Friday, January 4, 2013 OP-ED

How long will gas last in Bangladesh ?

Photo: DriknewsBadrul Imam

How long will the estimated gas reserve run" is a question frequently asked. Estimates published in the media show that the gas reserve of the country will be exhausted by 2015, 2017 or 2020. A more realistic assumption may be made by looking into the available data. Bangladesh produced and consumed about 0.7 Tcf gas in 2011, and the annual gas consumption is likely to increase to about 1 Tcf within three to four years. Assuming an average production and supply rate of about 1 Tcf gas per year, the 16 Tcf of remaining reserve (as of Dec 2011) should run for about 16 years. In other words, Bangladesh is likely to exhaust its gas reserve by about 2025. Is this assumption realistic or overly simplistic? There are a few points that need to be considered in this regard: i) gas production and supply rate will not remain static over the years, ii) gas production and supply are expected to grow in future, but the growth will not continue, iii) it is expected that the gas production and supply will grow till certain time and then start to decline and the line representing the decline will have a longer tail, and finally, iv) estimated gas reserves may change with time due to reserve addition from reserve growths and new discoveries. First of all let us discuss what is meant by reserve growth and whether reserve growth of any significance has taken place in any gas field in Bangladesh. Reserve growth refers to the addition to already known reserve in a gas field in the course of field development, i.e. if the boundaries of proven gas areas are extended and/or if new pay zones are found through drilling. Reserve does not grow automatically, but it is the new data acquired through the field development process that led to the increased estimation of the reserve. Let us take the case of Titas gas field, the largest gas field in Bangladesh, to see if reserve grew over a period of time. In 1991, the initial gas reserve of Titas was estimated by IKM (a Canadian consultant) to be 2.10 Tcf. In 2001, after several more development wells were drilled, the initial reserve of the field was re-estimated by Hydrocarbon Unit of Bangladesh and Norwegian Petroleum Directorate (HCU-NPD) to be 5.13 Tcf, a significant increase from previous estimates. In 2010, with some more development drilling done, the initial gas reserve of Titas field was again estimated by international consultant RPS Energy to be 6.36 Tcf (Petrobala 2012). Therefore Titas gas field is an example where significant reserve growth was documented as the development of the field proceeded over the years. Now the question is, do all gas fields in Bangladesh registers reserve growth with time like Titas? The answer is certainly not. There are some gas fields which register significant reserve growth while there are some others which do not, and there is a third group which registers negative reserve growth. A negative reserve growth means that the reserve of the field is found to be less than previously estimated. And finally, how does the total gas reserve of the country play out over the years? In simplistic terms, the reserve of a country gradually declines as gas is produced and consumed. However, this may be compensated by the amount of reserve growth, if any. Even more important is the fact that the reserve may still increase by another factor, i.e. if new reserves are added by new gas field discoveries. From Petrobangla published data, we may look into how the estimated total gas reserves of the country has changed over the last 20 years taking into account the new gas filed discoveries and reserve growths in the old ones. In 1993, there were 17 gas fields in the country with an estimated total initial gas reserve of 12.43 Tcf and remaining reserves of 10.55 Tcf (Petrobangla 1993). In 2003, the number of gas fields was 22 and the total initial gas reserve was estimated at 20.51 Tcf and a remaining reserve of 15.4 Tcf (Petrobangla 2004). In 2011, the number of gas fields grew to 23 with an estimated initial gas reserve of 26.84 Tcf and a remaining reserve of 16.74 Tcf (Petrobangla 2012). Interestingly, the estimated remaining reserve of the country over the years has not decreased but has increased from 10.55 Tcf in 1993, to 15.4 Tcf in 2003 and to 16.74 Tcf in 2011. This is in spite of the fact that both demand and production of gas have increased over the years. And now let us consider the main theme of the article, i.e. will Bangladesh exhaust its gas by 2020? Future projections into gas production and supply suggest that gas production will continue to increase for some years now and then it will start to decline. Thereafter, as the above projection shows, the gap between gas demand and supply will continue to widen and will never close. Yet, gas production will continue for considerable amount of time. Let us be more specific on this point. In 2006, Bangladesh Gas Sector Master Plan was prepared by Petrobangla/World Bank (consultant: Wood Mackenzie) with forecasts of future demand and supply scenarios. In a forecast of gas supply scene from the existing gas fields the production is expected to increase and reach a peak in 2016, and then it will decline. As the demand for gas continues to grow, the gap between demand and

