Chevron installing gas compression station in Sylhet
Friday, 12 March 2010
US-based international oil company Chevron has started work for installation of gas compression station at Muchai in Sylhet to increase gas supply to other parts of the country, reports UNB.
The installation work was launched at a function at Rashidpur Gas Field Wednesday.
Chevron Bangladesh president Steve Wilson, Sylhet Divisional Commissioner Golam Rabbani, Petrobangla Deputy General Manager Rezaul Islam and GTCL project director Amzad Hossain Bhuiyan were present on the occasion.
Official sources said this would be the first of the three compressors Petrobangla was planning to install to boost gas supply in the national grid. Muchai compressor would immediately increase gas production to around 50-60 million standard cubic feet per day (MMSCFD), it added.
The other two compression stations will be installed at Ashuganj and Elenga. Officials said when installation of the three compressors was completed, the benefit to daily gas production would be over 300 MMSCFD.
But cash crunch has been a great barrier on the part of Petrobangla to implement the gas compressor projects. In such a situation, the Petrobangla has sought support from the Asian Development Bank (ADB) that initially agreed to provide only US$55 million against total requirement of about $150 million for the three projects.
As the donor's support was inadequate, the Petrobangla looked for alternative source of funding and the Chevron came out to be an alternative financier for only one project. However, Petrobangla is still negotiating with the ADB for increased financial support.
ADB official in Dhaka told the news agency that they had finalised a proposal to finance the rest two compressor projects. The proposal will be placed soon to the ADB board meeting for approval.
The Chevron officials said that the setting up of a mega gas compressor at Muchai would be completed within the nest two years and then it would play a vital role to increase gas supply to other parts of the country, particularly to energy-starved power, fertiliser and industry sectors.
For more than last three years, the country's power, fertiliser and industry sectors have been experiencing severe gas crisis. Low pressure in gas supply has also been adversely affecting the industrial production.
Textile and garment sectors are the worst victims of the gas crisis. In recent days, a number of textile units and garment factories were forced to shut down due to low pressure in gas.
The installation work was launched at a function at Rashidpur Gas Field Wednesday.
Chevron Bangladesh president Steve Wilson, Sylhet Divisional Commissioner Golam Rabbani, Petrobangla Deputy General Manager Rezaul Islam and GTCL project director Amzad Hossain Bhuiyan were present on the occasion.
Official sources said this would be the first of the three compressors Petrobangla was planning to install to boost gas supply in the national grid. Muchai compressor would immediately increase gas production to around 50-60 million standard cubic feet per day (MMSCFD), it added.
The other two compression stations will be installed at Ashuganj and Elenga. Officials said when installation of the three compressors was completed, the benefit to daily gas production would be over 300 MMSCFD.
But cash crunch has been a great barrier on the part of Petrobangla to implement the gas compressor projects. In such a situation, the Petrobangla has sought support from the Asian Development Bank (ADB) that initially agreed to provide only US$55 million against total requirement of about $150 million for the three projects.
As the donor's support was inadequate, the Petrobangla looked for alternative source of funding and the Chevron came out to be an alternative financier for only one project. However, Petrobangla is still negotiating with the ADB for increased financial support.
ADB official in Dhaka told the news agency that they had finalised a proposal to finance the rest two compressor projects. The proposal will be placed soon to the ADB board meeting for approval.
The Chevron officials said that the setting up of a mega gas compressor at Muchai would be completed within the nest two years and then it would play a vital role to increase gas supply to other parts of the country, particularly to energy-starved power, fertiliser and industry sectors.
For more than last three years, the country's power, fertiliser and industry sectors have been experiencing severe gas crisis. Low pressure in gas supply has also been adversely affecting the industrial production.
Textile and garment sectors are the worst victims of the gas crisis. In recent days, a number of textile units and garment factories were forced to shut down due to low pressure in gas.