Bangladesh Economy: News & Updates

[eastwatch]

'Grid to get 2252 MW by 2011'
Sun, Aug 30th, 2009

Dhaka, Aug 30 (bdnews24.com)—At least 2,252 MW will be added to the national power grid by 2011, with a third of that to be generated by year-end, a parliamentary committee said on Sunday.

Officials at a meeting of the parliamentary standing committee on power said that 752 MW of electricity to be generated by December this year would reduce the chronic power outages across the country.

"An additional 1500 mega watts will be added to the grid by 2011," Subid Ali Bhuiyan, chairman of the standing committee, told reporters after the committee meeting in parliament building.

The chairman said the power situation had improved in the country due to efficient management of resources by the government.

He said the daily production of electricity had increased to 4250 MW from the previous 3700 MW since the government came to power in January.

Bhuiyan said his committee also stressed the need for exploiting renewable sources of energy such as solar, wind and wave.

"We have to meet the domestic energy necessities from renewable sources. Gas and coal should only be used for industrial purposes," he said.

bdnews24.com/krc/rah/2301h

 

[eastwatch]

Steel structure for Padma Bridge construction contemplated
Staff Reporter

The Padma multipurpose bridge would be constructed of steel structure instead of concrete to complete the project in the shortest possible time.

A panel of experts have decided to construct the bridge on steel-truss composite after scrutiny of different aspects, official sources said.

The contractors can build a steel bridge over the Padma in three and a half years, whereas a concrete structure might take at least six years. The experts estimated that the time saved would help the country's economy to boost faster.

"It is almost decided that the main structure of the bridge will be made of steel," a well placed source of Bangladesh Bridge Authority told the New Nation.

The Awami League government wants to complete the construction by 2013, a year before its five-year tenure expires.

The government appointed engineering group Maunsell AECOM proposed a two-level 'superstructure' with traffic communication in the upper level and railway in the lower.

Asian Development Bank (ADB), the World Bank, Islamic Development Bank (IDB) and Japan Bank for International Cooperation (JBIC) are among the donors who have already pledged for funding the Padma Bridge project estimated to cost US$ 1.8-1.9 billion.

The resource gap for the construction of the bridge would be around US$ 500 million and the government is planning to mobilize funds locally to meet the resource gap internally.

The government is thinking of issuing bonds to mobilize the resources to meet the gap both in terms of dollar bonds for NRBs and Taka bonds for the resident Bangladeshis instead of imposing surcharge. The World Bank has assured to lend $600 million for the project.

The ADB said it would provide $ 350 million, JBIC $200 million and IDB of $ 300 million.

The 6.15 km long and 21.10 metre wide Padma Multipurpose Bridge will be the longest bridge in the country, surpassing the 4.80 km long Jamuna Multipurpose bridge constructed in 1997.

It will have four-lane road on the top and a broad-gauge rail lane below, with 150 spans, four-kilometre approach road at Mawa and 12 km on the other side in Madaripur.

The bridge, with a proposed 13.6 km approach road, would also have provisions for gas transmission lines, the source said.

Under the plan, the sources said, new broad-gauge line will be constructed from Dhaka to Mawa and from Janjira to Bhanga, Faridpur at an estimated cost of Tk 4,700 crore.

Besides, the existing Panchuria-Faridpur-Pukuria rail line will be renovated connecting Bhanga with Pukuria and Jessore with new broad gauge lines.

The whole project will be implemented in two phases, the sources said adding that in the first phase, new broad gauge line will be constructed on Dhaka-Mawa-Janjira-Bhanga-Pukuria-Faridpur and Panchuria route. And, the broad gauge line from Bhanga to Jessore will be constructed in the second phase.

The draft project profile (DPP) for renovation of the Panchuria-Faridpur- Pukuria rail line and construction of broad gauge line from Bhanga to Pukuria at a cost of T k 291 crore have already been sent to the Planning Commission.

Communication ministry has already completed the survey for alignment of the rail line from Dhaka to Mawa and Janjira to Bhanga.

In the Dhaka side, the rail line will be 50 kilometers from city's Gandaria to Mawa and in the Janjira side the line will be of 30 kilometers from Janjira to Bhanga.