supply will continue to widen as the production begins to decline after 2016. Gas production from the existing reserves is expected to continue to 2025 and beyond, although in short supply. In 2011, Power Sector Master Plan prepared by Japan International Cooperation Agency (JICA), forecast long-term production forecast and set three scenarios -- a high case, a base case and a low case. In each case, in addition to production from existing fields, production from identified new prospects (expected to be added as new fields) are considered. In all three cases, gas production is expected to reach a peak in 2017 and then decline. Taking the base case scenario as reference, production is expected to peak at 3320 mmcfg per day in 2017 and then start to decline (JICA 2011). As the production continues to decline, the gap between demand and supply will continue to widen. However, gas production is expected to continue to 2030 and perhaps beyond, although lesser and lesser in volume over time. According to this projection, gas as a fuel will contribute to 25% of the total electricity generation in 2030 (compared to 88% in 2010) while coal's contribution at that time would be 50% (compared to 4% in 2010). The above implies that under realistic projection, gas will not be exhausted in Bangladesh by 2020, but is likely to flow till 2030 and perhaps beyond that point. The writer is, Professor, Geology Department, University of Dhaka. (References: Energy Resources of Bangladesh, 2nd edition-December 2012, by Badrul Imam published by Bangladesh University Grants Commission, 2012)
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Bangladesh

Central & SE Asia / Australasia >>> Bangladesh

Bangladesh finds new gas reserves at the Titas gas field

15 Oct 2012 Bangladesh on Monday confirmed that it found nearly 1.0 trillion cubic feet (TCF) of additional natural gas at the country's biggest field, that will boost falling supply which has been slowing the economy. 'We have found the additional gas after completing the seismic survey at the biggest Titas gas field, more than 100 kms (63 miles) north east from Dhaka, with expert assistance from Russia and France,' Mohammad Hossain Monsur, Chairman of Bangladesh Oil, Gas and Mineral Corp told reporters. State-run Bangladesh Petroleum Exploration and Production Company (BAPEX), a subsidiary of the corporation, which is also known asPetrobangla, conducted the 3D seismic survey with financial assistance from Asian Development Bank (ADB). 'Now we have nearly 8.05 tcf gas in the Titas onshore field instead of 7.2 tcf estimated earlier,' Monsur said. BAPEX discovered the country's deepest gas reserve at Titas around 7,000 meters under ground, earlier it found gas at the same field at depth of 6,000 and 6,500 meters, officials said. Titas at present produces around 450 million cubic feet (mmcfd) gas per day from 15 wells, which is 20 percent of the country's overall gas output of around 2,270 mmcfd. Titas gas field was discovered in 1962, and commercial production commenced in 1968. Gas seepage in the field is, however, a major concern that has been continuing unabated during the past several years. ADB is financing a $23 million project to complete 3D surveys of the country's five prospective gas-fields including Titas by the first half of 2013. French geophysical firm - CGG Veritas and Russian oil and gas firm Gazprom - are helping BAPEX to conduct 3D seismic surveys. Petrobangla estimates Bangladesh's current proven and recoverable gas reserves at up to 15 trillion cubic feet. Unless new fields are found and explored the reserves would be fully exhausted in next 19 years, experts say. Shortage of gas has badly affected the country's power generation, and also forced authorities to halt gas connections to hundreds of recently built industries. Domestic supplies are also decreasing. Original article link Source: Reuters

Bangladesh finds new gas

DHAKA Mon Oct 15, 2012 2:31pm BST 0 COMMENTS

Oct 15 (Reuters) - Bangladesh on Monday confirmed that it found nearly 1.0 trillion cubic feet (TCF) of additional natural gas at the country's biggest field, that will boost falling supply which has been slowing the economy. "We have found the additional gas after completing the seismic survey at the biggest Titas gas field, more than 100 kilometers (63 miles) north east from Dhaka, with expert assistance from Russia and France," Mohammad Hossain Monsur, Chairman of Bangladesh Oil, Gas and Mineral Corporation told reporters. State-run Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX), a subsidiary of the corporation, which is also known as Petrobangla, conducted the 3-D seismic survey with financial assistance from Asian Development Bank.
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"Now we have nearly 8.05 tcf gas in the Titas onshore field instead of 7.2 tcf estimated earlier," Monsur said. BAPEX discovered the country's deepest gas reserve at Titas around 7,000 meters under ground, earlier it found gas at the same field at depth of 6,000 and 6,500 meters, officials said. Titas at present produces around 450 million cubic feet (mmcfd) gas per day from 15 wells, which is 20 percent of the country's overall gas output of around 2,270 mmcfd. Titas gas field was discovered in 1962, and commercial production commenced in 1968. Gas seepage in the field is, however, a major concern that has been continuing unabated during the past several years. ADB is financing a $23 million project to complete 3D surveys of the country's five prospective gas-fields including Titas by the first half of 2013. French geophysical firm - CGG Veritas and Russian oil and gas firm Gazprom - are helping BAPEX to conduct 3D seismic surveys. Petrobangla estimates Bangladesh's current proven and recoverable gas reserves at up to 15 trillion cubic feet. Unless new fields are found and explored the reserves would be fully exhausted in next 19 years, experts say.

