Bangladesh Economy: News & Updates

[fallstuff]

Where will the gas come from?we already are having gas shortages.I don't know if there is any other alternative.Anyone having knowledge on this please share.

Let me see if I can ease your concerns:

Govt to start negotiation with Qatar to import LNG

BSS, Dhaka



To start negotiation with the Qatar government for importing 500 mmcf Liquefied Natural Gas (LNG), a high-powered government team will leave here for Doha on June 1.

Energy Secretary Md Mesbahuddin will lead the Bangladesh team comprising members from the IMED, CPU (Central Procurement Unit), Law ministry, Energy ministry, Petrobangla and GTCL (Gas Transmission Company Ltd). "We will sit with the top officials of petroleum department of the Qatar government to discuss installations of terminal and gas transmission line, price of LNG and other related issues of LNG import from Qatar", a top official of the energy ministry told BSS today.

He said Bangladesh would also seek their (Qatar) all-out support including technology transfer and development of human resources in this regard.

"To mitigate the ongoing energy crisis, especially in the Chittagong zone, the government has decided to import LNG to tackle the matter on an emergency basis," he also said.

The country faces gas shortage of around 400 million cubic feet per day at present as Petrobangla supplies around 1,960- 1,980 mmcfd gas against the demand for 2,400 mmcfd.

"This is for the first time the government to government negotiation is taking place. Our plan is to import this amount of LNG per year and we can supply it to the national grid", the energy secretary said.

In February last, the government formed a taskforce, headed by power and energy secretaries, for construction of an LNG terminal at Chittagong involving about $ US 1 rpt One billion.

According to Petrobangla, Bangladesh would need around $US 6 to 7 million to import 500 million cubic feet of LNG per day.

Link:
The New Nation - Internet Edition

 

[fallstuff]

^^ It will cost between $2 to 3.5 billion. BD has the money. Majority of the nations import gas. This is nothing new. The chances of new production coming on line are also very high.

 

[fallstuff]

U.S. Geological Survey Bulletin 2208-A

U.S. Geological Survey-PetroBangla Cooperative Assessment of Undiscovered Natural Gas Resources of Bangladesh: Petroleum Systems and Related Geologic Studies in Region 8, South Asia

Edited by Craig J. Wandrey

Version 1.0

PDF report link:

USGS Bulletin 2208-A: U.S. Geological Survey-PetroBangla Cooperative Assessment of Undiscovered Natural Gas Resources of Bangladesh: Petroleum Systems and Related Studies in Region 8, South Asia

 

[sab]

Well Congratulations to BD!!

India has to catch up with BD. Better make a study of BD way of doing business. We may get some useful points.

As I believe, there is nothing wrong in learning.

"What Bengal thinks today , the rest of India thinks tomorrow"- Most of Bengal is now Bangladesh, but the old phrase is still valid.

Very very nice thread. Congrats to the starter.

The comments of Eastwatch is remarkable...." ....three million death, Indiaphobia etc no more attract votes. People want development..."
This should be the scenario of whole sub-continent...we are fade up of religion, indiaphobia, Pak-phobia and dirty politics etc. People need more works and improved standard of living...

 

[idune]

^^ It will cost between $2 to 3.5 billion. BD has the money. Majority of the nations import gas. This is nothing new. The chances of new production coming on line are also very high.

1. As you claim BD has the 2-3 billion dollars to spare for gas, could you please show where the money will come from?????
   
2. Also please show what would be the fertilizer and food price be as a result???
   
3. Do you think Awami regime would be that sucidal?????

 

[fallstuff]

1. As you claim BD has the 2-3 billion dollars to spare for gas, could you please show where the money will come from?????
   
2. Also please show what would be the fertilizer and food price be as a result???
   
3. Do you think Awami regime would be that sucidal?????

Easing your concerns are beyond my known capabilities as such an endeavor will probably require an exorcist or priest to get the scary Awami/India evil hold off you.

 

[idune]

Easing your concerns are beyond my known capabilities as such an endeavor will probably require an exorcist or priest to get the scary Awami/India evil hold off you.

You are too quick to make claims $2-3 billion is no problem. But when question asked on source of fund and implication of such fund, you run for priest. As usual whole lot of huff and puff but nothing in substance; so much so even inventors of "digital deception" in Bangladesh will not touch your claim.

