1 trillion a year
1 per cent of this could provide
safe water for 7 billion people
in the earth (Source: UNDP, 2000)
Oil-gas-coal corporate bodies
are the main patrons of
autocracy and war for
grabbing resources, therefore
prime beneficiaries.
Examples of Internal
Militarization
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India: almost one third of India is now ruled by military, most of
these areas are resource rich.
Nigeria: Shell pays local security forces that commit abuses in
Niger Delta; fails to aggressively step in during the trial and
execution of local leaders (1990s)
Nigeria: Chevron recruited and transported Nigerian military and
police who shot at and killed peaceful protesters from Chevron
helicopters (1998 and 1999). Poet activist was hanged for protest.
Burma: Unocal contracts with Burmese military to provide security
for Yadana pipeline; villagers are killed, raped, tortured, and
forced to work building infrastructure (1994 – present)
Colombia: Colombian riot police brought in to remove members of
U’wa indigenous people resisting Occidental Petroleum’s oil
projects (late 1990s). In an unending war against people in the
name of anti-drug operation.
Ecuador: ‘the city of shell’ in Amazon jungle, near Quito, is
protected by military base.
Four types of countries
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US, Australia, UK, France, Germany….command over
own resources, also on resources in many other
countries of the world. Beneficiaries of colonial system,
old and new.
Norway, China, Malaysia, India, Brazil, Vietnam: growing
economies, good control over own resources, developed
national institutions, now expanding overseas.
Sudan, Nigeria, Colombia….. (resource curse group), no
command over own resources, domination by IOCs or
centre countries.
Venezuela, Bolivia, Ecuador had been in resource curse
group, trying to build new direction by changing policies,
revising international contracts, building new institutions
(coming out of resource curse group).
Where does Bangladesh stand?
What happens in resource curse
countries?
Continuity from colonial period......
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“On average, countries which started the period with a high value of
resource-based exports to GDP tended to experience slower growth
during the following twenty years...” Jeffrey D. Sachs and Andrew M.
Warner, Harvard University, 1997.
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In Saudi Arabia, whose proven crude oil reserves are the greatest in
the world, per capita income has plunged from $28,600 in 1981 to
$6,800 in 2001, increased again with high price of oil in 2008.
Autocracy. Highest military contract with the US in 2011.
In Nigeria and Venezuela, real per capita income has decreased to
the levels of the 1960s, while many other countries—Algeria,
Angola, Congo, Ecuador, Gabon, Iran, Iraq, Kuwait, Libya, Qatar,
and Trinidad Tobago—are back to the levels of the 1970s and early
1980s.
Resources and crisis: Nigeria
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In 2009, Nigeria exported
close to 500 Bcf of LNG.
Nigeria has vast natural
gas, coal, and renewable
energy resources that
could be used for power
generation,
industrialization.
However, the country is
suffering from huge load
shedding, poverty,
unemployment and very
weak infrastructure.
More on Nigeria
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Nigeria had an estimated 187
trillion cubic feet (tcf) of proven
natural gas reserves (2010),
makes Nigeria the ninth largest
natural gas reserve holder in the
world and the largest in Africa,
also largest oil reserve in the
region.
BP Statistical Review of World Energy
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All the oil revenues -- $350 billion
in total – did not seem to add to
the standard of living at all.
Between 1970 and 2000, the
poverty rate increased from about
one-third of the population to
almost 70 per cent of the
population.
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(Covering Oil, Ed. by Svetlana Tsalik and Anya
Schiffrin, Open Society Institute, NY, 2005
Myanmar, Ecuador and Congo
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“An energy rich country, Myanmar is now suffering the worst fuel shortage
in the region. Its own citizens are starved of electricity, but the regime sells
a steady stream of natural gas to neighbouring Thailand. Yet this export
success has not saved the public finances. Current reserves are estimated
at no more than US$240 million-enough to cover only the next six weeks of
imports. A shortage of foreign exchange has caused the black-market price
of gasoline up by 600% in less than a year.” (The Economist, April 4, 2002)
Since 1970, in the period of oil boom, the official poverty level grew from
50 to 70 percent, under or unemployment increased from 15 to 70 percent,
and public debt increased from $240 million to $16 billion. Allocation for the
poorest segments declined from 20 to 6 percent.