Shortage of gas has badly affected the country's power generation, and also forced authorities to halt gas connections to hundreds of recently built industries. Domestic supplies are also decreasing. (Reporting By Serajul Quadir; editing by Anis Ahmed and Keiron Henderson)

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Saturday, June 2, 2012 Strategic Issues

Oil and gas in Islam's faultline

Oil, Gas, Sunnis, Shiites in the Persian Gulf Region. Photo: CIA FactboJamsheed K. Choksy and Carol E. B. Choksy

Because access to oil and natural gas is a major driving factor for foreign policy, it is necessary to look strategically at groups controlling the future of supplies. Understanding the changing power balance between Sunnis and Shiites, or Shias, in the Persian Gulf and Arabian Peninsula region also offers insights into the growing unrest there over democratic rights. The religious schism between Shiites and Sunnis that emerged in the 7th century, now mixed with oil, gas, political power and military muscle, has acquired a new volatility that goes ignored at international peril. Policymakers, the public and scholars recognize that Sunnis make up the majority of Muslims and that Shiites form a small minority. According to a Pew Research Center study in 2009, Of the total Muslim population, 1013 percent are Shia Muslims and 8790 percent are Sunni Muslims. However, global generalization fails to focus on demographic distributions in the Persian Gulf and Arabian Peninsula. Nor does it take into account the geopolitical impact of Muslim sectarianism and the strategic implications of the Sunni-Shiite divide for access to natural resources from that energy rich region. As Saudi Arabia and its Sunni partners draw increasingly upon crude oil and natural gas resources to meet the demands of an energy-hungry world, Iran and its nearby Shiite partners hold on to similar resources not by choice but through sanctions and strife. So, in the long run, nations in the region with predominantly Shiite populations could determine who receives much-needed resources. When official demographic distributions, from CIA World Factbook July 2012 estimates, for the Persian Gulf and Arabian Peninsula are examined, it becomes evident Sunnis comprise 36 percent of the overall population whereas Shiites make up 60 percent. Other Muslim groups, Bahais, Christians, Jews, Zoroastrians and Hindus constitute the remaining 4 percent Bahraini and Kuwaiti monarchies vest power in Sunni populations, augmenting their numbers by granting citizenship to Baloch and Pashtuns from Pakistan and Afghanistan while repressing the aspirations of their own Shiites. Official figures place Shiite citizenry at 65 percent of Bahrain's population and 30 percent of Kuwait's, although unofficial tallies by the Council on Foreign Relations and by Islamic Web suggest at least 75 percent of Bahrainis and 55 percent of Kuwaitis follow Shiism. Likewise Saudi Arabia, another Sunni monarchy, presents itself as overwhelmingly of the Wahhabi sect. Yet official Saudi demographics also under-represent that kingdom's Shiite population, estimated by scholars at 25 percent. Qatar and the UAE too have larger numbers of Shiite citizens than officially reported. One reason for those countries understating their Shiite populations is obvious: Retaining political power in Sunni hands. Another reason is increasingly relevant: Shiites tend to occupy oil and natural gas rich regions yet rarely share equally in the profits. A third reason has to do with global politics: The region's Sunni leaders fear the West will pressure them into more power sharing and wealth distribution in order to ensure sociopolitical stability. Indeed scholarly tallies place the approximate total number of Sunnis at 54,702,317 and of Shiites at 102,357,949, or 33 percent and 62 percent respectively, of overall population in the Persian Gulf and Arabian Peninsula region. Proven crude oil and natural gas reserves, from CIA World Factbook January 2011 estimates, are equally revealing as to how each Persian Gulf and Arabian Peninsula nation's Sunni and Shiite populations correlate with control of energy resources. Those countries which officially claim Sunni majorities, namely Saudi Arabia, Yemen, Qatar, Kuwait and the UAE have approximately 493 billion barrels of proven crude oil reserves. States there with official Shiite majorities, namely Iran, Iraq and Bahrain, have 252 billion barrels of proven crude oil reserves.