But just to give some idea on the subject and reality:


1) The Islamic Development Bank now provides about $1 billion/year while the corporation arranges the remaining amount from state-owned banks and fuel oil sales on the local market.

2) Bangladesh Petroleum Corporation chairman Anwarul Karim told the meeting the accumulated loss of the corporation had stood at Tk 19,600 crore as of March 2010 and the corporation projected the loss this year at Tk 1,500 crore because of a gap in import cost, including duties, and the selling cost.

3) Bangladesh Petroleum Corporation has projected that fuel oil import bills would go up by Tk 5,000 crore in the next financial year as the annual demand for fuel oils would increase to 43.85 lakh tonnes from the existing 35 lakh tonnes because of the installation of oil-fired rental power plants.


http://www.energybangla.com/index.php?mod=article&cat=Petroleumsector&article=2441

 

[eastwatch]

U.S. Geological Survey Bulletin 2208-A

U.S. Geological Survey-PetroBangla Cooperative Assessment of Undiscovered Natural Gas Resources of Bangladesh: Petroleum Systems and Related Geologic Studies in Region 8, South Asia

Edited by Craig J. Wandrey

Version 1.0

PDF report link:

USGS Bulletin 2208-A: U.S. Geological Survey-PetroBangla Cooperative Assessment of Undiscovered Natural Gas Resources of Bangladesh: Petroleum Systems and Related Studies in Region 8, South Asia

Being myself unaware of the involvement of US survey team in our hydrocarbon assessment program only a few years ago, I have found your post and its references to be full of knowledge on the subject. I appreciate your contribution.

The US team assesses the probable reserves at about 32.1 trillion cft (tcf) of gas. At the present market price, the total value stands at $160.5 billion dollars when the unit price is assumed at $5 per thousand cft.

In the early 1975, our jute lost its luster. It lost international market because of introduction of chemical-based polyester threads throughout the western world. Then our entrepreaneurs with very very limited initial capital came forward to invest small money into garments and other small industries.

Electricity was needed to run these factories. The country forced its citizens to remain in dark in the evenings, but somehow mangaed to supply power to the industries, and the industries themselves imported many gas-run generators as well to minimize the ill effects of load sheddings.

This fiscal year the garment industry will export about $12 billion worth of high quality goods to the world market. This industry is contempleting to diversify its source of cotton from India to Pakistan, to central asia and to the african countries. This industry will keep on bringing us much foreign exchange, which will certainly be used to develop many other sectors.

What I want to say is that whatever is our stage of development today and whatever high stage we will reach in the coming years are solely due to the presence of natural gas in our small and poor country. Even if our reserve is too small comparing to say, Iranian reserve (900 tcf), nevertheless this small gas reserve has worked as our SEED resource. It is like 5kg of paddy SEED that produces 5 ton of rice.

Without our own gas fields we could not have initiated the development process and could not have achieved the present prosperity. And without the current prosperity at hand, possibility would have been remote to prosper further in the future.

Our economy has reached a very important stage. It has ALMOST　entered the self-sustaining stage. At and after this stage, we may not have to depend upon our own natural resources. We will be making a high export earning, and we will use part of this earning to import raw materials, machineries, other essentials as well as OIL and GAS from foreign countries.

By the way, to import natural gas from Qatar or from any other source, it is necessary that BD builds an LNG terminal somewhere along the sea shore. Natural gas is liquified at the source country at minus (-) 162*c and loaded in a LNG tanker. When the tanker reaches our shore, it will be necessary to bring it to gaseous state.

However, a hydrogen bomb explosion may occur if it is not de-liquefied under certain processes. This is why we will need quite an investment. But, $2-3 billion is too high. Even to build a LNG plant it takes about $1 billion. Some other investments are needed to build LNG tankers. But, since BD will be an importing country, therefore, the expenditures will be much lower, since it will build only a de-liquification plant.

I am sure, you yourself are aware of the technical points that I have noted here. But, I thought there are other posters who would be interested about these points. This is why I have included these points.

Regards.

 

[fallstuff]

Being myself unaware of the involvement of US survey team in our hydrocarbon assessment program only a few years ago, I have found your post and its references to be full of knowledge on the subject. I appreciate your contribution.

The US team assesses the probable reserves at about 32.1 trillion cft (tcf) of gas. At the present market price, the total value stands at $160.5 billion dollars when the unit price is assumed at $5 per thousand cft.

