Bangladesh eyes energy security beyond 2011

By Serajul Islam Quadir

DHAKA, Feb 19 (Reuters) - Bangladesh, struggling to ensure energy security after 2011 when its proven and recoverable reserves of gas runs out, will intensify efforts to diversify energy sources, a senior official said on Tuesday.

Bangladesh faces a shortage of 100 million cubic feet (mmcf) of gas every day now and if it fails to find and explore new natural gas reserves it will have a serious problem, said M. Tamim, a special aide to the head of the government for the ministry of power, energy and mineral resources.

"We must discover more gas and for that a third international tender has been issued to explore gas in the deep sea," he told a meeting of the American Chamber of Commerce in Bangladesh.

Tamim said up to 8 trillion cubic feet (tcf) of gas might be added to the country's 13.54 tcf of proven and recoverable gas by further exploring onshore and near-offshore fields.

"The (current) reserve is depleting fast and only after five years there may be a crucial crisis if we do not discover or import gas," Tamim told the meeting attended by American investors and businessmen.

Bangladesh can supply up to 1,738 mmcf of gas a day against a daily demand of 1,833 mmcf, officials said. If the present trend continues, its gas reserves will dry up by 2015.

Tamim said the country's army-backed interim authority -- which would likely stay in office until a promised election is held around the end of this year -- was also making efforts to import gas from neighbouring energy-rich Myanmar.

Bangladesh has been discussing importing gas through a pipeline from the military-ruled country in exchange supplying fertilizer to Myanmar.