$150m WB fund sought for gas exploration

FE Team | Published: June 23, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FHM Humayan Kabir
The Energy Division has sought US$ 150 million worth of fund from the World Bank to finance exploration of gas as the current reserve of the natural resource will go dry by 2011.
The division has also appealed to the Washington-based donor for helping state-owned Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) in its efforts to conduct seismic survey in different areas for finding new gas reserve, drill at Semutang Gas Field, and develop gas transmission and distribution systems, Energy Division sources said.
The Energy Division in a letter recently requested the Economic Relations Division (ERD) to send the proposal for fund to the World Bank.
The ERD will send the fund proposal to the Washington-based lender within a short period, an ERD official said.
The Energy Division in its proposal to the WB said that as the country's existing gas reserve would finish by 2011, there was no option but to explore more gas.
According to Petrobangla, the total recoverable gas reserve at present in the country is less than 13 trillion cubic feet (TCF).
The proposal said: "As you (WB) have worked with the country's oil, gas and mineral corporation-Petrobangla and different gas companies to prepare the Gas Sector Master Plan (GSMP) and Strategy, so we expect necessary support further from you to develop country's energy sector and ensure the energy security."
Requesting for the $150 million fund, the Energy Division also said that Bank's support is imperative for gas field delineation to reassess reserve and improve production capacity.
The Energy Division requested to the Bank to support the BAPEX so that it could conduct geophysical and geological surveys in different areas in the country for gas exploration and develop the Semutang gas field in the Chittagong region.
According to Petrobangla, the BAPEX operated Semutang gas field was discovered in 1969, where the total proven reserve is 150.3 billion cubic feet (BCF).
In the proposal to the WB, the Energy Division said as the gas reserve in the offshore Sangu gas filed was falling gradually Chittagong, where many industries are concentrated, would be in a vulnerable position.
So, the gas reserve as well as transmission and distribution system will have to be improved and the WB's support is imperative in this respect, the proposal said.
Besides, the Energy Division has sought fund from the donor for supporting a project for augmentation of CNG supply in Dhaka-Chittagong regions and capacity building of the existing gas fields.
The Division in its letter requested the WB to send an appraisal mission to Bangladesh in July next to examine the requirement of $150 million fund for development of the energy sector.