Revisit prices for more gas exploration: Mozena

The outgoing US ambassador in Dhaka has suggested revisiting the price structures to encourage an “aggressive exploration” of both on- and off-shore gas.

“I think finding and then tapping the nation’s gas supplies is the most cost-effective way to meet this (Bangladesh) surging economy’s energy needs,” Dan Mozena said.

He was addressing a business gathering at the port city Chittagong on Wednesday.

He termed the shortage of gas “a major constraint” on the Bangladesh economy.

“I long ago lost track of the number of apparel manufacturers and other industrialists who have complained that their aspirations to expand production are on hold until they can get access to increased gas supplies.

“My friends at KAFCO (in Chittagong) have told me of the many months that their huge facilities often sit idle for want of gas supplies to manufacture urea,” he said.

“I hope Bangladesh will revisit its gas pricing structures to encourage aggressive exploration both on-shore and off-shore for more gas,”

The government has recently contacted an Indian and an American company for exploration in the Bay of Bengal.

The prices had been fixed on the basis of high sulphur fuel oil price, which is between $ 100 and $200 per tonne.

The ambassador had earlier said many international oil companies, including those of the US, were interested in exploring gas in Bangladesh.

He said in a recent press meet that Bangladesh could ask whatever prices it felt was best for it and companies around the world would act on that price structure.

He said many US companies were exploring gas in Myanmar.

The ambassador also suggested Bangladesh continue to pursue with Myanmar the possibilities of importing gas, for he believed Bangladesh had the potentials to become “the next Malaysia, the next Thailand, the next Asian Tiger”.

He said that to become the next Asian Tiger, some critical decisions had to be taken regarding reforms in the education sector, upgrading of infrastructure, and resolving the challenges to governance.

Those, he said, were possible given the “sufficient will and commitment to do so”.