Govt to assess gas production potential
Wednesday, 16 June 2010
M Azizur Rahman
The government has decided to review the country's overall gas production potentials and future reserves to adopt an action plan for ramping up gas supplies across the country, top officials said Tuesday.
Energy ministry has already convened a meeting next week with all operating international oil companies (IOCs) to assess their capacities in scaling up production from their fields.
Officials of US major Chevron, UK's Cairn Energy, Irish Tullow, CanAdian Niko Resources have been asked to take part in the meeting with government high ups.
The ministry is assessing gas production potentials of the state-owned gas companies and drawing a clear picture of the country's overall gas supply position to reach an appropriate decision, said the official.
"We will take necessary steps for supplying additional gas from the existing fields after assessing their strength," a senior energy ministry official told the FE.
Officials said the government has decided to assess the country's overall gas supply scenario to decide on immediate measures for coping up with the mounting natural gas demand.
It has targeted to ramp up gas supplies by 2,323 million cubic feet per day (mmcfd) by 2015.
The latest technical glitch at Tullow-operated Bangura gas field and continuous slide in gas supply from Cairn-operated Sangu gas field have prompted the government to summon a meeting, they said.
Currently, the country's overall gas supply is hovering around 1880 mmcfd against the demand for over 2300 mmcfd.
The IOC's natural gas output reached 962 mmcfd as on June 15, which is over 51% of the country's total generation of 1880 mmcfd, while the state-owned companies produced 918 mmcfd or 49 per cent of the total output.
Of the total IOC gas in Bangladesh, US's Chevron produces the maximum 928 mmcfd and Cairn 35 mmcfd.
Production from Tullow and Niko operated fields is now halted.
The IOC's gas was only 24 per cent of the total gas output in the 2004, when average output by them was 300 mmcfd, while the state-run companies output was 939 mmcfd.
The IOC's share of the gas increased to 36 per cent in 2007 with their output reaching 557 mmcfd. The countrywide output totalled 1530 mmcfd.
Petrobangla says the country's proven gas reserves stand at around 6.50 trillion cubic feet (Tcf) and probable reserves at 5.5 Tcf.
Supply of gas will start diminishing from 2011 unless new gas fields are discovered, it said.
It forecasts that the country's current gas reserves will run out by 2014-2015 at current consumption rates.
The country's economy has been growing at an average of six per cent annually since 2003-2004 and expansion of industrial activities have raised the demand for energy causing a daily shortage of over 400mmcfd.
This has forced Petrobangla to suspend gas supplies to new industries. It also suspended the operation of three state-owned fertilizer factories to divert gas to other gas-guzzling industries.
Besides, a number of power plants with a total generation capacity of around 1000 megawatts (mw) are currently out of operation due to gas crisis.
The government has decided to review the country's overall gas production potentials and future reserves to adopt an action plan for ramping up gas supplies across the country, top officials said Tuesday.
Energy ministry has already convened a meeting next week with all operating international oil companies (IOCs) to assess their capacities in scaling up production from their fields.
Officials of US major Chevron, UK's Cairn Energy, Irish Tullow, CanAdian Niko Resources have been asked to take part in the meeting with government high ups.
The ministry is assessing gas production potentials of the state-owned gas companies and drawing a clear picture of the country's overall gas supply position to reach an appropriate decision, said the official.
"We will take necessary steps for supplying additional gas from the existing fields after assessing their strength," a senior energy ministry official told the FE.
Officials said the government has decided to assess the country's overall gas supply scenario to decide on immediate measures for coping up with the mounting natural gas demand.
It has targeted to ramp up gas supplies by 2,323 million cubic feet per day (mmcfd) by 2015.
The latest technical glitch at Tullow-operated Bangura gas field and continuous slide in gas supply from Cairn-operated Sangu gas field have prompted the government to summon a meeting, they said.
Currently, the country's overall gas supply is hovering around 1880 mmcfd against the demand for over 2300 mmcfd.
The IOC's natural gas output reached 962 mmcfd as on June 15, which is over 51% of the country's total generation of 1880 mmcfd, while the state-owned companies produced 918 mmcfd or 49 per cent of the total output.
Of the total IOC gas in Bangladesh, US's Chevron produces the maximum 928 mmcfd and Cairn 35 mmcfd.
Production from Tullow and Niko operated fields is now halted.
The IOC's gas was only 24 per cent of the total gas output in the 2004, when average output by them was 300 mmcfd, while the state-run companies output was 939 mmcfd.
The IOC's share of the gas increased to 36 per cent in 2007 with their output reaching 557 mmcfd. The countrywide output totalled 1530 mmcfd.
Petrobangla says the country's proven gas reserves stand at around 6.50 trillion cubic feet (Tcf) and probable reserves at 5.5 Tcf.
Supply of gas will start diminishing from 2011 unless new gas fields are discovered, it said.
It forecasts that the country's current gas reserves will run out by 2014-2015 at current consumption rates.
The country's economy has been growing at an average of six per cent annually since 2003-2004 and expansion of industrial activities have raised the demand for energy causing a daily shortage of over 400mmcfd.
This has forced Petrobangla to suspend gas supplies to new industries. It also suspended the operation of three state-owned fertilizer factories to divert gas to other gas-guzzling industries.
Besides, a number of power plants with a total generation capacity of around 1000 megawatts (mw) are currently out of operation due to gas crisis.