Nasrul Hamid
Imagine if electricity generation capacity were still 3000 MW like in BNP-Jamaat govt period: Nasrul Hamid
State Minister for Power, Energy and Mineral Resources Nasrul Hamid has shared an explanation on why load shedding has become more acute and frequent in Bangladesh as people struggle with the ongoing sweltering heat.
“People of Bangladesh are suffering during this scorching heat. Use of air conditioners and fans is increasing, and people are using these devices for comfort,” the state minister wrote in a post on his verified Facebook profile.
Read more: BTMA seeks smooth gas-electricity supply and loan moratorium to survive
On June 3, Bangladesh generated 13,635 MW of electricity, yet there was load shedding, he noted.
Imagine what would have happened in the country today if 3000 MW of electricity were being produced as was the case during the last BNP-Jamaat government, he wrote.
“The Awami League government has provided electricity to all the villages and cities in the country. This is a people's government, so the government wants to deal with this crisis with the cooperation of everyone,” Nasrul Hamid wrote in the post.
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He urged everyone to save electricity from their individual position.
Ilisha-1 country’s 29th gas field: Nasrul Hamid
Ilisha-1 in Bhola district was announced to be the 29th gas field of Bangladesh where substantial gas was found recently.
“We believe, Ilisha-1 has a reserve of 200 billion cubic feet (bcf) of gas. The entire Bhola area, including this one, has a reserve of 3 trillion cubic feet (tcf) of gas,” State Minister for Power, Energy and Mineral Resources Nasrul Hamid told reporters today (May 22, 2023) during a briefing at his Dhaka residence while formally announcing the discovery of the gas field.
He said this is great news for the people of the country.
Also Read: 3 strikes for Ilisha-1: another drill test finds gas
Ilisha-1 is located in an union in Bhola district, about 182 km from the capital city Dhaka.
On March 8 this year, Ilisha-1 excavation started in the Maler Hat area of Ilisha union under Bhola Sadar upazila and the drilling was completed successfully on April 24 through the Drill Stem Test in three levels at a depth of 3,475 metres.
The state minister said earlier that gas was found in different wells under Bhola north and Bhola south structures.
He said a plan is being prepared to bring gas from the Bhola area to Dhaka through a pipeline where many industries are facing a nagging gas shortage.
Read more: Chevron inks deals to dig more wells at expanded Bibiyana gas field
A pre-feasibility was conducted and now work is in progress for conducting a feasibility study on the issue, he noted.
Nasrul Hamid said it will take about 3 years to bring the gas from Bhola to Dhaka through a pipeline.
Initially, he said, a private company has signed a contract to bring a total of 25 mmcfd gas from Bhola through a big trailer. Primarily, it will start with 5 mmcfd.
He informed that the government has a plan to create a ring-fence of pipeline covering Bhola, Barishal and Dhaka to use the gas for this region while another ring-fence will be created covering the districts in Dhaka, Sylhet and others.
Read more: 2nd phase of directional drilling at Srikail North Gas field starts
He said the commercial value of the gas in Bhola will be Tk 6500 crore if calculated in local value and Tk 26000 crore in the value of gas being imported.
Nasrul Hamid said the Ilisha-1 gas field’s discovery was announced after completion of necessary drilling and other works.
Currently, about 2300 mmcfd gas is being produced from 22 gas fields in the country, while about 700 mmcfd gas is being imported to meet the demand of about 4000 mmcfd, leaving a deficit of about 1000 mmcfd.
Apart from Ilisha-1, two Bhola gas fields have around 200 mmcf production capacity, while the production hovers between 80-85 mmcf.
Read more: China’s Sinopec to drill for gas at Well No-10 of Sylhet Gas Field
Therefore, around 120 mmcf surplus capacity remains unused in the eight wells of the Shahbazpur and Bhola gas fields.
Due to the lack of pipeline and transmission facilities, the government of Bangladesh was unable to supply the surplus gas from the Bhola field to energy-hungry industrial zones in Dhaka and elsewhere.
Many big industries using illegal gas connections: Nasrul Hamid
Bangladesh's State Minister for Power, Energy and Mineral Resources has urged the businessmen to stop the use of illegal gas connections.
“Whenever we visit a factory, we find that if there is a legal gas connection, there are three more illegal connections bypassing the main one”, he told a seminar at Dhaka Chamber of Commerce and Industry (DCCI) where a good number of leading entrepreneurs representing different sectors including textile and readymade garments were present.