But Sunni-majority nations have been steadily increasing export of crude oil to the world, 11 million barrels per day in the case of Saudi Arabia, thereby depleting reserves. Production in Iraq has ramped up only slowly, since the end of Western military action there in December 2011, to 3 million barrels per day. Iran has seen its energy exports fall well below capacity during the past decade, due to mounting US and UN economic sanctions, to less than 3 million barrels per day despite locating additional potential reserves. Likewise, the same Sunni states have approximately 41,907 billion cubic meters of proven natural gas reserves, or about 28 percent more than the Shiite states' 32,872 billion cubic meters. Proven gas reserves in Iran are being depleted less, due to international sanctions reducing output from a high of 189 billion cubic meters in 2010, and those in Iraq are only slowly ramping up to around 140 billion cubic meters. Moreover, Iran has identified untapped potential reserves. But since 2010 both Qatar and Saudi Arabia have increased production by 11 billion cubic meters and 26 billion cubic meters, respectively, from previous total outputs of 117 billion cubic meters and 84 billion cubic meters. So from an energy resource control standpoint, too, Shiites could make significant impacts both positively and negatively on the world's supplies in the future. Oman has approximately equal numbers of Sunnis and Shiites both are minorities to an Ibadi Muslim majority and so is unlikely to be involved directly in the region's sectarian energy politics. Along the Persian Gulf and on the Arabian Peninsula, Sunni leaders are cracking down against Shiites seeking more proportionate benefits. Bahrain's Sunni ruling class punishes the country's Shiite majority for attempting a revolt while boosting Sunni numbers by recruiting immigrants. Saudi Arabia's monarchy uses its military to enforce the regime's authority in that country's largely Shiite inhabited northeastern oil-rich areas and in Bahrain. In Yemen, Zaydi Shiites supported by Iran are seeking political autonomy from a Shafi Sunni government sustained by Saudi Arabia and the US. Many nations display reticence in condemning those regimes for human rights violations because the world's economy needs Arabian crude oil. To safeguard the energy trade, American forces are based in every Sunni-administered nation in the region. British and French militaries utilize those US bases, and France has a naval facility in the UAE. As a result, Shiite hostility builds against the US and EU. Even if the Saudis succeed in politically uniting the Arabian Peninsula, the region's Sunnis may not be able to constrain an increasingly cooperative Iran and Iraq Shiite partnership from eventually gaining dominance. Bahrain is unlikely to remain under Sunni minority rule over the long term, and once controlled by its Shiite population will tilt toward Tehran. The same political transformation could occur in Kuwait too. Moreover, US-led sanctions against Iran will not persist indefinitely and, while they do, are providing a deferred benefit of conserving that nation's energy resources. Eventually in coming decades countries like Iran, Iraq, Bahrain and possibly Kuwait with large Shiite populations could well play greater roles in deciding which other nations receive much-needed energy exports not just crude oil but natural gasfrom the Persian Gulf and Arabian Peninsula. As of now the US and EU are seen by those populations as siding with their Sunni archrivals. Stability in this region depends on political power-sharing and religious tolerance between Sunnis and Shiites. The West needs to assist in ensuring those outcomes.

The writers are Professor of Iranian, Islamic, and International studies and Adjunct lecturer in Strategic Intelligence and Information Management at Indiana University respectively.
Yale Global Online. All rights reserved. Reprinted by arrangement.

Bangladesh: Bangladesh Natural gas Profile

2011/06/10

Natural gas

Natural gas reserve estimates vary widely for Bangladesh. Oil & Gas Journal (OGJ) reported that Bangladesh had 5 trillion cubic feet (Tcf) of proven <!--Add this page: natural gas reserves-->natural gas reserves as of January 2006, down significantly from OGJs January 2005 estimate of 10.6 Tcf. It is not clear why the large d owngrade of Bangladeshs natural gas reserves occurred. In mid-2004, estimates from state-owned Petrobangla put net proven reserves at 15.3 Tcf. Bangladeshs Ministry of Finance estimated in 2004 that the country holds 28.4 Tcf of total gas reserves, of which 20.5 Tcf is recoverable. In June 2001, the <!--Add this page: U.S. Geological Survey-->U.S. Geological Survey estimated that Bangladesh contains 32.1 Tcf of additional undiscovered reserves. While estimates of the countrys reserves vary, <! --Add this page:natural gas-->natural gas is Bangladeshs only significant source of <! -Add this page: commercial energy-->commercial energy. The government of Bangladesh estimates that natural gas accounts for 80 percent of the countrys commercial <! --Add this page: energy consumption-->energy consumption. In 2004, Bangaladesh produced 463 billion cubic feet (Bcf) of natural gas, up from 429 Bcf in 2003 and more than doubling the 1994 level. Despite increasing production levels, Bangladesh has never been a net exporter of natural gas. Given the uncertain size of the countrys natural gas reserves, the government has been reluctant to export natural gas and has instead focused on meeting current and future domestic energy needs.

