Primary fuel supply from own sources is gradually diminishing. From this consideration, the government plan is becoming more and more dependent on imported fuel. But the energy security of the country would get vulnerable if steady fuel supply cannot be ensured through development of import-enabling infrastructure on time.
Director of East Coast Group Tanzeem Chowdhury, who is also the Head of Corporate Planning & Business Development of Omera Petroleum Limited, said this in an exclusive interview with Energy & Power Editor Mollah Amzad Hossain.
How do you evaluate the development of the power and energy sector in the past ten years?
The achievement is remarkable. It has been possible due to the right kind of leadership, appropriate planning and well-coordinated execution. Bangladesh energy Sector has become an ideal case for the developing nations to study. Donor agencies, development partners, global energy giants, power company such as GE, Alstom, and Siemens are now very keen to promote investment in Bangladesh. If their investments can be secured in power & energy supporting infrastructure on time, Bangladesh can be a global energy hub in due course. We can also take advantage of our strategic geographical location as a transit hub of fuels too.
We are becoming increasingly dependent on imported fuel following the depletion of our own fuel reserve. Deep-sea ports are required for optimized fuel import. The challenge of optimized fuel import will be met to a great extent as under construction coal terminal and the planned deep sea port at Matarbari comes into operation.
Bangladesh can also follow China. Their public sector company Sinopecis investing in shale gas infrastructure in Canada. For energy security we can also consider investing in such gas assets abroad for uninterrupted supply of Natural Gas.
Private sector companies alongside the public sector are investing in power generation. Foreign companies forming joint venture with public sector companies are setting up large power plants at Payra, Rampal and Matarbari. The works of Rooppur nuclear power plant is advancing by Russian company as a Turn Key Project.
In addition to exploring our Oil & Gas Reserves in the Bay of Bengal, Bangladesh must go all out in constructing the essential fuel import & storage infrastructure, such Coal, LPG, LNG & Liquid Fuels terminal. This will ensure long-term energy security. Private sector investment must also be secured with this effort, as PPP is a well-established scheme, time is of the essence.
Do you think the government could approach in the right direction with the appropriate plans for achieving the vision 2021 and 2041 for reaching mid-income and developed economy status?
The plans adopted in the power and energy sector for achieving national vision are superb in my opinion. Power plants & Supporting Ports are under planning & implementation. Bringing these projects into operation on time is our challenge now. The concerned Government agencies and private sector contractors are working hand in hand with the common objective of making all projects operational on time.
The government is importing power from India under cross border power trading arrangement. Eventually power trading among regional countries must be done considering the demand scenario at different time and season through setting up real time regional grid and open access transactions.
East Coast Group as a local private sector company is working for a while in mine development, power generation plants, solar power, lubricating oil and LPG. What are your perspective investment plans?
We are Oil & Gas infrastructure-focused Group. In the last 30 years, we have invested in the largest LPG storage & distribution terminals (Omera LPG), State of the art Lube Oil blending facilities (MJL Bangladesh Limited), the largest automated Petroleum Product Terminal in private sector (Omera Fuels Limited) and the list goes on. We also have the largest fleet of Aframax Oil Tankers and Inland LPG Vessels. Our massive investment in petroleum infrastructure gives us the scalability and strength no others can replicate. Further we have implemented the best SHE and Quality Management Practices across our operations so we can deliver the best product experience to our clients and customers. Looking forward, our Management’s vision is to continue providing the best fuel products in the sub-continent and to reduce cost of fuel to the nation. This will help all our Citizens, Industrialists & Power Producers. We continue to source and utilize our time in such investments that will bring down cost of energy to all users.
You have not yet made any investment in power generation though a few local companies have already done that. Do you have a plan for this?
Our Group has built a good number of Power Plants in the past at Ghorashal and Siddhirganj. The current total generating capacity of these base load stations are approx. 1160 MW. Although we have no recent investment in Power, we provide backbone support to power producers. MJL Bangladesh Limited supplies majority of Lube oils to the power sector of Bangladesh & our subsidiary Omera Fuels Limited is state of the art petroleum product terminal that provides tankage & throughput to most of the countries demand of HFO for private power generation. We plan & continue to invest in providing such backbone to our power producers with the objective to bring down cost of energy at the consumer level.
You are the first local company pioneering the lubricating oil branding plant in joint venture with leading global energy company. Meeting the local demand, your product has entered world market. Some persons have raised questions about its quality. What are your reactions?
