Bank of America wants to provide $ 50b to support BD's renewable energy sec

[eastwatch]

Some of the information that I have found regarding this project so far is that if US will invest the money it will be under PPP format. Some of the report has indicated Bank of America has set up a fund of 50 Billion USD to invest at the renewable energy related projects. Some report exclusively said that it is meant for Bangladesh.

As the report has indicated USA has stressed Bangladesh for gas exploration to meet energy needs. I think USA is try to get most of the gas exploration deal at the Bay of Bengal which so far Bangladesh government has denied except the 2 blocks which has already been awarded. I think this investment offer to lure Bangladesh more to give them the oil and gas exploration deal. I may be wrong but you can shed more light into it.

This is the news posted at the official website at the Dhaka Chamber of Commerce & Industries (DCCI):

It is true USA wants most of the BoB blocks to be assigned to its oil companies. This may be a reason that the USA is making the offer to invest $50 billion in BD's electricity sector. This proposal suits also BDs economic interest. However, I believe, US companies will not invest even one dollar in this sector until and unless the US companies found a good quantity of oil or gas in the BoB.

Discovering energy and building power stations are compatible with each other, and is a good business proposition. According to the output sharing deal with the US companies, both the companies and PetroBangla will get a certain percentage of output. The US companies are free to sell their share to a 3rd party, other than the GoB/PetroBangla.

So, if new power plant companies are already there, not only PetroBangla, but also the US companies will get a ready market to sell off their production. When the production rises and BD cannot consume any more, the US companies will certainly build LNG plants/ports, load their gas and ship it to their gas-hungry homeland.

 

[kalu_miah]

It is true USA wants most of the BoB blocks to be assigned to its oil companies. This may be a reason that the USA is making the offer to invest $50 billion in BD's electricity sector. This proposal suits also BDs economic interest. However, I believe, US companies will not invest even one dollar in this sector until and unless the US companies found a good quantity of oil or gas in the BoB.

Discovering energy and building power stations are compatible with each other, and is a good business proposition. According to the output sharing deal with the US companies, both the companies and PetroBangla will get a certain percentage of output. The US companies are free to sell their share to a 3rd party, other than the GoB/PetroBangla.

So, if new power plant companies are already there, not only PetroBangla, but also the US companies will get a ready market to sell off their production. When the production rises and BD cannot consume any more, the US companies will certainly build LNG plants/ports, load their gas and ship it to their gas-hungry homeland.

USA do not need natural gas from Bangladesh. It produces around 88% and imports 12% from Canada. USA has the 5th largest proven natural gas reserve, after Russia, Iran, Turkmenistan and Qatar:
List of countries by natural gas proven reserves - Wikipedia, the free encyclopedia
Gas Boom Projected to Grow for Decades - WSJ.com
U.S. Natural Gas Marketed Production (Million Cubic Feet)
The shaky logic of US natural gas exports - CSMonitor.com
Hydraulic fracturing - Wikipedia, the free encyclopedia

 

[eastwatch]

So be it if USA does not import gas from Bd. US companies are multinationals. They can sell off part of their share of gas to many other countries including japan. For another matter, USA has almost endorsed the Kyoto Protocol. Among all the fossil fuels, it is the natural gas that produces less amount of CO2 gas comparing to coal or oil. So, depending upon what policy the US govt adopts to reduce CO2 emissions, the consumption of gas may increase in that country. Anyway, multinationals have many markets, and the total consumption of natural gas will increase every year because it exhausts less CO2.

 

[kalu_miah]

So be it if USA does not import gas from Bd. US companies are multinationals. They can sell off part of their share of gas to many other countries including japan. For another matter, USA has almost endorsed the Kyoto Protocol. Among all the fossil fuels, it is the natural gas that produces less amount of CO2 gas comparing to coal or oil. So, depending upon what policy the US govt adopts to reduce CO2 emissions, the consumption of gas may increase in that country. Anyway, multinationals have many markets, and the total consumption of natural gas will increase every year because it exhausts less CO2.

Natural gas is definitely more eco-friendly due to its lesser carbon foot print, but the extraction using fracking method pollutes ground water for generations.