(John Perkins: Confessions of an economic Hitman)
Seventy five percent of Congolese natural resources are at the present
owned by foreign companies. Congo rates #158 and #142 in terms of per
capita GDP and human development index. (http://www.dominionpaper.ca/articles/119).
UNCTAD on FDI in the LDCs
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According to a United Nations report, 66% of foreign
investment in the 1990s went to the developing nations
of Africa. It has increased to 87% during 2000-2005.
Only Angola, Chad, Equatorial Guinea and Sudan, the
four oil producing countries, are receiving 56% of
foreign investment. UNCTAD notes, foreign investment
in these developing countries is generally ‘resource
seeking’. The type of this investment is such that it has
neither created jobs nor has it encouraged capacity
building or technical development at the local level. This
sector is like an island where the ones who profit at the
end of the day are the multinational companies
(UNCTAD, The Least Developed Countries Report, 2006).
Joseph Stiglitz on natural resources
in developing economies
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‘A country that sells off its natural resources, privatizes its oil
company, and borrows against future revenues, may experience a
consumption binge that raises GDP, but the accounting framework
should show that the country has actually become poorer.’
The IMF should not put undue pressure on countries to privatize
their extractive industries. (In many developing countries,
privatization is tantamount to selling the natural resources to
foreign firms, since there are no domestic firms with the capital and
skills necessary to undertake the task of extraction.)
A country like Bangladesh, with limited reserves of natural gas,
might want to exercise caution when selling its gas, given that there
is no other effective way of insuring itself against an increase in the
price of energy over the long run.’
(Covering Oil, Ed. by Svetlana Tsalik and Anya Schiffrin, Open Society Institute, NY, 2005
World Bank: neo-liberal reform a
tool for grabbing natural resources
“The Bank’s Oil, Gas, and Mining Policy division -through
an integrated set of services, loans, technical assistance,
guarantees and knowledge products- provides advice on
legal, fiscal and contractual issues, regulation, sector
restructuring, and privatization. These efforts help stateenterprises transition to the private sector –reducing the
drain on the public sector, lowering costs of production,
and providing a level playing field that encourages
entrepreneurs to enter a competitive market.”
(http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTOGMC/0,,menuPK:463288~contentM
DK:20219974~pagePK:148956~piPK:216618~theSitePK:336930,00.html)
Lessons: Global and local
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Resource abundance does not automatically ensure
sustainable development.
For many countries resources become curse. ‘Resource
curse’ phenomenon is now a real issue.
Militarization, war, and conflicts have been closely linked
with grabbing energy resources.
Corruption, poverty, inequality, repression go together
with natural resources for many countries.
Increasing deregulated investment on speculation of oil
and mineral resources create artificial crisis and more
distorted market.
Package programmes in the name of development and
‘economic reform’ pushed by World Bank, IMF et al is
proved to be disastrous for developing economies,
created more insecurity and unsustainibility.
Bangladesh: A country of
Potential and Poverty
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Area: 144000 sq km
Population more than 150 million,
density more than 1300 per sq
km.
One of the most fertile land,
Agriculture is the main livelihood.
Rich water system and
biodiversity: rivers, canals, ponds
and wetlands
Industrious and creative work
force
Oil gas resources in onshore and
offshore, coal in north of the
country.
But trapped in a cycle of poverty
and vulnerability.
Energy and Power: matter of concern
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One of the lowest energy consumption, only higher than Nepal in South
Asia. Electricity consumption per capita in world 2875, in Bangladesh: 208
kw/h. (World Bank: World Development Indicators, Internet, accessed 6.9.11)
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Only 48.5 percent of total population have access to electricity.
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Regular power failure and shortage create huge problems for HH, industry,
agriculture even hospitals.
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Demand side unregulated (while industry, hospital, agriculture suffering
from load shedding, luxurious consumption including AC use experienced
highest growth).
