Chevron starts work to set up Muchai gas compressor for raising gas supply
Industrial sector may get increased gas in 2 years; ADB is likely to finance two gas compressor projects
Dhaka, Mar 11 (UNB) - US-based international oil company Chevron has started work for installation of gas compression station at Muchai in Sylhet to increase gas supply to other parts of the country.
The installation work was launched at a function at Rashidpur Gas Field on Wednesday.
Chevron Bangladesh president Steve Wilson, Sylhet Divisional Commissioner Golam Rabbani, Petrobangla Deputy General Manager Rezaul Islam and GTCL project director Amzad Hossain Bhuiyan were present at the function.
Official sources said Muchai will be the first of the three compressors Petrobangla is planning to install to boost the gas supply in the national grid which will immediately increase gas production to around 50-60 million standard cubic feet per day (MMSCFD).
The other two compression stations will be installed at Ashuganj and Elenga. Officials said when installation of the three compressors is completed, the benefit to daily gas production will be over 300 MMSCFD.
But cash crunch has been a great barrier on the part of Petrobangla to implement the gas compressors projects. In such a situation, the Petrobangla has sought support from the Asian Development Bank (ADB) which initially agreed to provide only US$ 55 million against total requirement of about US$ 150 million for the three projects.
As the donor’s support was inadequate, the Petrobangla looks for alternative source of funding and the Chevron came out to be an alternative financer for only one project. However, Petrobangla is still negotiating with the ADB for increased financial support.
ADB official in Dhaka told UNB that they have finalized a proposal to finance the rest two compressor projects. The proposal will be placed soon to the ADB board meeting for approval
The Chevron officials said that the setting up of a mega gas compressor at Muchai will be completed within nest 2 years and then it will play a vital role to increase gas supply to other parts of the country, particularly for energy- starved power, fertilizer and industry sectors.
For more than last three years, the country’s power, fertilizer and industry sectors have been experiencing severe gas crisis. Low pressure in gas supply has also been adversely affecting the industrial production.
Textile and garment sectors are the worst victim of the gas crisis. In recent days, a number of textile units and garment factories were forced to shut down due to low pressure in gas.
US-based international oil company Chevron will install the gas compressor at a cost of US$ 52.4 million under a deal with the state-owned Petrobangla.
The project cost, however, will be recovered by the Chevron in accordance with production sharing contract with Petrobangla.
As per deal, the Chevron will adjust the project cost through the cost recovery. Upon completion and cost-recovery, the compressor will be handed over to GTCL to operate.
The country’s total current daily gas production is around 1900 MMSCFD. The three compressors together would allow for approximately a 15 percent increase in gas supply per day.
The installation work was launched at a function at Rashidpur Gas Field on Wednesday.
Chevron Bangladesh president Steve Wilson, Sylhet Divisional Commissioner Golam Rabbani, Petrobangla Deputy General Manager Rezaul Islam and GTCL project director Amzad Hossain Bhuiyan were present at the function.
Official sources said Muchai will be the first of the three compressors Petrobangla is planning to install to boost the gas supply in the national grid which will immediately increase gas production to around 50-60 million standard cubic feet per day (MMSCFD).
The other two compression stations will be installed at Ashuganj and Elenga. Officials said when installation of the three compressors is completed, the benefit to daily gas production will be over 300 MMSCFD.
But cash crunch has been a great barrier on the part of Petrobangla to implement the gas compressors projects. In such a situation, the Petrobangla has sought support from the Asian Development Bank (ADB) which initially agreed to provide only US$ 55 million against total requirement of about US$ 150 million for the three projects.
As the donor’s support was inadequate, the Petrobangla looks for alternative source of funding and the Chevron came out to be an alternative financer for only one project. However, Petrobangla is still negotiating with the ADB for increased financial support.
ADB official in Dhaka told UNB that they have finalized a proposal to finance the rest two compressor projects. The proposal will be placed soon to the ADB board meeting for approval
The Chevron officials said that the setting up of a mega gas compressor at Muchai will be completed within nest 2 years and then it will play a vital role to increase gas supply to other parts of the country, particularly for energy- starved power, fertilizer and industry sectors.
For more than last three years, the country’s power, fertilizer and industry sectors have been experiencing severe gas crisis. Low pressure in gas supply has also been adversely affecting the industrial production.
Textile and garment sectors are the worst victim of the gas crisis. In recent days, a number of textile units and garment factories were forced to shut down due to low pressure in gas.
US-based international oil company Chevron will install the gas compressor at a cost of US$ 52.4 million under a deal with the state-owned Petrobangla.
The project cost, however, will be recovered by the Chevron in accordance with production sharing contract with Petrobangla.
As per deal, the Chevron will adjust the project cost through the cost recovery. Upon completion and cost-recovery, the compressor will be handed over to GTCL to operate.
The country’s total current daily gas production is around 1900 MMSCFD. The three compressors together would allow for approximately a 15 percent increase in gas supply per day.
Comments
No Comments on this News
