Pipeline accident prompts Tullow to halt gas supply
Wednesday, 9 June 2010
M Azizur Rahman
Irish company Tullow has stopped supplying gas from Bangora field under block-9 from Monday evening after a pipeline accident, deepening gas crunch in the already crisis-ridden Chittagong region, top officials said Tuesday.
The company halted entire production of 120 million cubic feet (mmcfd) per day from its Bangora field as the gas transmission pipeline got 'displaced,' Petrobangla chairman Dr Hussain Monsur told the FE Tuesday.
The pipeline was displaced after a big bang at around 6:30pm Monday evening.
The quantity of gas lost due to the Bangora accident is almost the same as what Petrobangla has been saving in the past several months shutting several gas-guzzling state-owned fertiliser factories.
Industries and power plants in the port city of Chittagong have already started feeling the pinch owing to the abrupt halt to gas production at Bangora field, industry insiders said.
This is the second incident of gas supply closure by foreign firms in the country within a month.
Last month the Canadian Niko Resources, which is also the major stake holder in Bangora gas field, stopped supply of gas from its Feni field over a long-pending payment dispute centring gas sales.
Niko is yet to initiate operation of the Feni field.
Officials said the latest halt in gas supply from Tullow-operated Bangora field would deteriorate the country's overall energy crisis as the government is already strained with the short supply of gas.
The government is now trying hard to cope with the gas supply shortfall closing down fertiliser factories and implementing rationing in industries.
Gas supply has remained stalled during the past several months as the authorities are struggling to meet demands of existing clients.
Regarding Bangora field, the Petrobangla chairman said the field would remain out of operation for at least three to four days.
An Irish expert team would reach the plant site shortly. It has already left the country for Bangladesh, he added.
Tullow officials could not be reached for comments over the Bangora accident despite repeated attempts Tuesday.
The company has raised gas output by 20 per cent in November 2009 on completion of a successful drilling of a new well, from the previous output of 100 mmcfd.
Tullow has a 30 per cent operating stake in block 9, with Canada's Niko Resources 60 per cent and Bapex 10 per cent.
The company started gas production from Bangora field in May 2006 at the rate of 70 mmcfd.
The company is also waiting to sign a fresh production sharing contract (PSC) for a new offshore gas block SS-08-05, for which it was selected under the country's 2008 licensing round
Tullow along with its partners - French Total, Thai PTTEP and US Oakland and Rexwood - relinquished exploration rights for blocks 17 and 18 in March 2009.
At present, Bangladesh produces around 1980 mmcfd of gas, while the demand exceeds 2200 mmcfd.
Irish company Tullow has stopped supplying gas from Bangora field under block-9 from Monday evening after a pipeline accident, deepening gas crunch in the already crisis-ridden Chittagong region, top officials said Tuesday.
The company halted entire production of 120 million cubic feet (mmcfd) per day from its Bangora field as the gas transmission pipeline got 'displaced,' Petrobangla chairman Dr Hussain Monsur told the FE Tuesday.
The pipeline was displaced after a big bang at around 6:30pm Monday evening.
The quantity of gas lost due to the Bangora accident is almost the same as what Petrobangla has been saving in the past several months shutting several gas-guzzling state-owned fertiliser factories.
Industries and power plants in the port city of Chittagong have already started feeling the pinch owing to the abrupt halt to gas production at Bangora field, industry insiders said.
This is the second incident of gas supply closure by foreign firms in the country within a month.
Last month the Canadian Niko Resources, which is also the major stake holder in Bangora gas field, stopped supply of gas from its Feni field over a long-pending payment dispute centring gas sales.
Niko is yet to initiate operation of the Feni field.
Officials said the latest halt in gas supply from Tullow-operated Bangora field would deteriorate the country's overall energy crisis as the government is already strained with the short supply of gas.
The government is now trying hard to cope with the gas supply shortfall closing down fertiliser factories and implementing rationing in industries.
Gas supply has remained stalled during the past several months as the authorities are struggling to meet demands of existing clients.
Regarding Bangora field, the Petrobangla chairman said the field would remain out of operation for at least three to four days.
An Irish expert team would reach the plant site shortly. It has already left the country for Bangladesh, he added.
Tullow officials could not be reached for comments over the Bangora accident despite repeated attempts Tuesday.
The company has raised gas output by 20 per cent in November 2009 on completion of a successful drilling of a new well, from the previous output of 100 mmcfd.
Tullow has a 30 per cent operating stake in block 9, with Canada's Niko Resources 60 per cent and Bapex 10 per cent.
The company started gas production from Bangora field in May 2006 at the rate of 70 mmcfd.
The company is also waiting to sign a fresh production sharing contract (PSC) for a new offshore gas block SS-08-05, for which it was selected under the country's 2008 licensing round
Tullow along with its partners - French Total, Thai PTTEP and US Oakland and Rexwood - relinquished exploration rights for blocks 17 and 18 in March 2009.
At present, Bangladesh produces around 1980 mmcfd of gas, while the demand exceeds 2200 mmcfd.