“Please stop these illegal gas connections. Your illegal connections actually deprive other industries of getting their right to using gas”, he told the businessmen.
He also said,”I don’t want to publish the list of those industries. The Names of many large and leading industries are there. They are very much influential.”
Read more: BGMEA wants illegal gas connections to be snapped
The DCCI organised a seminar titled: “Stakeholders’ Dialogue on Energy Strategy: Towards a Predictable Future” with its president Barrister Md Sameer Sattar.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hasan, energy expert and Dhaka University Professor Badrul Imam, former FBCCI president Shafiul Islam Mohiuddin, Summit Power director Faisal Karim Khan, Pran RFL Group chairman Ahsan Khan Chowdhury, and Foreign Investors Chamber of Commerce and Industry (FICCI) president Naser Ezaz Bijoy spoke on the occasion.
Making a presentation on the current scenario and the government’s future plan Nasrul said the government is planning to build a land-based LNG terminal at the Matarbari deep sea port within 4 years at a cost of $4 billion.
“It will help ensure energy security, especially in the import of gas from abroad. If this land-based terminal is built, there will be no need to remove the terminal to the deep sea during any storm,”he said.
Read more: Govt moves to setting power, gas prices based on international market: Nasrul
Secondly, large ships will be able to arrive in the port with 18 meter water depth which will reduce the transportation cost, he added.
The seminar witnessed a debate between the state minister and Professor Badrul Imam on the issue of gas exploration across the country for finding more gas.
Nasrul said that he is confused whether there is no gas in the country or any more gas in the country.
Responding to this remarks, Prof Badul Imam said there is nothing to be confused with availability of gas in the country as many international research groups including USGS proved their scientific research and data that still the country has a reserve of between 32 and 42 Trillion Cubic Feet (TCF) of gas.
Read more: Petrobangla initiates move to end foreign company’s monopoly in pre-paid gas metering system
"Recent finding of gas in Bhola also proves the presence of more gas in the country,”said Dr Imam.
Nasrul Hamid also said that the government will not allow industries to be developed without any specific industrial zone to ensure the planned supply of gas and electricity.
He said that the government will allow the private sector to come into the energy business so that any enterprise can import gas and supply to any industry with its own choice at their negotiated rate.
He reiterated the government plan to set the prices of power, gas and petroleum fuels on the basis of international market price.
Read more: No downward adjustment in power, gas tariffs until stability in fuel price: Tawfiq Elahi
“We’re working on it to come out of the current trend of subsidy provision for the energy sector,”he said.
He, however, said there is no plan of the government to raise gas or power prices before the coming budget.
FICCI president Naser Ezaz Bijoy said transparency is needed to fix the energy prices.
Former DCCI president Sabur Khan said the illegal gas consumers should be brought under law.
Read more: ACC acquits 5, inc. recent minister's son in illegal gas connections case
Bangladesh needs $170 billion investment in power,energy sector by 2041: Nasrul
State Minister for Power, Energy and Mineral Resources Nasrul Hamid has said that Bangladesh requires $170 billion dollars investment in the power and energy sector by 2041.
He said while addressing a session on "Strengthening the Future of Economic Growth of Bangladesh" at the high-level discussion meeting titled "U.S.-Bangladesh Economic Partnership: Shared Vision for Smart Growth" organized by the US Chamber of Commerce in Washington DC on Tuesday.
“There are profitable investment opportunities in different sectors and sub-sectors like LNG, renewable energy, smart grid, smart distribution, electric vehicle infrastructure, onshore and offshore hydrocarbon exploration,” said the state minister.
Read More: Investment in Bangladesh will bring huge success: PM Hasina to Japanese businesses
He also said that upgrading gas infrastructure, setting up petrochemical industries, reducing GHG emissions, smart gas distribution are among the sectors where US companies can invest and the government will provide special incentives to foreign investors.
He said that Prime Minister Sheikh Hasina has given the vision of building a smart Bangladesh to build the golden Bangladesh as dreamt by Father of the Nation Bangabandhu Sheikh Mujibur Rahman.
“It needs financial investment as well as technical and knowledge-based cooperation to realise the vision,” he said adding that investment should come not only from multilateral development agencies, but also from the public and private sectors.
