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Gas supply likely to improve this month

2 new fields to add gas to national grid

Sharier Khan
Gas supply is likely to improve from this month as two new fields--Moulavibazar and Haripur - will supply gas to the national grid, and the off-shore Sangu field will increase its supply.
Sources said the three sources will raise daily gas production by around 100 million cubic feet per day (mmefd), enough to cover the supply shortfall this year. The demand for gas now is around 1,400 to 1450 mmefd.
Sangu gas production by British company Cairn that had declined to 110 mmefd is expected to go up to 130 mmefd within a week from today.
A year ago, Sangu used to produce around 150 mmefd but the field's depletion of reserve reduced production in recent times.
Moulavibazar gas field, discovered and developed by Unocal, will start production on March 20 and is expected to add 60 to 70 mmefd gas by the endof the month.
Haripur field, once known as a
nonviablc oil field, was recently developed by Sylhet Gas Field Company. Petrobangia expects the field will add 15 mmefd within a week.
But Petrobangia still needs a new gas pipeline from Sylhet to Ashuganj to transmit additional gas. Il is now negotiating with the Asian Development Bank (ADB) over financing construction of this pipeline.
Supply shortfall in the recent months lowered gas pressure across the country. This also resulted in lower power generation in the gas-fired power plants.
Power load shedding hovers around 600 mw to 900 mw on weekdays.
Meanwhile, Canadian Gas Field Niko Resources, which developed an abandoned gas field in Feni last year through a joint venture agreement with Bapex, recently threatened Petrobangla with stoppage of gas supplies unless it is paid all arrears.
Niko got into the deal bypassing any competition and conventional practices of the government by using political lobbyists. Consequently, it had no gas sales agreement with Petrobangla. In the face of supply shortfall, Petrobangla started taking Niko's gas a few months back without fixing any price or concluding a deal.
Niko now claims it has about $5 million in outstanding arrears. It is supplying 40 mmcfd gas.
Petrobangla sources said Niko has withdrawn its threat as Petrobangla warned of 'stern action' against it in public interest. Petrobangla however paid it about $2 million following the threat.