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Supply side dominated by corporate interest, becoming unstable and costly
(increasing IOC and IPP share, rental, quick rental..).
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Lack of vision, no comprehensive energy policy. Compartmental initiative.
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National capability potential is suffering from hostile policies and
Power sector: main features
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Installed power generation
capacity: more than 7000 MW.
Real generation: 5935 MW
high on 19.05.13 (website)
Government: 60%, Private
(including foreign): 40%
Primary fuel to generate
electricity (%):
Gas: 77.31, Diesel:10.45,
Furnace oil: 5.03, Coal: 3.76,
Water: 3.45.
(GOB 2011, Bangladesh Arthanoitik Shameekkha)
90
80
70
60
50
40
30
20
10
0
gas
furnace oil
coal
water
diesel
installed
capacity
net production
Present Reserve and Production Levels of
Natural Gas
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The existing natural gas is mainly used in electricity,
fertilizer, industry, transport and household activity. The
reserve and production situation of gas up to 2010 are as
follows:
Total number of gas fields- 23
Number of gas fields which are in production- 17 (number of wells79)
Total reserve of extractable gas (proven and probable)- 20.5 TCF
(Trillion Cubic Feet)
Total reserve remaining- 12 TCF (may increase to 20 TCF)
Daily gas exploration- about 2000 MMCF (Million Cubic Feet)
Production by Petrobangla- 960 MMCF
Production by International Oil Companies- 1004 MMCF
Daily demand of gas-2500+ MMCF
Daily shortage of gas supply- 500+ MMCF
(http://www.asiatradehub.com/bangladesh/oil2.asp)
BD entered into ‘resource curse’
group?
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In 1974 Petrobangla was established.
In 1975 gas fields were bought from Shell.
In 1982-83 WB came up with ‘development’
scheme to bring IOCs in the sector. Energy
sector reform.
Since 1993 signing of PSCs began. In 2004 coal
contract. All secret, not even discussed in
parliament or parliamentary committees.
Since 1996 private sector power generation
policy. IFIs stopped funding for state power
plant, put Bangladesh dependent on IPPs.
For details see: Anu Muhammad (2008): Kothai Jachche Bangladesh, Sanghati and Development or Destruction,
Essays on Global Hegemony, Corporate Grabbing and Bangladesh, Sraban
Bangladesh divided into blocks for
PSCs with IOCs
Main features of FDI in Energy
Sector
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PSCs were signed with IOCs to purchase gas at average
250 taka when it could be possible to get it at around 25
taka from national companies.
PSCs were signed to purchase its own gas by costly
foreign currency from the IOCs when it was possible to
get it by local currency from its own company.
Policy was taken to bring IOCs or Foreign national
company to explore gas when BAPEX, the national
exploration agency, had the ability to do the same.
Rich blocks in eastern side were awarded for IOCs.
Common property has been turned into private property.
PSCs during 1990s
In 1993-94, Six PSCs were awarded in the first round
 Cairn Energy-Holland Sea Search (Block 15, Block 16),
later Halliburton/Santos Block 16, Shell/Cairn -Block 15
 Occidental (Block 12, Block 13 & 14), later UNOCAl to
Chevron
 Okland-Rexwood (Block 17 & 18), later Oakland/Tullow
 United Meridian Corporation (Block 22)
In 1997, four PSCs were awarded in second licensing
round
 Shell-Cairn Energy-Bapex (Block 5, Block 10),
 Tullow-Chevron-Texaco-Bapex (Block 9)
 Unocal-Bapex (Block 7), later Chevron -BAPEX
Result: Development or Burden?
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By leasing out most resource- rich gas blocks to IOCs,
Bangladesh becomes hostage.
Cost of production of gas and electricity increased by 10
to 30 times. Fiscal deficit increases every year.
Instead of saving public money, drainage and corruption
increased manifold.
In the last 10 years IOCs received 160 billion taka by
selling gas to GOB, which could be purchased by 20
billion taka from national agency in local currency.
