Chevron to invest $400m, not leaving country: minister
Chevron intends to make fresh investment of $400 million in Bangladesh's gas sector in a development that can be termed quite a U-turn from the American oil giant's previous announcement to exit the country for good.
“Chevron has officially communicated its decision to the government,” said Nasrul Hamid, state minister for power and energy, at an event yesterday at the capital's Bidyut Bhaban, according to the UNB.
The fresh investment will go towards setting up a wellhead gas compressor at Bibiyana gas field to increase the gas pressure to the supply line.
The American oil giant's three gas fields -- Bibiyana, Jalabad and Moulvibazar -- account for 52 percent of the total 2,700 MMcf gas produced in Bangladesh.
In September last year, Chevron Corporation announced its plan to sell on its assets in Bangladesh.
Then on April 24, it announced that it had entered into an agreement to sell the shares of its wholly-owned indirect subsidiaries operating in Bangladesh to a Chinese consortium named Himalaya Energy Co Ltd.
Chevron's latest move will boost the confidence of other foreign companies to continue with their operations in Bangladesh, Hamid said.
“Many foreign companies are now showing interest in investing in Bangladesh's energy sector,” he added.
Contacted, Shaikh Jahidur Rahman, Chevron Bangladesh's communications manager, said: “Chevron regularly engages with national, regional and international stakeholders globally. As per our longstanding policy, we do not discuss specific meetings with government officials.”
Meanwhile, at the event yesterday, a contract was signed between Beximco Group's subsidiary Teesta Solar and the Power Development Board to set up a 200MW solar power plant in Gaibandha.
PDB will buy electricity from the plant at a tariff rate of $0.15 for 20 years on a 'no power, no payment basis'.
Hamid, however, expressed his frustration that although many companies signed deals to set up solar power plants, their plants did not come into operation.
From next year, about 2,500 MW of electricity will be added to the national grid as the country's power generation inches towards 24,000 MW in 2021.
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