In the early 1975, our jute lost its luster. It lost international market because of introduction of chemical-based polyester threads throughout the western world. Then our entrepreaneurs with very very limited initial capital came forward to invest small money into garments and other small industries.

Electricity was needed to run these factories. The country forced its citizens to remain in dark in the evenings, but somehow mangaed to supply power to the industries, and the industries themselves imported many gas-run generators as well to minimize the ill effects of load sheddings.

This fiscal year the garment industry will export about $12 billion worth of high quality goods to the world market. This industry is contemplating to diversify its source of cotton from India to Pakistan, to central asia and to the african countries. This industry will keep on bringing us much foreign exchange, which will certainly be used to develop many other sectors.

What I want to say is that whatever is our stage of development today and whatever high stage we will reach in the coming years are solely due to the presence of natural gas in our small and poor country. Even if our reserve is too small comparing to say, Iranian reserve (900 tcf), nevertheless this small gas reserve has worked as our SEED resource. It is like 5kg of paddy SEED that produces 5 ton of rice.

Without our own gas fields we could not have initiated the development process and could not have achieved the present prosperity. And without the current prosperity at hand, possibility would have been remote to prosper further in the future.

Our economy has reached a very important stage. It has ALMOST　entered the self-sustaining stage. At and after this stage, we may not have to depend upon our own natural resources. We make a high export earning, and we use part of this earning to import raw materials, machineries, other essentials as well as OIL and GAS from foreign countries.

By the way, to import natural gas from Qatar or from any other source, it is necessary that BD builds an LNG terminal somewhere along the sea shore. Natural gas is liquified at the source country at minus (-) 162*c and loaded in a LNG tanker. When the tanker reaches our shore, it will be necessary to bring it to gaseous state.

However, a hydrogen bomb explosion may occur if it is not de-liquefied under certain processes. This is why we will need quite an investment. But, $2-3 billion is too high. Even to build a LNG plant it takes about $1 billion. Some other investments are needed to build LNG tankers. But, since BD will be an importing country, therefore, the expenditures will be much lower, since it will build only a de-liquification plant.

I am sure, you yourself are aware of the technical points that I have noted here. But, I thought there are other posters who would be interested about these points. This is why I have included these points.

Regards.

$2-3 billion is just for gas per year. Support infrastructure is extra. you can borrow money. BD has a better credit rating, just a notch below India. Current balance has been in the positive for few years. At the end of the fiscal year might reach $11 billion.

 

[fallstuff]

Wage Earners Remittance Inflows (Monthly)
Year/Month Remittances

In million US dollar In million Taka
2009-2010
March 956.49 66236.90
Februa 827.96 57369.30
January 952.39 65876.80
Decem 873.86 60444.90
Nove 1050.54 72592.30
October 900.70 62238.40
September 887.57 61295.60
August 935.15 64581.40
July 885.38 61144.30
2008-2009
June 919.10 63463.90
May 895.30 61802.60
April 840.99 58045.10
March 885.67 61102.40
February 784.47 54057.80
January 859.00 59185.10
December 758.03 52220.70
November 761.38 52322.00
October 648.51 44448.90
September 794.18 54417.20
August 721.92 49466.00
July 820.71 56226.80
2007-2008
June 753.58 51635.30
May 730.26 50073.90
April 781.71 53609.70

Source : Foreign Exchange Policy Department, Bangladesh Bank
Link :

Bangladesh Bank

 

[eastwatch]

Per capita income crosses $700

Friday, May 28, 2010
BusinessPer capita income crosses $700
Rejaul Karim Byron

The per capita income crossed the $700 mark in the current fiscal year, mainly because of a healthy GDP growth.

The people of lower strata have got a share of the rise in the income as small-scale industries have shown a rapid growth and employed the poor segment.

The per capita income has reached $750 this fiscal year from $676 last year.

For Bangladesh to graduate to a mid-income country, its per capita income should be $975 now.

World Bank senior economist Zahid Hussain said Bangladesh can quickly reach the mid-income group of countries only if its GDP grows at a faster rate of around 7.5 percent to 8 percent. The GDP (gross domestic product) growth rate is 5.5 percent now.

Hussain said the growth is healthy in the existing economic scenario.