Drainage of foreign currency equivalent to 140 billion
taka is a direct result of FDI in energy sector only.
National agencies were made marginalised to give space
to MNCs or foreign state agency. Erosion of national
capability.
Number speaks: construction of
myth to rationalize grabbing
Two arguments behind bringing MNCs in Energy sector:
1. capital scarcity and 2. lack of technical ability. But,
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Every year one at least 500 MW power plant could be built by the
money spent as subsidy for buying gas from MNCs, about 2.5 billion
taka. It is increasing as their share is growing. BD spends more
money with MNCs, not less.
When Bapex-Petrobangla spends Tk. 1 billion to drill a well, MNCs
usually do it by costing 6 to 15 times. UNOCAL spent Tk. 15.31
billion to drill a well. What is wasteful?
MNCs made big blow out, not national agency. Who is more
efficient?
When MNCs selling gas at $3-$4 per thousand CFT, Bapex could
give it at 10% price. Who is more capable?
Confession from WB and ADB
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“Although the individual companies responsible for ADBfinanced gas sector projects are profitable, Petrobangla
is incurring losses due to the increasing share of more
expensive gas from IOCs”.
(http://www.adb.org/Documents/Reports/SAPE/BAN/SAP-BAN-2009-36/SAP-BAN-2009-36.pdf)
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“Petrobangla buys gas from IOCs at a price linked to the
international price of fuel oil. Petrobangla will incur
increasing deficits, leading to a negative cash flow.”
(World Bank: Foreign Direct Investment in Bangladesh: Issues of long run Sustainability, October 1999.)
and Solutions from WB and ADB
Their solutions:
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To solve the fiscal
deficit, raise gas
price.
To solve the pressure
on foreign currency,
export gas.
Peoples suffering and rejection:
 GOB has been periodically
increasing gas price and price
of electricity. Rising cost of
production and cost of living
an obvious outcome.
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Independent experts and
people in general opposed
export move taken jointly by
GOB, MNCs, IFIs, embassies.
Otherwise present gas and
power crisis could have been
doubly worse.
For detail analysis, Anu Muhammad: Development or
Destruction...., 2007
5 billion US$ due from US
and Canadian company
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Bangladesh lost 500 bcf gas for
blowout in Magurchhara (1997)
and Tengratila (2005). This
amount of gas equals to gas used
for power generation in 20
months for whole Bangladesh.
Compensation due from US
company Chevron and Canadian
company NIKO. The price of gas
lost only is more than 5 billion US
dollar, which is 7 times of yearly
budget allocation for energy
sector. Still today compensation
is unpaid.
WB, ADB or other IFIs used to be
very vocal about everything but
collectively remain silent about
this compensation issue.
“South Asia is emerging as an important region both economically and
politically. President Obama shifted focus from Iraq to South Asia as soon
as he took office in 2008. The strategic alliances in South Asia–with
India, China, Pakistan and the US being the key players –are largely to
secure control of fossil fuels, minerals, and other natural resources, and
the infrastructure such as oil and gas pipelines and ports to import and
export them.”
The Militarization of India, http://www.counterpunch.org/2011/05/27/the-militarization-of-india/)
Is Bangladesh becoming a victim
of new global strategy?
Wikileaks: Who decides on peoples
lives and resources?
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‘US diplomats privately pressurised the Bangladeshi government into
reinstating a controversial coal mine which had been closed
following violent protests’.
‘Later on in the cable, Moriarty privately noted: "Asia Energy, the
company behind the Phulbari project, has sixty percent US
investment. Asia Energy officials told the Ambassador they were
cautiously optimistic that the project would win government
approval in the coming months.”’