 

[eastwatch]

I am also waiting for the details. I saw that in the newspaper that they submitted the proposal with the PM office. It also said a UK company will provide the conversion technonlogy in one of the coal mine and they said the reserve could be converted to 50 years worth of gas to produce 5000 MW power. And 85% of coal can be converted underground. The details of the technology is still a mystery to me but they said they going to use steam, co2, o2 etc and some sort of combustion underground.

Yet I am not falling for it as most private companies exeggertate things only to win the contract.

Our total coal reserves in the 5 NW coal mines are 2,700 million metric tons. I have once converted the coal volume to the energy equivalent of natural gas. I found that the 2,700 ton coal is equivalent to about 92 trillion (million x million) cft of natural gas. In comparison, the N. gas itself in BD is somewhere between 13 to 28 trillion cft. It means our coal reserves contains about five times more energy than our natural gas.

I do not think the Koreans have the coal gasification technology. It does not matter, because a CONTRACTOR for a chemical-related plant usually purchases the processing technology from another company (probably an US R&D company in case of coal gasification process).

I have checked the cost of building a power plant based on coal gasification. It is about double than that of a conventional power plant. The latter type needs $800 to $1000 per kw, but the former may need more than $1600 per kw to build.

In lieu of initial heavy investment, the coal gasification power plant can be cheaper in the long run. It is due to the enhanced EFFICIENCY of the gasification system. Energy efficiency of a conventional power plant is only less than 35%. But the efficiency goes up to 45% to 50% in case of gasification based power plant.

 

[TopCat]

There are two components here. One is mining and second is power generation. The cost of gasification should be analyzed in mining part of the project. If mining with gassification is cost effective then we should not have problem finding a investor in this project. They said they could convert 85% of the coal reserve of that particular mine. I am still skeptical about it.

We also must be prepared for paying little extra for the gas from those coal mine. Those wont be free like Bibiana gas field.

 

[eastwatch]

There are two components here. One is mining and second is power generation. The cost of gasification should be analyzed in mining part of the project. If mining with gassification is cost effective then we should not have problem finding a investor in this project. They said they could convert 85% of the coal reserve of that particular mine. I am still skeptical about it.

We also must be prepared for paying little extra for the gas from those coal mine. Those wont be free like Bibiana gas field.

There are two separate plants in a coal-turned-gas power plant project. One is gasification plant and the other is power plant. The gas runs the power plant, but a part of the heat produced in the gasification plant is also channelled to the power station. This is why the efficiency goes up to 50%.

There is no extra cost involved in doing the gasification, because whatever may be the running cost, it is more than compensated when the power generation efficiency increases to 50% instead of 35% as it is in an a conventional power station.

However, the initial cost is higher than a conventional one. $1600 or more comparing to $800 - $1000 per KW of capacity.

 

[TopCat]

Well I am not sure about the technology here referred by the company and yours. Yours seems like a separate plant where you do extracted coal gassification. But in the proposal they will do the gassification underground. They will inject high pressure o2, co2, steam and do some sort of combustion inside the mine and extract the gas from the mine like any other gas field. There wont be any coal extraction.

 

[eastwatch]

Well I am not sure about the technology here referred by the company and yours. Yours seems like a separate plant where you do extracted coal gassification. But in the proposal they will do the gassification underground. They will inject high pressure o2, co2, steam and do some sort of combustion inside the mine and extract the gas from the mine like any other gas field. There wont be any coal extraction.

I think, what you have seen in the newspapers are not technically correct. News reporters do not really know about technical things. So, they imagine things. It is obvious that all those oxygen and carbon dioxide or steam cannot be injected in an underground mine. These must be injected into the furnace of a processing plant to break down the coal and transform it into gaseous state.

 

[TopCat]

Well, no they referred like, we dont need to relocate any people, no coal extraction, and 85% of extraction. So I am pretty sure they said underground. But its too early to comment. Lets wait few more days.

 

[eastwatch]

How Coal Gasification Power Plants Work


The heart of a gasification-based system is the gasifier. A gasifier converts hydrocarbon feedstock into gaseous components by applying heat under pressure in the presence of steam.

