Published on 12:00 AM, May 01, 2012

Maiden gas compressor station opens

Pressure to improve in national grid

Chevron Bangladesh yesterday launched the country's first-ever gas compressor station in Habiganj, enabling the pressure constrained national grid to supply an additional 50 million cubic feet of gas per day.
Prime Minister Sheikh Hasina inaugurated the station at Muchai of Bahubal upazila under the north-eastern district.
The compressor will increase the capacity of the national grid by about 50million cubic feet of gas per day, mostly supplied from three Chevron operated gas fields, said Geoff Strong, president of the US-based energy corporation.
A gas compressor is a mechanical device that increases the pressure of gas by reducing its volume.
Bangladesh's gas production is currently limited by the capacity of the national grid, Strong said, adding the Muchai compressor station would boost the capacity of the pipeline by diverting the gas now flowing at a pressure of about 900 pounds per square inch.
The compressor will boost the pressure to over 1,100 pounds per square inch and the high-pressure gas will then be returned into the pipeline system from where it will flow south to Ashuganj, Dhaka and western Bangladesh at a rate of over 1.1 billion cubic feet per day.
"… we expect additional increases as we work with Gas Transmission Company Ltd to further optimise the system," Strong noted.
The new facility will come as a relief to the businesses, industries, power plants and fertiliser plants, whose operations have been being disrupted due to a shortage of gas supply. Even if they got gas, the pressure remained too low.
Speaking as the chief guest at the inaugural function, Sheikh Hasina thanked the US energy giant for completing the project within the stipulated time.
She said her government had opened up the energy sector for private companies as the country was facing gas and power crises.
Had the government given the two other projects of gas compressor stations -- now being installed in Ashuganj and Elenga under government initiative -- to the private sector, they would have been readied by this time and could have added more gas to the pipeline.
Chevron's production averages 980mmcfd, about 45 percent of the country's total gas generation.
Melody Meyer, president of Chevron Asia Pacific Exploration and Production Company Ltd, said the Muchai compressor station was one of several significant projects Chevron had undertaken, which would spur growth of natural gas production in Bangladesh.
She said her company was committed to helping Bangladesh build a vibrant natural gas industry.
Meyer also said stable regulatory, legal and fiscal frameworks were vital to energy security and to offer a secure, world class business climate.
Dan Mozena, US ambassador to Bangladesh, said the project was a great example of collaboration between the private sector and the government in response to the surging need for energy for a dynamic economy.
Due to years of underinvestment in the energy sector, the government has been struggling to meet the growing needs for gas. At present, the country produces 2,200 mmcfd of gas whereas the demand is over 2,500 mmcfd, according to state-run Petrobangla.
Finance Minister AMA Muhith, State Minister for Energy, Power and Mineral Resources Muhammad Enamul Huq, and Energy Secretary Mohammad Mejbahuddin also spoke.