Gas crisis may ease next year

The country's decade-old chronic gas crisis may ease to a great extent within the next six months, largely due to increased gas production from Chevron's Bibiyana and Jalalabad gas fields and a few Bapex fields.

The country is being dogged by 500 million cubic feet per day (mmcfd) gas shortage, equivalent to a quarter of the demand, affecting from kitchen stoves to power generation.

Chevron has already undertaken a $500 million project to increase gas production from the Bibiyana gas field.

“This $500m flagship project, one of the largest foreign investment projects in Bangladesh's history, is critical for the country's energy security,” says Geoff Strong, Chevron Bangladesh president.

“Once fully operational, the project will deliver an additional 300 million cubic feet of natural gas per day, and 4,000 barrels of condensate. Since 2011, we have drilled 11 new development wells at Bibiyana, with plans to complete three more this year,” he said.

“The other key project is Chevron's Jalalabad drilling programme. Jalalabad is currently the third largest gas production field in Bangladesh. We are investing to further increase production from the field in order to meet Bangladesh's growing demand for low-cost, home-grown energy. We plan to drill three new development wells at Jalalabad next year,” Geoff said.

The Bibiyana expansion project work has also revealed that the field has 5.2 trillion cubic feet gas, up by one tcf than previously certified, and is capable of producing 1.1 billion cubic feet a day without harming the gas field structure.

Petrobangla sources said Chevron had mobilised drilling rig from Bibiyana expansion project to Jalalabad where it would drill three new wells from January, each at a cost of $17 million, to augment gas production by 70 mmcfd to 90 mmcfd.

With 1.4 tcf gas in place, the field is currently producing 235 mmcfd and a three-dimensional study would update the field's actual reserve next year.

“Jalalabad is producing gas since 1999. Considering its production history and gas production pressure, we can assume that its reserve would be bigger than previously assessed,” said a Petrobangla official.

Meanwhile, Bapex is working to add 100 mmcfd gas from five wells in its small fields in Srikail, Semutang, Begumganj and Mobarakpur. Of them, its Srikail new field is expected to add 50 mmcfd. Drilling of each of the wells would cost Tk 110 crore.

Besides this, under an unsolicited deal with Russian company Gazprom, Petrobangla would add another paltry 50 mmcfd gas. Gazprom was awarded an unsolicited contract two years ago for $200 million to drill 10 wells in the government owned gas fields to add 200 mmcfd gas. But its drilling efforts proved to be cost ineffective as those did not provide the expected results.

Gazprom is currently drilling the 10th well in Shahbazpur field in Bhola, which is cut off from the national gas grid.

A good part of Bibiyana's new gas will be used in three large power projects being built near the gas field. Therefore, the national gas grid would not get the direct benefit of this increase. However, the new gas from Jalalabad would cover this deficit.

Due to very high gas demand, a new gas compressor station launched in Ashuganj a month ago to stabilise gas pressure failed in its mission.

Gas shortage has been affecting power generation to home users and it is seen as a major hurdle for the country's industrial growth.