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Eric Walker, president of Chevron's Bangladesh office and Dr. John Ardil, vice president of Exxon Mobil also addressed the event.
Govt expedites gas exploration activities to increase primary fuel supply: Nasrul Hamid
State Minister for Power, Energy and Mineral Resources Nasrul Hamid has said that the government has initiated a move to expedite the gas exploration and production activities in the country to increase the primary fuel supply.
“All the planning is being undertaken targeting to build a developed Bangladesh by 2041”, he told a seminar on energy security at the Bangladesh Business Summit 2023 at the Bangabandhu International Conference Centre (BICC) in the city on Sunday.
He said the country has already achieved a target to reach electricity to all the doorsteps.
“Now we have one hundred percent access to electricity”, he said adding that the government is now working to ensure an uninterrupted power supply.
Abul Kalam Azad, former principal secretary to the Prime Minister, made a keynote presentation on the present state of energy security, future initiatives and the challenges of renewable energy at the seminar.
Power secretary Habibur Rahman, president of International Chamber of Commerce Bangladesh Mahbubur Rahman, Summit Group chairman Mahbubur Rahman, GE Gas Power South chief executive officer Asia Deepesh Nanda, and Max Group chairman Golam Mohammad Alamgir also spoke on the occasion while eminent energy expert Prof Ijaz Hosain moderated the event.
Nasrul Hamid said that the development activities of Bangladesh should be taken considering the context of Bangladesh.
Electrification in remote areas has expanded area-based development. As a result, he said, a balanced development is ensured.
He also discussed natural gas, LNG, LPG, future electricity and energy planning, mineral coal, fuel mix, clean energy, energy conservation, and versatile sources of energy at the seminar.
Japan's cooperation sought in power, energy sectors
State Minister for Power, Energy and Mineral Resources Nasrul Hamid has sought cooperation from Japan to implement Bangladesh's integrated energy and power master plan.
"Japan can help prepare and implement a smart and detailed master plan which will take forward other sectors from behind,” he told Iwama Kiminori, the newly appointed Japanese Ambassador to Bangladesh, while making a courtesy call on him at the power and energy ministry on Tuesday.
The state minister said that a smart power and energy master plan is needed for a smart Bangladesh.
Welcoming the newly appointed ambassador of Japan, he said Bangladesh will require $30 billion in investment in the next 5 years to implement the projects to be undertaken under the master plan.
He floated an idea that a joint operation and maintenance company could be formed which could save both money and time for Bangladesh.
"JICA can support Bangladesh Power Management Institute to make it an international standard institution," he added.
During the meeting they discussed various issues related to mutual interest.
Progress of different projects in the power and energy sector including Matarbari Power Hub, underground cables and sub-stations, prepaid meters, smart meters, gas meters and upcoming projects also came up for discussion.
The ambassador thanked the State Minister for 100 percent electrification and said that Japan will always cooperate in the development activities of Bangladesh.
He said Japan International Cooperation Agency (JICA) will work on capacity building for human resource development in Bangladesh.
Iwama Kiminori said that many more small and large Japanese companies are showing interest in coming to Bangladesh after witnessing the success of the Japanese company ONUDA in manufacturing gas meters.
He also said that the concept of 'Smart Bangladesh' will transform Bangladesh into a developed Bangladesh by 2041.
Adani’s 750 MW power to come to national grid in March: Nasrul Hamid
The electricity of Indian Adani Group’s Jharkhand power plant will cost Tk 22 per unit as import to Bangladesh is expected to start from March this year, according to a Power Division media statement issued on Tuesday (January 03, 2023).
State Minister for Power, Energy and Mineral Resources Nasrul Hamid visited the Jharkhand power plant on Tuesday.
Power secretary Habibur Rahman and BPDB chairman Mahbubur Rahman accompanied the state minister during the visit.
During the visit, Nasrul told reporters that Bangladesh will receive the electricity from March this year for which a dedicated transmission line has been installed.
Read more: The Tk 700 crore per month hole in the deal with Adani Power
“Power import from the Adani’s Jharkhand plant will be possible from March”, a Power Division media statement quoted him as saying.
“Initially we’ll get about 750 MW from the plant. We need more electricity to meet our demands in the coming summer”, it said.
Adani's Jharkhand coal-fired power plant will have a total of 1,600 MW capacity from two units, each having 800 MW.
