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Chevron’s gas hope hinges on pipeline

Sharier Khan
US oil company Chevron yesterday told the government that its three gas fields in Sylhet have the potential to increase gas production by 940 million cubic feet per day within 2013, almost half the country's present consumption.
But this increase production would not be possible unless the government takes up at least in one cross-country pipeline scheme to transmit the gas from Sylhet region to the midregions, Chevron Bangladesh's chief Steve Wilson said at a meeting with the energy ministry yesterday. He, however, floated the idea of two such pipelines.
His presentation comes against the back-
drop of an acute gas crisis that has hit power generation, fertiliser production, industries and homes. Petrobangla says the gas supply shortfall is around 400 million cubic feet per day, with the authorities giving a maximum gas supply of nearly 2,000 million cubic feet per day.
The high-level meeting, where Energy Adviser to the prime minister Towfiq-e-Elahi Chowdhury Bir Bikram was present, instantly decided to assign two national companies to jointly develop one such cross-country pipeline within 2012 in consultation with Chevron.
These two companies are the Gas Transmission Company Ltd (GTCL) and the Titas GasTYansmission and Distribution Company Ltd. Sources said Titas is financially very healthy and it would be able to finance a good partofsuchaproject
Officials of the ministry, Petrobangla, GTCL, Titas and others were present at the meeting
This would be the first such joint venture of two national companies, a competent source present at the meeting said. In one month's time, they would analyse data and consult Chevron to frame a pragmatic pipeline project along with an implementation time line. The ministry would sit again with these companies. It would organise an inter-ministerial meeting soon to ensure speedy implementation of this pipeline project.
Steve Wilson in his presentation showed that gas production from its Moulvibazar field can be increased by 300 million cubic feetperdayby2012.
Chevron's Jalalabad field can produce 90 million cubic feet per day more than what it produces now. But there is no additional
pipeline capacity to support this increased flow. It can increase yet another 200 million cubic feet perdaygasby2013.
Chevron can increase Bibiyana field's production by 360 million cubic feet per day between2012and2013.
Wilson noted that a part of this increased production can be consumed by the upcoming Bibiyana power project near the gas field, and through other means. Butmostofitneedstobe transmitted by constructing a pipeline between Bibiyana to Dhanua or from Muchai to Monohordiby2012-13.
Such a pipeline would need around $100-150 million to construct.
Chevron chief said the company expected to tap yet another 100 million cubic feet per day gas if its exploratory well in Block 7 (Patuakhali) proves to be successful next year.
Chevron is presently producing almost half the country's gas supplies under two production sharing contracts.