A gasifier differs from a combustor in that the amount of air or oxygen available inside the gasifier is carefully controlled so that only a relatively small portion of the fuel burns completely. This "partial oxidation" process provides the heat. Rather than burning, most of the carbon-containing feedstock is chemically broken apart by the gasifier's heat and pressure, setting into motion chemical reactions that produce "syngas." Syngas is primarily hydrogen and carbon monoxide, but can include other gaseous constituents; the composition of which can vary depending upon the conditions in the gasifier and the type of feedstock

 

[leonblack08]

Dhaka to seek zero tariff benefit for export items

Star Online Report
Bangladesh would negotiate in the Seventh WTO Ministerial Conference in Geneva to get the country's major exportable products into the duty-free and quota-free categories announced by the developed nations.

The developed countries in the Hong Kong Conference of 2005 had offered the least developed countries duty free access for 97 percent products despite the fact that majority of the products were not produced in the countries.

Only a few countries could enjoy the offer, said Amitav Chakraborty, director general (DG) of the WTO Cell of the commerce ministry at a press briefing at his office today.

"We will try to have our major exportable products like ready-made garments, leather, frozen foods, home textile, textile products and other potential items included in the duty-free category in the conference," said Chakraborty.

The conference is scheduled for November 30 to December 2.

Chakraborty said Bangladesh would strongly support the MODE-4 discussion in the summit, free movement of natural persons, for exporting human resources to developed countries from the LDCs.

Bangladesh would attend the LDC Trade Ministerial Meeting in Tanzania from October 14 to October 16 of the year prior to the conference in Geneva, the DG said.

Tanzania is now coordinating the LDCs for WTO negotiation.

Chakraborty said the commerce ministry already formed an eight-member core committee for selecting negotiation agenda.

The Daily Star - Details News

 

[eastwatch]

Cairn starts exploration work at Magnama in Oct
Cairn starts exploration work at Magnama in October
FHM Humayan Kabir

The Scottish oil company Cairn Energy will start exploration and development work at the Magnama offshore structure in October aiming to produce more than 100 million cubic feet of gas per day (mmcfd), officials said late last week.

The firm has already informed Bangladesh's state-owned energy corporation Petrobangla about the preliminary project development plan, a Petrobangla official said.

About 100 mmcfd of gas is expected to be produced from the Magnama structure, he added.

The Edinburgh-based energy company would invest US$250 million to US$600 million depending on the dispersion of gas and the volume of reserves to produce gas from the Magnama structure from 2012 onwards, he told the FE.

Cairn in its preliminary work-plan said there is a reserve of nearly 790 billion cubic feet (bcf) of gas at Magnama, about 60 kilometres south of the port city Chittagong, in the block-16 in the Bay of Bengal.

The Cairn Energy is going to resume its exploration work at Magnama and Hatia after one year of suspension as the government has recently given permission to sell gas from both the fields to a third party within the country.

Cairn, operator of the country's lone offshore Sangu field, last year suspended exploration there in the face of what it called Petrobangla's reluctance to hiking gas price or sale to private users.

The government for the first time has allowed Cairn to sell gas to a third party. All other local and foreign energy companies operating here are bound to sell gas to the state-owned energy corporation.

"Cairn Energy will start its 3D seismic survey at Magnama and Hatia from October this year," Petrobangla Chairman Muktadir Ali told the FE.

The Scottish oil firm early next month would make a presentation before Petrobangla on its final work-plan for the Magnama field development, he added.

Petrobangla said the resumption of gas exploration and development work at Magnama would help reduce the energy supply crunch in the country, particularly in Chittagong.

Many old and new industries in the port city and its adjacent areas have been remaining idle for long only due to the shortage of gas supply.

Another senior Petrobangla official said Cairn would start three-dimensional (3D) survey from October this year. "Then it will drill an exploratory well in the dry season of 2010 and go for development work to produce gas from 2012," he mentioned.

He said: "The firm from its 2D survey, conducted last dry season, has estimated a reserve of nearly 790 bcf of gas at Magnama in the Bay."