“We’re looking for alternative sources of energy. We’ve been working giving priority on uninterrupted power supply at affordable prices”, Nasrul said.
Read more: Introduce smart management system in power grid: Nasrul Hamid
The Adani Group, very close to Indian Prime Minister Narendra Modi, set up the 1600 MW power plant in India’s eastern state of Jharkhand under a deal signed on November 5 in 2017 to export its entire electricity to Bangladesh.
Power Grid Company of Bangladesh (PGCB) constructed two substations at Chapainawabganj and Bogura in Bangladesh and also a transmission line to import the electricity.
Meanwhile, officials of the BPDB are concerned about the tariff of the imported electricity from the Jharkhand plant as its cost will be almost double of the electricity to be generated from locally installed Payra power plant, a joint venture of Bangladesh and China.
They said Bangladesh will incur a huge financial loss to the tune of about Tk 700 crore per month, once it starts importing electricity from the Adani 1,600 MW thermal power plant in Godda, Jharkhand state - due to the ‘flawed’ deal the government signed with the private Indian company.
Read More: Pay production cost to get smooth supply of gas, electricity: PM Hasina tells industries
“Including the cost of coal and its transportation, we have to pay Tk 2,100 crore per month to import 1,600 MW from Adani's plant at a 75 percent plant factor considering the existing rates of coal in the international market," a top official of the state-owned BPDB told UNB.
If some rules and provisions observed in other similar deals (from the private sector, coal-fired) had been maintained here, the cost could have been kept down to Tk 1400 crore per month. The country has to count a loss of about Tk 700 crore per month, working out to Tk 8400 crore annually for the flaws in the deal, he added.
Over the project’s life cycle of 25 years, the loss in terms of the increased cost and hidden components in the tariff Bangladesh will ultimately incur Tk 2.10 lakh crore - a third of the national budget - considering the current coal price, the senior official noted.
The BPDB official said the lack of a provision for discounts in the purchase of the coal that will be used to fuel the plant is an oversight, considering such a provision was made mandatory in other deals that Bangladesh signed with independent power producers (IPP), where the price of coal to be purchased was kept as “pass-through”.
Read More: Ensuring access to electricity at an affordable cost is govt’s prime goal: PM’s Energy Advisor
Explaining the matter, he said Adani will purchase the coal for its power plant as primary fuel and Bangladesh will pay the price of the coal.
Normally, the coal price is calculated on the basis of the Newcastle Price Index, and if any company purchases coal at a higher quantity with higher calorific value, then it gets upto 55 percent discount on the bulk value.
This was the provision kept in the power purchase deal from the 1320 MW Payra power plant, a joint venture project of Bangladesh and China, where BPDB is benefiting from the discount in the price of coal.
“But BPDB will not get any discount in coal price which ultimately pushes up the electricity tariff from the Adani plant by at least 50 percent,” said the official who has been involved in handling the project from BPDB.
Read More: Electricity generation disrupted as Kaptai Lake’s water level decreasing
As a result, if the price of electricity from Bangladesh's Payra Power Plant is calculated at Tk 12-13 per unit including the cost of coal, the price of per unit electricity from Adani plant will be about double at Tk 20-22 per unit, he added.
Introduce smart management system in power grid: Nasrul Hamid
State Minister for Power, Energy and Mineral Resources Nasrul Hamid has urged the officials of the Dhaka Power Distribution Company Limited (DPDC) to introduce a smart management system in their power grid as part of the government’s goal to build a Smart Bangladesh.
“Developing human resource and technology-friendly people can play a vital role in building a Smart Bangladesh”, he said while speaking at a workshop titled: ``DPDC Smart Grid Pilot Project” at Bidyut Bhaban in the city on Sunday.
He said mass people take a bit of time to become technology-dependent. “But you have to play a role to encourage them to be modern and technology-dependent”, he told the DPDC officials.
Read: Many TIN holders failed to submit tax returns by extended deadline
He also urged the officials of the Bangladesh Rural Electrification Board (BREB) to initiate a move to bring their command-areas under a modern system.
“BREB should take a coordinated plan to introduce technology-friendly systems to coordinate their operations”, he added.
He also emphasised on adopting a smart-grid policy for all the departments under the country’s power system.
Under the pilot project, construction and expansion of substations, capacitor banks will be installed.