‘Energy Adviser agreed to build support for the project through the
parliamentary process.’
http://www.guardian.co.uk/world/2010/dec/21/wikileaks-cables-us-bangladesh-coal-mine
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The US ambassador to Bangladesh persuaded the government in
July last year to award two blocks in the Bay of Bengal to Conoco
Phillips and to permit Chevron to set up a compressor in Muchai, a
CNN-IBN report said on Friday quoting US diplomatic cables leaked
by Wikileaks.
http://www.bdinn.com/news/conoco-phillips-chevron-contracts-pm%E2%80%99s-adviser-us-envoy-agreeddeals- wikileaks/
Oil gas blocks in Bay of Bengal
leased out on 16.6.11
Main concern:
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100 per cent export opportunity
for Conoco-Phillips (15.5.1 Subject
to Articles 15.5.4, 15.5.5 and 15.6
Bangladesh share not more than
20% (15.5.4), but needs to build
its own pipeline to bring it
onshore.
Production limit is relaxed (to
more than 7.5%)
Joint Review committee and
management committee are
dominated by IOC.
Conoco phillips has bad records
for blowout, compensation
conditions are not concrete.
Authority over Bay of Bengal is
crucial for bangladesh. That is
being threatened.
PSC 2012
Amendments to meet MNCs demand (upto
May 2013)
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•
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Almost import price
Cost recovery share increased
Third party sales right
No corporate tax
Coal: location, depth and reserve
Year of Discovery
Location
Depth (meter)
Reserve (million
ton)
comment
1962
Jamalganj,
Joypurhat
640-1158
1050
Too deep to be
technically
feasible in the
foreseeable
future.
1985
Barapukuria,
Dinajpur
130-506
390
Production since
2005, ownership
with Petrobangla,
Land slide and
water logging.
1989
Khalashpir
257-482
685
Project is ready to
be implemented
1989
Dighipara,
Dinajpur
328-407
500 (yet to be
confirmed)
Petrobangla, not
yet began any
work
1997
Phulbari, Dinajpur
150-240
572
Export and open
pit mine based
project was
rejected by the
people
Phulbari coal project
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The Bangladesh Government originally awarded an exploration
license to the Australian company BHP Minerals in 1994, which
however, decided against developing a coal mining operation in the
area.
In 1997 Asia Energy was formed and in 1998 BHP transferred its
licence to this newly formed company, incorporated in London Stock
Exchange Alternative Investment Market, changed its name to
Global Coal Management after August 2006 killings in Phulbari.
Its major shareholders have been Polo Resources USA, RAB Capital,
UBS, Fidelity Group, Barclays, Credit Suisse, LR Global, Ospraie
Management, Capital Group and Argos Greater Europe Fund.
Project of 30-35 years, for Bangladesh only 6 per cent royalty.
75-80 per cent of the coal was planned for export through
Sundarban mangrove forest.
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3 crop, highly fertile
area, free from flood
and natural disaster
Photo: Phillip Gain
Cost for Bangladesh
•656 sq km area of this region would be
affected by open pit mining
•Destruction of rivers, canals, water
bodies, fish farms, ducks, hens and cattle,
thousands of shops, and business and
commercial houses.
Why to oppose open pit?
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About 200,000 people from 150
villages will have to be evacuated from
only one mine area.
Dewatering in the mining area will not
only disturb the major aquifer, it will
also damage the most potential and
massive aquifer of north-western
Bangladesh, making the area a desertlike place.
Huge area outside the mining area will
be affected through groundwater
depletion, that currently provides a
significant portion of the country’s
food supply. Open pit mine Project
would therefore have serious impacts
for the food security of the entire
country.
After destroying food security and
human security, by exporting coal it
was planning to destroy energy
security too.
Peoples Mobilization against
Resource Curse
Peoples collective efforts
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Resistance against gas export by depriving people and the economy
(2002-2004).
Phulbari uprising and national resistance in 2006 regarding phulbari
coal project. 3 young men gave their lives to save the country from
unprecedented disaster
Resisted open pit mining and export of coal in Phulbari. Resistance
is on (latest long march 24-30 Oct, 2010).
Peoples tribunal against World Bank, IMF and ADB has identified
problems of these ‘friend philosopher guide’ (2007).
Protest continuing against gas deal with conoco phillips with export
provision since 2008, (including two general strikes in 2009 and
2011).
Brought energy and sustainable development in peoples thinking
and actions, as well as in political agenda.
Phulbari Agreement
1.