Exploration and Production

Natural gas exploration and production is dominated by three state-owned companies, all of which are subsidiaries of Petrobangla. Bangladeshs largest gas production company, Bangladesh Gas Fields Company Ltd. (BGFCL), operates the Sylhet, Kailashtila MSTE, Kailashtia, Rashidpur, and Beanibazar <!--Add this page: gas fields-->gas fields. From these five fields, BGFCL produces 810 million cubic feet per day (Mmcf/d), or roughly half of the countrys total natural gas production. The Sylhet Gas Field Company Ltd. (SGFCL) is Bangladeshs second largest production company, producing 162 Mmcf/d of natural gas. SGFCL operates the Sylhet, Kailashtila M STE, Kailashtia, Rashidpur, and Beanibazar gas fields. The third state-owned company involved in natural gas production and exploration is BAPEX, which produces about 58 Mmcf/d of natural gas from the Salda and Fenchuganj fields. To encourage <!--Add this page: natural gas exploration-->natural gas exploration, the government opened the <!--Add this page: natural gas sector-->natural gas sector to foreign investment in 1993, after initiating the First Bidding Round of Production Sharing Contracts. Foreign companies today produce 501 Mmcf/d of natural gas from four gas fields. The leading foreign producer is Chevron, which produces 331 Mmcf/d from the Jalalabad and Moulavibazar fields. Chevron also expects to begin producing an estimated 300 Mmcf/d of natural gas from the Bibiana field in October 2006. The UKs Cairn Energy is the second largest foreign natural gas production company, producing 146 Mmcf/d of <!--Add this page: natural gas-->natural gas from Bangladeshs lone offshore gas field at Sangu. Canadas Niko Resources has been involved in disputes with the government after two blowouts that occurred in 2005 at the companys Chattak (formerly known as Tengratila) gas field. There are several other fields that may prove to hold additional natural gas resources. Petrobangla estimates that the Bibiana field, currently operated by Chevron, may contain as much as 2.4 Tcf in recoverable <!--Add this page: natural gas reserves-->natural gas reserves. Offshore natural gas fields also present large possible reserves, although minimal offshore exploration has occurred to date due to lingering border disputes with <!-- Create this article: India -->India and <!--Add this page:Myanmar-->Myanmar.

Pipelines

Domestic

Bangladeshs domestic <! --Add this page: natural gas pipeline-->natural gas pipeline network is operated by the Gas Transmission Company Ltd. (GTCL), a subsidiary of Petrobangla. The company began with the 120-mile pipeline connecting the Kailashtila gas field to Ashuganj. Later GTCL implemented the 40-mile Ashuganj-Bakhrabad pipeline, which completed the interconnection of the national gas grid. GTCL currently operates 480 miles of pipelines and is the sole natural gas transmission company in Bangladesh. Most of Bangladeshs pipeline network is concentrated in the more populated and developed eastern zone of the country. In 2000, <!-Add this page: Bangladesh-->Bangladesh completed a 20-mile pipeline across the Jamuna River, which separates the eastern and western parts of the country. In 2001, this pipeline was extended to the Baghabari natural gas-fired power plant, and a network of pipelines in the west is now starting to take shape. In June 2006, the government of Bangladesh and the <!--Add this page: Asian Development Bank-->Asian Development Bank (ADB) signed a $230 million loan package to improve Bangladesh's natural gas infrastructure, specifically designed to aid <!--Add this page: economic development-->economic development in the western part of the country. According to the ADB, the project includes four gas transmission pipelines, measuring 220 miles, which will transport about 360 Mmcf/d of <!--Add this page: natural gas-->natural gas to the 15 million people living in west Bangladesh.

