Chevron Corporation announced Tuesday that its Bangladesh subsidiary has commenced natural gas production from the Bibiyana Expansion Project in the northeastern part of the country.
The project includes an expansion of the existing gas plant to process increased natural gas volumes from the Bibiyana field, additional development wells and an enhanced gas liquids recovery unit, a company statement issued from San Ramon, Calif spelled out.
The project is expected to boost Chevron-operated natural gas production capacity in Bangladesh by more than 300 million cubic feet per day to 1,400 mmcfd.
In addition, the project is expected to increase the company-operated natural gas liquids production capacity by 4,000 barrels per day to 9,000 barrels per day.
Chevron's Bangladesh subsidiary has a 99 per cent working interest in Bibiyana.
"The Bibiyana expansion represents Chevron's commitment to developing new resources to meet energy demand in Asia," said Jay Johnson, senior vice president, Upstream, Chevron Corporation, in the statement.
"The expansion is one of a slate of projects across the region that will deliver on Chevron's strategy to grow profitably in core areas," he added.
Melody Meyer, president, Chevron Asia Pacific Exploration and Production, said that as the leading international investor in Bangladesh, Chevron values its partnership with the people of Bangladesh in support of the nation's energy security and long-term economic development.
"The Bibiyana Expansion Project is a further example of our commitment to invest for the long term and create value for our partners and the communities that we serve," he added.
As of October 27, 2015 the Bibiyana gas field supplied 896 mmcfd of natural gas to the national grid from 17 producing gas wells.
In July 2012, Chevron announced a $500 million investment plan for gas plant expansion, new development wells and an enhanced liquids recovery unit.
Chevron has also proposed to drill three new development wells at its Jalalabad gas field in Sylhet, a senior Petrobangla official said.
If approved, Chevron will drill these three development wells in the coming winter, said the official.
Chevron Bangladesh is expected to invest $130 million in the Jalalabad Growth project, increasing natural gas output by a further 90 mmcfd up from present 247 mmcfd.
The country's overall natural gas production was 2,408 mmcfd as of October 27, 2014.
Chevron alone produced 1,212 mmcfd of gas from three onshore gas fields in Bangladesh -- Bibiyana, Jalalabad and Moulavi Bazar -- located in blocks 12, 13 and 14, respectively in the country's northeast Sylhet region.
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