Inquest of Sustainable Development: Regulatory Framework of Upstream Operation of Natural Gas in Bangladesh

Abstract

Natural gas has been playing a very important role in the economy of Bangladesh since the early 1960s. It has been the principal fuel and raw material for many industries in the country for a relatively long time due to its affordable price and widespread use. International Oil Companies (IOCs) and Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) are involved in the exploration and production of natural gas in Bangladesh. Exploration and production of petroleum involve great financial and technical challenges, and IOCs usually dominate international petroleum activity. One of the challenges for any petroleum-producing country is to accommodate the interests of the State against the objectives of the international oil companies. Extraction of any petroleum resource creates the demand for effective and sustainable extraction along with protection of the environment. Therefore, establishing an appropriate legal framework with regulatory and administrative institutions is essential to secure the sustainable development of the petroleum resources to ensure the benefit for current and future generations. This study explores the explicit usage and interpretations of the concept of “sustainable development” in the laws of Bangladesh related to petroleum operation and to explain how the international concept is being viewed and treated through the domestic legal framework. Bangladesh mainly produces natural gas as petroleum, and in this thesis, natural gas is interchangeably used with petroleum. The legal concepts, issues and problems underlying the sustainable extraction of natural gas in Bangladesh are analysed in this study in their practical sense and functional context. The study mainly incorporates the analytical methodology with a comparative approach as a method. The study adopts the triple bottom line approach of the Brundtland Commission’s definition of sustainable development in the oil and gas industry, namely economic growth, environmental stewardship and social progress. After analysing several instruments for measuring sustainable development of mining and petroleum resources, this study had selected six indices to explore how far the sustainable development concept is articulated in the development of petroleum resources. The selected indices are regulatory framework, environmental management, community consultation and public participation, access to information and good governance, conservation for future generation and cost-benefit analysis.