Bangladesh Bureau of Statistics (BBS) early this week finalised the provisional account of GDP for the current fiscal year and the actual GDP calculations for the last year.

"If we can't make a rapid progress, we won't be able to reach the level of per capita income required for becoming a mid-income country," Hussain said.

"From the growth pattern it seems that the low-income people have benefited from the rise in the per capita income."

In the manufacturing sector, small-scale industries, which are more labour intensive, have shown the most rapid growth.

The WB economist also said the country fetched a huge amount of remittance this year, which gave a rise to non-farm activities such as in small teashops, biscuit factories and small toy shops in the rural areas.

This has helped the lower strata people get a share of the increased per capita income, said Hussain.

He said the growth has almost doubled this fiscal year in public administration and education sectors. The income of the government staff, workers and teachers increased as the pay scale was implemented.

The government repeatedly projected the GDP growth rate to be 6 percent but the BBS provisional account shows that the growth was 5.54 percent this fiscal year.

The BBS in the final calculation of last fiscal year's GDP growth showed a slide to 5.74 percent, which was 5.9 percent in earlier estimate.

The services sector showed a good growth this year, but the overall GDP growth was lower because of a fall in the agriculture and industries sectors.

The growth rate in the agriculture sector dropped almost by half due to the declining growth in crop. The growth rate in crop sector was 2.20 percent this fiscal year, down from 4.02 percent last year.

BBS officials said the main contributor to the crop sector is rice. In the last fiscal year crop sector saw a bumper production of rice at around three crore tonnes. Although Aus crop was hampered this year, the harvest is expected to be around three crore tonnes. As the production remained the same, the crop sector did not rise.

In the manufacturing sector, the growth rate fell by 1.40 percentage points compared to the last fiscal year, due to a poor performance by the export sector.

The inflow of a big amount of remittance and the implementation of pay scale in the public sector contributed to the growth in the services sector.

 

[eastwatch]

Per capita income crosses $700

Friday, May 28, 2010
BusinessPer capita income crosses $700
Rejaul Karim Byron

The per capita income crossed the $700 mark in the current fiscal year, mainly because of a healthy GDP growth.

The people of lower strata have got a share of the rise in the income as small-scale industries have shown a rapid growth and employed the poor segment.

The per capita income has reached $750 this fiscal year from $676 last year. For Bangladesh to graduate to a mid-income country, its per capita income should be $975 now.

I am happy if our per capita income has surpassed the $700 mark and has reached $750. But, the assessments given in this article has quite a few mistakes. One mistake is $676 per capita income last year. As far as I know, it was $690. Last year, $676 was per capita GDP, but $690 was per capita INCOME. These are two different things and the writer or the economist has mixed up these two figures.

 

[TopCat]

For Bangladesh to graduate to a mid-income country, its per capita income should be $975 now.

Per capita income only does not make any country mid income. Then India Pakistan could had been called mid income by now. There are some others parameter needs to be filled before a country can be called mid income. We are ahead of target in those parameter but we still have to wait quite a few year before those parameter can be fullfilled.

"From the growth pattern it seems that the low-income people have benefited from the rise in the per capita income."

In the manufacturing sector, small-scale industries, which are more labour intensive, have shown the most rapid growth.

The WB economist also said the country fetched a huge amount of remittance this year, which gave a rise to non-farm activities such as in small teashops, biscuit factories and small toy shops in the rural areas.

This has helped the lower strata people get a share of the increased per capita income, said Hussain.

That is the best part, so we dont see terrorism and moist attack in our cities..

 

[TopCat]

I am happy if our per capita income has surpassed the $700 mark and has reached $750. But, the assessments given in this article has quite a few mistakes. One mistake is $676 per capita income last year. As far as I know, it was $690. Last year, $676 was per capita GDP, but $690 was per capita INCOME. These are two different things and the writer or the economist has mixed up these two figures.

Last years provisional GDP figure is revised and lowered little bit. Thats probably the reason.

 

[psychedelic_renegade]

From the growth pattern it seems that the low-income people have benefited from the rise in the per capita income."

In the manufacturing sector, small-scale industries, which are more labour intensive, have shown the most rapid growth.

The WB economist also said the country fetched a huge amount of remittance this year, which gave a rise to non-farm activities such as in small teashops, biscuit factories and small toy shops in the rural areas.

What's the contribution of Gramin Bank to the rise of small scale industries?