Tk 6.50b plan taken up to augment gas supply
M Azizur Rahman | Wednesday, 11 June 2008
The government has taken up a Tk 6.50 billion plan to augment gas production by 300 million cubic feet per day (mmcfd) by 2011 officials said.
"A total of 13 new wells in different gas fields will be explored, developed and worked over by the state-run gas companies to produce and supply the enhanced volume of gas across the country," Petrobangla chairman Jalal Ahmed told the FE Tuesday.
He said the main reason for augmenting gas production by the state-run companies is to meet the escalating demand for gas across the country.
The country is now reeling under an acute gas crisis which has caused disruption to power generation in several gas-fired power plants and industrial production.
At least eight gas-fired power plant are now out of operation due to shortage of gas, energy ministry official said.
Currently total gas production is around 1740 mmcfd against the estimated demand for over 1850 mmcfd.
At present three state-run gas companies - Bangladesh Gas Fields Company Ltd (BGFCL), Sylhet Gas Fields Ltd (SGFL) and Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) - produce around 900 mmcfd of gas, which is almost half of the total production.
International oil companies (IOCs) including US-Chevron, Scottish Cairn Energy, Irish Tullow, and Canadian Niko Resources produce the rest.
The gas fields to be developed for higher gas production include Titas, Bakhrabad, Habiganj, Koilashtila, Begumganj, Salda Nadi, Shahbazpur, Semutang, Meghna, Srikail and Sandalpur.
Though the government has initiated the drive to augment gas supply from state-owned gas companies within next three years, it will not discourage the IOCs in producing more gas, a senior energy ministry official said.
To woo increased investment in oil and gas exploration by the IOCs the government recently launched a bidding round for offshore oil and gas exploration. Results of the bidding are awaited.
Energy ministry, however, fears that the increased gas production would not be enough to meet the demand for the same by 2011.
Total gas demand by 2011 will be at least 2400 mmcfd, Petrobangla sources said.
The energy ministry has said that the country is expected to face severe gas shortage after 2012 unless new gas fields are discovered immediately.
"A total of 13 new wells in different gas fields will be explored, developed and worked over by the state-run gas companies to produce and supply the enhanced volume of gas across the country," Petrobangla chairman Jalal Ahmed told the FE Tuesday.
He said the main reason for augmenting gas production by the state-run companies is to meet the escalating demand for gas across the country.
The country is now reeling under an acute gas crisis which has caused disruption to power generation in several gas-fired power plants and industrial production.
At least eight gas-fired power plant are now out of operation due to shortage of gas, energy ministry official said.
Currently total gas production is around 1740 mmcfd against the estimated demand for over 1850 mmcfd.
At present three state-run gas companies - Bangladesh Gas Fields Company Ltd (BGFCL), Sylhet Gas Fields Ltd (SGFL) and Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) - produce around 900 mmcfd of gas, which is almost half of the total production.
International oil companies (IOCs) including US-Chevron, Scottish Cairn Energy, Irish Tullow, and Canadian Niko Resources produce the rest.
The gas fields to be developed for higher gas production include Titas, Bakhrabad, Habiganj, Koilashtila, Begumganj, Salda Nadi, Shahbazpur, Semutang, Meghna, Srikail and Sandalpur.
Though the government has initiated the drive to augment gas supply from state-owned gas companies within next three years, it will not discourage the IOCs in producing more gas, a senior energy ministry official said.
To woo increased investment in oil and gas exploration by the IOCs the government recently launched a bidding round for offshore oil and gas exploration. Results of the bidding are awaited.
Energy ministry, however, fears that the increased gas production would not be enough to meet the demand for the same by 2011.
Total gas demand by 2011 will be at least 2400 mmcfd, Petrobangla sources said.
The energy ministry has said that the country is expected to face severe gas shortage after 2012 unless new gas fields are discovered immediately.