In its work-plan, the Scottish company said it would initially supply 100 to 120 million cubic feet (mmcf) per day to the national grid from the Magnama field, 12 km north-west of the Sangu gas field, he said.

The official said Cairn would first develop the Magnama field and utilise the Sangu field's existing pipeline to take the gas to the process plant onshore.

"It will utilise the government's transmission line to supply gas to consumers in the country," he said.

The company has a plan to augment gas production to 200 mmcfd from both Magnama and Hatia structures after successful drilling at Magnama first, he added.

 

[eastwatch]

Cairn starts exploration work at Magnama in Oct
Cairn starts exploration work at Magnama in October
FHM Humayan Kabir

The Edinburgh-based energy company would invest US$250 million to US$600 million depending on the dispersion of gas and the volume of reserves to produce gas from the Magnama structure from 2012 onwards, he told the FE.

Cairn in its preliminary work-plan said there is a reserve of nearly 790 billion cubic feet (bcf) of gas at Magnama, about 60 kilometres south of the port city Chittagong, in the block-16 in the Bay of Bengal.

He said: "The firm from its 2D survey, conducted last dry season, has estimated a reserve of nearly 790 bcf of gas at Magnama in the Bay."

The official said Cairn would first develop the Magnama field and utilise the Sangu field's existing pipeline to take the gas to the process plant onshore.

790 billion cft of natural gas is a small field. Nevertheless, international market value at the rate of $5 per thousand cft, this small reserve is worth $3,950 million. Definitely not a small sum of money. Cox's Bazaar, Sangu, Teknaf and the sea southeast from Teknaf may have good quantity of gas reserves.

 

[M_Saint]

There is a saying, "Jhare Bak More, Fakirer Keramoti Bare."

Tariq, Hawa Bhabhan, BNP's syndicate were depriving us from getting 10% growth but alas! Hardly anyone listened to few of our cries that
6.8% over all growth, 13.5 industrial growths under so-called RAZAKAR Nizami and the achievement best HDI index under Mujahid
couldn't be acquired if the accusations were true. Like 70s phony accusation of W Pakistani stealing, 96's stack of Janatar Mancha's lie, it also turned out to be damn lie of RAWAMY dalals. But hey, how could Abul Barkat, novelist Younis's weight be less than Mahmudur Rahman, Nizami etc? Find it out in the following article...


::Welcome to Daily Naya Diganta::

 

[leonblack08]

Local mobile phone sets to hit market in January

Star Online Report
Mobile phone sets made in Bangladesh will hit markets by January next, said the chairman of the parliamentary standing committee on post and telecommunications today.

The handsets would cost between Tk 1,500 and Tk 10,000, committee chief Hasanul Haq Inu told reporters after a meeting at the parliament complex.

He said locally-made land phone sets retailing for Tk 500 each would be available in markets next month.

Telephone Shilpa Sangstha and Cable Shilpa Sangstha took the initiative to manufacture digital land phone and mobile phone sets, fiber optic cables, solar power panel and laptop at home.

Inu said local laptop computer, fibre optic cables and solar panel would hit markets soon.


The Daily Star - Details News

Laptops made in Bangladesh...Alhamdulilah.I hope this materialize soon.

 

[eastwatch]

Local mobile phone sets to hit market in January

Star Online Report
Mobile phone sets made in Bangladesh will hit markets by January next, said the chairman of the parliamentary standing committee on post and telecommunications today.

The handsets would cost between Tk 1,500 and Tk 10,000, committee chief Hasanul Haq Inu told reporters after a meeting at the parliament complex.

He said locally-made land phone sets retailing for Tk 500 each would be available in markets next month.

Telephone Shilpa Sangstha and Cable Shilpa Sangstha took the initiative to manufacture digital land phone and mobile phone sets, fiber optic cables, solar power panel and laptop at home.

Inu said local laptop computer, fibre optic cables and solar panel would hit markets soon.


The Daily Star - Details News

Laptops made in Bangladesh...Alhamdulilah.I hope this materialize soon.

Yes, Alhmdulillah, it is a good news. But, I could not understand the reporting on pricing.