2.
3.
Phulbari Agreement was
signed between GOB and the
agitating people (August 30
2006). The main points were:
‘Phulbari coal project will be
scrapped and Asia energy will
be ousted from the country.’
‘No open pit mining will be
allowed anywhere in the
country’.
‘Mining method and other
steps for coal development
and utilization will be taken
after proper consultation with
the people keeping national
interest in tact’.
Verdicts from Peoples Movements:
Challenges against Resource Curse
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People of Bangladesh should have 100 per cent owner of its own resources
Neo liberal development paradigm should be replaced by people centred
development policy
IFIs disastrous policies should be rejected, to made them accoutable, and
their immunity should be scrapped
Food and Energy should be the priority. No destruction of agri land and no
export of energy.
No development project that destroys peoples lives, livelihoods and
environment.
Peoples consent and long term sustainability must be part of development
process.
People will not accept ‘projects of mass destruction’ in the name of
development or FDI.
More efforts should be given to explore huge potential of renewable
energy.
Renewable energy: future of
human civilization
Main features:
 Supply of solar power and wind for power generation is infinite;
available all over the year in Bangladesh.
 Cost is still comparatively high, research and innovation will soon
make it cheaper.
 Possible to produce in different scales.
 Possible to reach remote places.
 Speculation and plunder, war and conflict, crisis and scarcity not
likely from within.
 Part of nature, part of Environment.
 Nothing to worry about future energy security.
Yet to be done:
Comprehensive plan to build up own capability to escape unnecessary
trap by big business and global power.
Recommendations
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Proprietorship and authority of the people over natural resources should be strictly
ensured.
Since it is limited and non-renewable; export of gas, coal and any product there from
shall be prohibited by law.
Phulbari agreement (prohibit open pit mining and expulsion of Asia Energy or GCM
for its crime and fraudulent activities) should be implemented to earn confidence of
the people.
National coal agency should be established to utilize resources in environment
friendly way.
Maritime boundary and maritime resources should be protected to ensure energy and
national security.
Realization of compensation for losses in Magurchara and Tengratila and penalty for
crimes and irregularities. And to use this money to build energy infrastructure.
National energy policy with a clear vision to ensure energy security with sustainable
development.
National capacity building, BAPEX, Petrobangla, Geological Survey of Bangladesh
(GSB) and Bureau of mineral development (BND) shall be adequately developed.
More departments at university level and also research institutes shall be established
at national level to develop skilled manpower for mineral resources development and
their best utilization. For this purpose, the services of expatriate Bangladeshi experts
and foreign experts, if needed, shall be utilized.
Huge potential of renewable energy should be explored, national capability to be
developed. Production of solar panel, wind mill, tools for biogas plant should be
encouraged through different incentives.
Immediate steps necessary to ease gas and
power crisis.
Increase production of gas from rich gas fields like Titas and Hobiganj under national agencies.

To make 12 gas points, closed for technical reasons, operational.

To ask IOCs to explore all blocks under their domain, takeover blocks which they unable to do
and the expired ones.

Renovate and repair power plants including Barapukuria power plant, transmission line and gas
pipe line.
All these steps should cost only 9.5 billion taka but will be able to add about 1400 MW in the national
grid.

Development of ‘Sunetra’ gas field with probability of 4.5 TCF should be done by BAPEX, cost:
2.79 billion taka. PSC 2011 process should be stopped.

Moreover,

Installing small power plants by local entrepreneur should be encouraged.

Local entrepreneur also should be encouraged to produce solar panel and more battery.

Shopping malls and high rise apartment and office buildings should be discouraged.

Hospitals, industry, agriculture should get priority to get electricity over shopping malls and VIP
residence, ad bill boards.

Use of AC should be discouraged. (one small AC consume power by which 50 HH can get one fan
each).
Countries like Bangladesh need to change the approaches of
Development to challenge ‘Resource curse’ model to ensure
energy security and sustainable development.
Energy
sovereignty is
the key to
energy
security and
development.
Photo: Taslima Akhtar