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2.1.2 Energy Sector <strong>in</strong> Bangladesh<br />

Primary Commercial Energy Resources<br />

About 60% <strong>of</strong> the total primary energy <strong>in</strong> the country comes <strong>from</strong> commercial energy sources<br />

(NEP, 2006, p. 1).<strong>The</strong> primary commercial energy resources <strong>in</strong> Bangladesh are natural gas<br />

and recently discovered coal. <strong>The</strong> recoverable proven and probable natural gas reserve <strong>in</strong> the<br />

country is 20.51 Trillion Cubic Feet (TCF) and the cumulative production up to June, 2004<br />

was 5.90 TCF (BBS, 2007, p. 244). <strong>The</strong> total gas consumption <strong>in</strong> 1999-00 and 2004-05 was<br />

8780 MMCF and 12922 MMCF respectively (BBS, 2007, p. 251). <strong>The</strong> average growth <strong>of</strong> gas<br />

consumption <strong>in</strong> the last six years is 7.86%. (ibid and own calculation) With this average<br />

growth <strong>of</strong> consumption the reserve <strong>of</strong> natural gas could susta<strong>in</strong> the country up to the year<br />

2020 without any discovery <strong>of</strong> new gas fields (BBS, 2007, p. 244, 246, 251 and own<br />

calculation). Natural gas is used both as primary and secondary fuel <strong>in</strong> the energy mix <strong>of</strong> the<br />

country. Figure 2.2 shows the consumption <strong>of</strong> natural gas <strong>in</strong> different sectors.<br />

<strong>in</strong> MMCM<br />

4500<br />

4000<br />

3500<br />

3000<br />

2500<br />

2000<br />

1500<br />

1000<br />

500<br />

0<br />

Figure 2.2 Consumption <strong>of</strong> natural gas by category <strong>of</strong> sectors<br />

3976<br />

2661<br />

1463<br />

7<br />

137<br />

1486<br />

1199<br />

Power Fertilizer Industrial Commercial Domestic Others<br />

Sector<br />

Source: BBS, 2007, p. 246 and own plott<strong>in</strong>g<br />

<strong>The</strong> proven coal reserve <strong>in</strong> Bangladesh is estimated at over 1 billion tons which is equivalent<br />

to 38 TCF <strong>of</strong> natural gas which is more than three times the rema<strong>in</strong><strong>in</strong>g proven and probable<br />

gas reserve <strong>in</strong> the country (NEP, 2006, p. 15).

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