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Friday, 18 May 2012

Chevron stands ready to increase gas production by 150 MMCFD

Construction of new pipeline required for addition gas intake

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Reported by: UNBconnect
Reported on: May 16, 2010 19:35 PM
Reported in: Business
News - Chevron stands ready to increase gas production by 150 MMCFD
Dhaka, May 16 - As the country has been suffering from acute power crisis due to gas shortage, the leading international oil company Chevron stands ready to deliver 100-150 million cubic feet gas per day (MMCFD) from its three fields, the company officials said.

The US-based Chevron has been operating for last several years in the three gas fields - Bibiyana, Molvibazar and Jalalabad - in the Sylhet region.

Chevron moved for enhancing its production capacity at the gas fields after receiving instruction from the state-owned Petrobangla soon after assumption of the office by the Awami League government last year.

At present, the Bibiyana field is producing about 700 MMCFD while Molvibazar 55 MMCFD and Jalalabad producing 140 MMCFD gas. Country’s total production is 1900 MMCFD against a demand of more than 2400 MMCFD.

Sources said Chevron has the ability to produce significant amount of additional gas from all its three fields, but the existing pipeline network has not the capacity to receive the additional gas.

The state-owned Petrobangla officials also admitted the limitations to receiving the additional gas from Chevron’s fields.

“The present North-South gas pipeline, which carry gas from upstream to downstream has not adequate capacity to intake more gas. When a gas compressor will be installed at Muchai point of the gas pipeline, we will be able to receive the additional gas from Chevron’s three fields,” said Petrobangla Chairman Dr. Hossain Monsur.

He noted that Chevron is installing the Muchai gas compressor.

The Petrobangla chief also said that another planned gas pipeline from Ashuganj-Bakhrabad is now under implementation. “If this pipeline is installed, we can easily enhance our gas transmission
capacity.”

As currently it is difficult to deliver more gas into the pressure-constrained existing pipeline, Chevron has started discussions with Petrobangla, GTCL and the Energy Ministry about building a new pipeline as an additional evacuation route.

Such a new pipeline, combined with additional investments Chevron could make in its fields, could go a long way towards helping solve the country's mid-term energy crisis, in two to three years.‪

There is also a requirement to install three big compressors that would help put more gas into the system.

Power Development Board (PDB) has continuously been blaming the gas shortage for the persisting power crisis.

A PDB official said they have to reduce their power production capacity by about 700 MW on account of gas shortage.

Many industry insiders believe that if the additional production capacity of the Chevron-operated fields is utilized to feed the power plants, at least 600-700 MW power could be generated easily from
different plants.

Many industries in and outside capital Dhaka and also in the port city of Chittagong remained closed due to power crisis.

The export-oriented readymade garment (RMG) sector is the worst sufferer of the power and gas crisis.
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