International
Since 1997, Bangladesh has been working to reach an agreement with its neighbors for the establishment of a 560-mile pipeline to transport <!--Add this page: natural gas-->natural gas from <!--Add this page: Myanmar-->Myanmar to <!-- Create this article: India ->India through its territory. In January 2005, the Bengali government approved the project, contingent upon India and Myanmar accepting trade concessions and other stipulations. So far, India has not accepted the demands of Bangladesh, and GAIL, India s stateowned pipeline operator, completed a <!--Add this page: feasibility study-->feasibility study in June 2006 of an 870-mile pipeline from Myanmar that would circumvent Bangladesh altogether. However, this option would significantly increase transport costs of natural gas from Myanmar, and the pipeline would have to travel through unstable areas in northeastern Indi

Bangladesh Has 16.59 Tcf of Gas Reserves

Bangladesh has an estimated 16.59 trillion cubic feet (Tcf) of recoverable gas reserves left in its 23 gas fields as of January 2012, and are enough to meet local demand for next 18 years at the current rate of consumption, Financial Express said.

Of the total reserve, 15.61 Tcf lies in its 22 onshore gas fields while the remaining 97.60 billion cubic feet (Bcf) in its lone offshore Sangu gas field. According to the latest estimates, Chevron-operated Bibiyana field has the highest recoverable gas reserves at 4.76 Tcf, followed by state-run Titas gas field at 2.99 Tcf. The newspaper said that the country's natural gas production is now hovering around 2,160 million cubic feet per day (mmcfd) against the demand for over 2,500 mmcfd. Bangladesh now has 80 producing gas wells in 19 fields, out of a total of 23 discovered fields.

The government is planning to import liquefied natural gas (LNG) to cope with gas supply shortfall.

Petrobangla is set to receive final bids from four short-listed firms to build a floating LNG terminal at Moheshkhali island in the Bay of Bengal on June 11.

Bangladesh to exhaust gas reserves?

June 25, 2013 at 12:28 PM | 0 comments

DHAKA, Bangladesh, June 25 (UPI) -- Bangladesh risks running out of existing recoverable gas reserves within the next decade if no new gas fields are discovered, experts warn. "Bangladesh urgently requires the necessary exploration and drilling to increase overall natural gas output," local energy expert Nurul Islam told Platts Monday. Data from state-owned Bangladesh Oil, Gas & Mineral Corp., known as Petrobangla, shows the country's natural gas output is about 2.28 billion cubic feet a day against a demand of 2.7- to 3 Bcf per day. Amid annual estimated demand growth of 10 percent, the country's entire recoverable gas reserves of 16.36 trillion cubic feet are on course to dry up by 2022, Platts reported. But if the natural gas consumption rate should exceed that 10 percent growth estimate, Bangladesh's reserves won't last more than a decade, a senior Petrobangla official said. Of Bangladesh's 20 producing gas fields, 15 are state-owned and the remaining operated by international oil companies. Chevron now contributes more than half of Bangladesh's total gas production.

An editorial in Dhaka's Financial Express earlier this month noted the country's policymakers and "so-called hydrocarbon experts" had portrayed a rosy picture that "Bangladesh was, as if, floating on gas." Instead, the editorial stated, the current "availability of gas is far short of the domestic demand for it." It said the scarcity of gas has created "multifarious" economic problems, with new industries not being able to start operation and existing ones operating at less than capacity. In 2011, Petrobangla had forecast by this month it would be able to nearly double Bangladesh's gas supplies and by December 2015 gas supplies would be further boosted, to exceed the country's demand. But Petrobangla last week revised downward the country's natural gas output projection. Bangladesh's natural gas output increased only by 110 million cubic feet per day to 2.26 billion cubic feet per day until June 2013 from 2.15 Bcf per day in June 2012, Petrobangla data indicated. "We could not increase natural gas supply from the state-owned gas fields in line with our initial target, resulting in less than expected natural gas output," a Petrobangla official said. He cited setbacks, including Chevron's delay until 2014 of its plan to increase gas supplies from a previous target of 2013 and Russia's Gazprom not able to meet its December 2013 target to complete a 10-well drilling program, the Financial Express reports. The country's ambition to import liquified natural gas by December 2013 also has stalled because a bidder had not been selected to build a floating LNG terminal.
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Publisher Society of Petroleum Engineers Document ID 64456-MS Content Type Conference Paper

Language English DOI 10.2118/64456-MS

Title Material Balance Study of Gas Reservoirs by Flowing Well Method: A Case Study of

