Energy-starved Bangladesh is working on a 20-year plan to attract foreign investment that would boost supplies of natural gas, the country's principal power source, the energy minister said on Saturday.
The World Bank and Asian Development Bank are providing $1.5 million to prepare the plan, which will detail long-term needs and achievable production levels through 2024, the minister, A.K.M. Mosharraf Hossain, told Reuters in an interview.
Mosharraf said Bangladesh needed up to $2 billion of investment to meet growing demand for gas. He said the plan would include provisions for using the country's huge coal reserves for generating power.
"The plan would focus on the country's increasing demand for gas and power over the next 20 years and ways to harness them by using available means and bringing in foreign investment," the minister said.
He said Bangladesh's state-run Oil, Gas and Mineral Corp (Petrobangla) had been given the primary task of preparing the plan.
"If we do not draw the plan now, we won't be attract investors. Also, multi-lateral donors will be reluctant to give us aid for the energy sector," Mosharraf said.
"This (plan) is the precondition we need to fulfil to get continuing assistance from donors," the minister said, without elaborating.
Bangladesh signed a landmark letter of intent this month with India's Tata conglomerate for an expected $2 billion investment in the country, including a power station.
The deal would be the largest ever foreign investment in Bangladesh. Officials hope it will attract other overseas investors, including from Taiwan.
So far Bangladesh has received more than $1 billion as foreign direct investment in the energy sector, officials said.
Petrobangla produces 1,365 million cubic feet (mcf) of gas per day from 53 wells in 13 gas fields against 1,400 mcf demand per day.
"Bangladesh will need to boost daily supply of gas to 3,324 mcf per day by 2020 to meet growing demand," Mosharraf said. "To meet this growing demand we have to invest up to $2 billion in the sector."
The 20-year master plan will also focus on other sources of energy, like coal.
The country has proven reserves of 64 million tonnes of high quality coal in a mine 450 kilometres (281 miles) north of Dhaka.
Bangladesh has 15.33 trillion cubic feet of proven and recoverable gas based on current estimates, which the minister said would be exhausted in 10 or 11 years if used at current rates.
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