FHM Humayan Kabir

The government last week sought US$250 million funds from the World Bank for different projects under the state-owned energy companies, officials said Tuesday.

Officials said the Bank has already indicated positive response.

"We've sent a request letter to the Washington-based lender last week seeking the fund for some 12 gas projects," an economic relations division (ERD) official told the FE.

If the fund is disbursed, the state-owned energy corporation Petrobangla, gas production company Sylhet Gas Fields Ltd. (SGFL), transmission company Gas Transmission Company Ltd. (GTCL), and lone petroleum exploration and production company BAPEX will utilise the fund for executing the schemes.

"Under a scheme, Petrobangla will conduct a study to find out commercial and technical viability of importing natural gas or liquefied natural gas (LNG) for the country," a Petrobangla official said.

As the country is heading towards sever energy crunch after 2012, the Petrobangla early this year recommended government to import gas or LNG to feed its growing customers.

Besides, the energy corporation would find out possible options of public-private partnership (PPP) investment in a bid to engage the state-owned BAPEX for more energy exploration and production works, he added.

The official said the energy corporation would also prepare an investment framework spending the proposed World Bank fund for further gas and petroleum exploration and production works in Bangladesh.

Petrobangla official said the SGFL would conduct survey at three major on-production gas fields-Kailashtila, Rashidpur and Haripur-to ascertain dispersion of gas structure and characteristics of the reservoirs, and install necessary process plants there.

"We have also requested for $30 million worth of assistance from the WB to form a data package for exploration works including seismic survey to find out hydrocarbon," the ERD official said.

Besides, some $10 million worth of fund has also been sought from the WB for upgrading the GTCL's national grid monitor and control system --Supervisory Control and Data Acquisition (SCADA).

The country has already been facing nearly 200-million cubic feet (mmcf) of gas shortage a day as its demand has been constantly growing.

The energy corporation Petrobangla said the existing proven reserves would be depleting from the year 2012 if there is no new discovery in the coming days.

Shortage of funds have largely been blamed for a total freeze on exploration activities by BAPEX in the last decade, which resulted in an over-dependence on foreign oil companies and a shortfall of 200mmcf of gas a day since November last year.