Bakhrabad Gas Field

Authors Z. Choudhury, Petrobangla; E. Gomes, Bangladesh University of Engineering and Technology Source SPE Asia Pacific Oil and Gas Conference and Exhibition, 16-18 October 2000, Brisbane, Australia ISBN 978-1-55563-909-9 Copyright Copyright 2000, Society of Petroleum Engineers Inc. Preview Abstract Due to critical production-demand situation, proper pressure survey can not be conducted on a regular basis in the gas fields of Bangladesh. Shutting in the wells for pressure survey is also very expensive for the gas production companies. Flowing well method provides an opportunity for updating the reserves without interrupting the production. In recent years, pressures of different sands of Bakhrabad Gas Field have been declining sharply and it is believed that the field would be exhausted very shortly. Therefore, Bakhrabad Gas Field is a perfect candidate for applying this new method to estimate the gas reserve and verify it by the actual reservoir performance. Flowing well method of estimating the gas reserve is based on the assumptions that the wells have produced long enough to reach the pseudosteady state condition and the produced gas is relatively dry so that there is no liquid buildup in the well. In this study, actual flowing pressures of the four producing wells of the J Sand of Bakhrabad Gas Field have been analyzed in a similar fashion as the average reservoir pressure in a conventional material balance study. Both wellbore and wellhead flowing pressures have been used to find the reserve. Analytical justifications have been provided in support of this method. Limitations are also explained when applied to a particular gas reservoir. The flowing well method does not require shutting in the wells and conducting a pressure survey. The results of this study have been compared with those of conventional material balance and simulation studies. The results have also been compared with those of other studies previously conducted on Bakhrabad Gas Field. These comparisons show that the gas in place values obtained from flowing well method compare well with those of other studies. Introduction The estimation of gas reserves is a fundamental aspect of reservoir engineering and is conducted throughout the life of a reservoir. Correct estimation of reserve is important for the development of a gas field, design of production facilities, and furnishing gas contracts. Traditionally, reserves are calculated by three methods: volumetric, material balance, and production decline. The volumetric and the material balance methods yield the total gas in place estimates whereas the production decline method estimates the recoverable gas.

The accuracy of the reserve calculation by the volumetric method is dependent upon the accuracy of data available, especially the seismic and log data. In a fluvio-deltaic sequence, as in Bangladesh, the likelihood of large errors in estimating rock volumes is very high. Limited exploration and drilling activities suggest that most of the reservoirs of the country are stratigraphic as opposed to structural in nature. As a result, there may be gross errors in estimating the original gas in place by volumetric method. On the other hand, the accuracy of reserves calculated by the material balance is dependent upon the production and pressure data. The material balance method is not sensitive to the reservoir geometry and its accuracy increases with time as more pressure and production data are available. File Size 130 KB Number of Pages 8

Gazprom Begins Drilling 3rd Well in Bangladesh Gas Field

Gazprom has started drilling the third well in Bangladesh's Begumganj gas field after drilling Srikail-3 and Titas-20 wells under its 10well drilling programme, Financial Express newspaper said citing officials. The Russian firm has begun supplying gas commercially in Bangladesh couple of weeks ago from Srikail-3 onshore well, Petrobangla chairman Hussain Monsur told the Financial Express. The Srikail well is supplying around 19 million cubic feet per day (mmcfd) of gas to the national grid. The well has a potential to supply up to 30 mmcfd of gas, the newspaper reported. But the Srikail-3 well, owned by state-owned Bangladesh Petroleum Exploration and Production Company Ltd (Bapex), has the potential to supply up to 30 mmcfd of gas, said a Petrobangla official. Gazprom is the first foreign oil and gas company engaged in operation in Bangladesh on a contract basis. Other international oil and gas companies active in Bangladesh operate under production-sharing contracts or in joint venture with Bapex.

Bangladesh's Gas Reserves May Last Only a Decade

Bangladeshs existing recoverable gas reserve of 16.36 trillion cubic feet (Tcf) is likely to last only a decade. Financial Express citing industry experts said that if no new gas fields are discovered, countrys industrial and economic growth could be severly hampered.

"The country urgently requires necessary exploration and drilling activities to increase overall natural gas output," Professor Nurul Islam of Bangladesh University of Engineering and Technology (BUET) said Tuesday, Financial Express reported.

Currently, Bangladesh's natural gas output is hovering around 2.28 billion cubic feet (Bcf) per day against the demand for 2,700-3,000 Bcf. But with an estimated annual demand growth of 10 per cent the country's entire recoverable gas reserve is set to dry up by 2022, the newspaper said. There are currently 20 producing gas fields, 15 state-owned and five operated by the international oil companies. Experts also suggest that like offshore blocks, governmet should also open onshore blocks for global companies.

