Poor govt investment poses serious threat to energy security

Staff Reporter :
Inadequate government investment in country’s mineral resources extraction and overhauling continues which eventually aggravated the current energy shortage as well as threat to energy security in Bangladesh.

A recent estimation by the Geological Survey of Bangladesh (GSB), showed that the market value of existing mineral resources (excluding natural gas) in Bangladesh is around $ 2.26 trillion.
However, governments have not paid much attention or monetary allocation to extractand overhaul the mineral resources despite the country is suffering most from energy shortage in recent times.
The GSB has also revealed that no specific exploration has been conducted regarding the real reserves, proven reserves, and reserves of the mineral resources within the country.
The relevant policymakers also State that despite the abundance of mineral resources in the country, there has been no significant interest from the government at several times. As a result, the amount of investment in this sector has been consistently minimal year after year.

Besides, energy experts argued that the drop in gas extraction along with other energy sources was a threat to the country’s energy security.
They stressed the need for aggressive exploration for new reserves which means adequate government resource need to be allocated.
But the reality showed the reverse picture. For instance, the capacity of Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) in the country has been debated for decades. But no government has paid much attention or monetary allocation to enhancing the capacity of this state-owned institution.

Rigs and manpower required for exploration are not being increased. There is no government funding for a decade. Instead, the trend of gas exploration by

foreign companies is increasing, leaving BAPEX weak.
Wishing to be unnamed, a member of the Bangladesh Energy Regulatory Commission (BERC) said, “It was possible to increase the production of at least 40 wells and extract 400-800mmcfd by investing about $125 million, but the government didn’t do it. Suggestions mentioned in the 2011 report have largely been ignored.”

Meanwhile, the GSB estimated coal constitutes the majority with over 7.25 billion tons. Considering the market price of $175 per ton, the value of this quantity of coal stands at $ 1.26 trillion which nearly 55 percent of the total market value of existing mineral resources in Bangladesh.

Additionally, there is a probable reserve of pit coal of around 600 million tons, which at $60 per ton, amounts to approximately $ 35.9 billion.
In addition, there is a reserve of 25.27 billion tons of limestone, with a value of $ 758.1 billion at $30 per ton.
Hard rock has a reserve of 201 million tons, valued at $ 5.42 billion. The value of 230 million tons of white clay is 29.9 billion dollars.
Silica has a reserve of 5.117 billion tons, valued at $ 61.4 billion. The value of 2.20 billion tons of gravel is $ 33 billion, and the value of 620 million tons of iron is $ 68.8 billion.
Professor Badrul Imam, an eminent geologist from Dhaka University, said that the government’s initiatives and investments in this regard are not satisfactory.
There is no significant effort by the government to extract coal, natural gas on a large scale to mitigate the current or future demand, he expressed.