Let us start from the other side of the coin. MJL Bangladesh maintains absolutely the best international standards in all its Lubricant blending, processing & products (Mobil & Omera). Exxon Mobil has awarded MJL’s operations higher quality ratings than Singapore. This is remarkable and hence there are no questions about our quality. MJL is also the market leader in all lubricant segments and cover Nepal & Myanmar Lubricant market as well.
Some unscrupulous traders try to cheat Mobil Users by selling adulterated lubricants. Until they are bought to justice and such activities curtailed, Mobil Users should purchase their lubricants from designated outlets referred by MJL Customer Service Only.
Own discovered gas reserve of Bangladesh is progressively depleting. Bangladesh has started importing LNG. Do you have any plan for investment in any segment of LNG value chain?
Yes, the own discovered reserve of gas is diminishing and LNG import has started for supplementing the gas supply. FSRU has started regasifying LNG. But FSRU may not be to provide uninterrupted supply of RLNG due to our weather issues. We are looking at land-based LNG terminal investments. We, along with our development partners have plans for making substantially large investment in LNG import infrastructure in future.
Omera has been awarded the best LPG company 2018 very recently. What are your feelings? Coming a bit late in the LPG industry, Omera is already one of the leaders in the market. What are your future plans in the LPG sector?
The Omera brand equity, our promise to provide users with the best quality LPG solution & customer service has earned the confidence of all LPG users across Bangladesh. We have also bought massive innovation by joining hands with ‘Gas One’ company of Japan, to form the first Bangladesh Japan JVC in the Local Fuel Sector, Omera Gas One. Gas One bring 70 years of LPG Technology Experience and the massive LPG supply capability of Omera to all corners of Bangladesh goes from strength to s strength. We are setting up the largest number of Auto-Gas Stations, Industrial Gas Solutions and Reticulation Systems in Bangladesh, all in Japanese Standard.
The award is in recognition of our innovation in LPG supply & technology. We thank our Honorable Prime Minister for her Vision & Guidance, The Energy & Mineral Resources Division, GoB & our respective regulatory agencies. We are confident to lead the way in LPG Development for the foreseeable future. This is our second award as the best LPG company & a big boost for further improving our service in reaching LPG safely to all over Bangladesh
The government plan is to popularize LPG as environment-and health-friendly safe fuel for domestic use. Towards this end in view, we have developed a supply chain network across the country durable for all seasons of the year. We are working with different NGOs for popularizing LPG among rural areas and making them conscious about its safety during the use.
Some 13 companies are operating in the LPG market and another 7 is about to launch business. Do you think this number is too many in consideration of the market size?
I think 13 existing companies and 7 more would create gridlocks in short term.
The LPG market needs to grow sustainably or in healthy manner over the long term. Too many players will lead to intense competition and lack of focus on operational standards and safety by some entrants. This will go in contradiction to the Government’s Vision to promote LPG as a clean and safe cooking fuel.
Anyways, I believe there will be consolidation in the near future. LPG Operators with the right strategic planning, customer focus and product safety will remain in the market.
Safety is a key aspect in LPG supply chain. How you are ensuring it through the entire supply chain from bottling to the end users?
All the licensed ‘LPG Operators’ who are now in business as per Government Law, are maintaining international safety standards and observing Occupation, Health and Safety (OHS) across all segments of LPG supply chain upto the distributor and retail as well. The government can conduct public relation campaigns through all its public relation outlets and media for creating mass awareness about safe transportation and use of LPG by retailers and customers. Finally, the government must intensify monitoring through mobile courts to ensure safe transportation of LPG cylinders and curtail illegal cross filling.
Consumer groups are complaining about monopolizing LPG business with ulterior motives of price syndication. What do you say?
My views are just opposite. Rather, LPG cost to consumers in Bangladesh are cheaper than most of the other regional countries. In global market, the price of bulk LPG has increased significantly. But compared to that, the price adjustment in Bangladesh market remains minimal. Even then, if some sections of consumers think that Bangladesh LPG Operators are charging higher price, their notion is incorrect.
Rapid growth of power and energy sector has created huge crisis of competent human resources. LPG sector has also issues with experienced human resource. What actions you are taking to overcome this?
You are very correct. Fortunately, superior quality university graduates are now coming to the job market from our technical institutions and universities. After recruiting them, we are developing colleagues in sector/ function specific tasks through on the job training and also, when applicable, through oil & gas operational courses in overseas-accredited institutions.
We can also get better prepared graduates if Universities can set up linkages with industries and tailor-made their curricula for specific engineering functions. We are already working with some educational institutions to develop such schemes for Omera Petroleum Limited.