Read: Bangladesh Bank heist: Probe report submission deferred again to Feb 14
The smart grid project will include an integrated communication system, advanced sensing with artificial intelligence, advanced metering infrastructure (AMI), measurement infrastructure, comprehensive decision support, and easy to use system interfaces.
Initially this facility will be available in Satmasjid Road, Lalmatia, Asadgate and Jeegatla areas in the city which will gradually expand.
Sakhawat John Chaudhary, Managing Director of NKSOFT Corporation, USA made a presentation on how the smart grid project will work.
With DPDC managing director Bikash Dewan in the chair, the function was also addressed by director of Global Brand Communication, USA, Farzana Yasmin Asha, minister consular and head of cooperation of the European Union Maurizio.
If BERC delays decision on retail power hike proposals, govt to decide: Nasrul Hamid
State Minister for Power, Energy and Mineral Resources Nasrul Hamid has said that if the Bangladesh Energy Regulatory Commission (BERC) delays to decide on retail power hike proposals, then the Power Division will make its own decision.
He made the remarks while talking to reporters at the sideline of a stakeholders meeting on “Integrated Energy and Power Master Plan (IEPMP)”, organized by the Japan International Cooperation Agency, at a hotel in the city on Tuesday.
Outgoing Japanese Ambassador Ito Naoki also addressed the event.
Read more: BERC now to consult with govt before any move on retail power tariff hike proposals
Responding to a question on the role of energy regulator after the amendment to the BERC Act 2010 which gives the government arbitrary authority to increase the prices of power and energy bypassing the public hearing process, the State Minister said if the BERC takes so much of times in taking decision on price adjustment issue, then the government will take decision on its own. .
He said normally BERC will follow its own process to decide on the price adjustment. “But only in an emergency situation, the government will take the decision."
The BERC raised about 19.92 percent bulk power tariff on November 21 with effect from December 1.
Subsequently, six power distribution entities submitted their respective proposals to the BERC seeing a similar 19.44 percent hike in retail power tariff at consumer level.
Read more: Raising retail power tariff: 3 more distribution companies submit proposals
But within a week, the Cabinet on November 28 approved an amendment to the BERC Ordinance 2022 to empower the government to set fuel tariff on its own under special circumstances without waiting for the commission's public hearing and decision.
Nasrul Hamid said the government has been working to provide electricity at an affordable price.
“But the situation is not in the hands of the government as we have to depend on the global market for primary fuel import”, he added.
He, however, said the government is thinking of considering the petroleum fuel price adjustment in consistency with the global downtrend in energy price.
“We’ve asked the officials to examine whether we could adjust prices every three months keeping in line with the global market,” he added.
Geo-scientific data should be used in developing sustainable infrastructures: Nasrul Hamid
State Minister for Power, Energy and Mineral Resources Nasrul Hamid said on Wednesday that geo-scientific data should be used in developing sustainable infrastructures.
"There must be a reflection of the geo-scientific data in developing area-based master plan", he said while addressing a seminar on the findings of a project titled: "Geo-information for Urban Planning and Adaptation to Climate Change" at a hotel in the city.
Geological Survey of Bangladesh (GSB) and Federal Institute for Geosciences and Natural Resources (BGR) of Germany recently jointly conducted a survey in Barishal and Khulna City Corporations, Faridpur and Satkhira Municipalities and surrounding areas.
Read: Bulk power tariff hike won’t affect retail consumers right now: Nasrul Hamid
Under the project, a computerised digital database of geological, geo-technical and environmental information was created for the purpose of creating safe or minimally hazardous environment-friendly urban planning and development facilities.
He said that though the achievements of the GSB are satisfactory, it has to expand its areas of research.
"If we can apply advanced technologies in geological survey, the success ratio will be greater", he said adding there should be specific policy to use the geo-scientific data.
Read: All liquid fuel-based power plants will be phased out over next 2 years: Nasrul Hamid
With Senior Secretary of Energy Division Mahbub Hossain in the chair, the event was also addressed by LGRD Secretary Mohammad Ibrahim, Housing and Public Works Secretary Kazi Washi Uddin, German Ambassador Achim Troster, GSB Director General Mohammad Ilyas Hossain, BGR, German project coordinator Lena Maria Lorenzen, GSB project director Mohammad Ashraful Kamal, and BGR project manager Werner Buchert.