Gas Demand in Bangladesh to Rise 15% This Fiscal

Natural gas demand in Bangladesh during the current fiscal is expected to rise by 15.18 % to 1.222 trillion cubic feet (Tcf), as per state owned Petrobanglas estimates. Deficit in supply would remain as maximum supply would be around 1.111 Tcf, even if all its gas production plans are executed properly, Financial Express quoted a senior Petrobangla official as saying.

Petrobangla has set a target to increase natural gas output by 297 million cubic feet per day (mmcfd) within the next six months, the newspaper said.

February 04th, 20139:45pmPosted In: Natural Gas, LNG, News By Country, Other Countries, India, Bangladesh

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Hiranandani In Race to Build Bangladesh's First LNG Terminal

Indian construction major Hiranandani Group is in a race to build Bangladeshs first liquefied natural gas (LNG) terminal in Moheshkhali Island in the Bay of Bengal.

We were informed a few months before that we had been shortlisted to build the terminal, Darshan Hiranandani, director of H industan Electricity Generation, a Hiranandani Group firm told Business Standard while confirming the news.

According to the annual report of Bangladeshs state-run energy company Petrobangla, the proposed floating LNG storage and regasification unit will have a regassification capacity of 500 million cubic feet a day (mcfd), the financial daily said.

The group is already setting up an 8-mt LNG terminal at the Dighi port in Maharashtra for captive use for its coming power plants and to cater to consumers in the power and fertiliser industry, the newspaper added.

April 09th, 201312:24amPosted In: Natural Gas, News By Country, Bangladesh

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Tullow Sells Bangladesh Asset to KrisEnergy

Tullow Oil through its subsidiary, Tullow Oil International, has signed an agreement with KrisEnergy Asia Holdings a subsidiary of KrisEnergy Asia, for the sale of 100% of the share capital of Tullow Bangladesh. The exercise will raise$42.35 million for the company, Tullow said in a statement.

Tullow has a 30% interest in and operates Block 9 on behalf of partners Niko Resources (60%) and Bangladesh Petroleum Exploration and Production Company (BAPEX) (10%). The 1,770 sq km block includes the Bangora gas producing facility and the Lalmai discovery. During 2012, gross production from the Bangora field averaged around 100 mmscfd and 300 barrels of condensate per day, the company said.

May 05th, 20137:26pmPosted In: Natural Gas, LNG, News By Country, Other Countries, Qatar, Bangladesh

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Bangladesh, Qatar May Extend Tenure of LNG Deal

Bangladeshs Energy Ministry has initiated a move to extend the tenure of a deal with Qatar to import liquefied natural gas (LNG) as the country was unable to create import facilities during the two year period since the deal was inked, Financial Express Bangladesh reported citing United News of Bangladesh. The two countries signed the deal in January 2011 under which Bangladesh was to import 500 million cubic feet per day (MMCFD) of gas.

Deal's effectiveness was set until March 2013 as the government had a plan to start the import of the liquefied gas from first half of the year after developing necessary infrastructures, Financial Express said.

A lot of follow up action was to be taken by Bangladesh which it was unable to do, official sources said. The actions include creating LNG import facilities, technical discussion, fixing prices and signing of final contract for the import of the liquefied gas.

August 19th, 201210:56pmPosted In: Natural Gas, News By Country, Other Countries, Bangladesh

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Bangladesh Discovers New Gas Field

Bangladesh has discovered a new gas field in northeastern part of the country with significant potential.

Xinhua has reported that gas structure in the country's Kailashtila gas field in Sylhet, some 241 km northeast of thecapital, has been discovered by the staterun Bangladesh Petroleum Exploration Company (BAPEX).

BAPEX Managing Director Mortuza Ahmad Faruque told reporters that the new layer of gasreserve was detected during test drilling at a well in the Kailashtila gas field in Sylhet onSunday.

The news agency has said that officials were at the moment could not ascertain immediately the total amount of recoverable gasreserves in the new layer of the field as a thorough analysis and interpretation of the data has not been completed.

January 26th, 20136:57pmPosted In: Press Notes

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Financial Express Bangladesh: Whither energy security?

Against the backdrop of looming fuel crisis, the issue of energy security, in its real sense, has come to the fore. Various circles have already raised questions over how far the country enjoys this security. There should be supply assurance of primary fuel to the power plants and industries for at least 10-12 years, in order to ensure energy security. Bangladesh is already experiencing scarcity of gas and the pace of on-going hydrocarbon exploration is highly unsatisfactory. This has heightened the need to assess the extent to which Bangladesh has energy security now. Over the past decade, there have been no major effective efforts to explore and exploit the gas resource of Bangladesh, notwithstanding the dependence of its economy, to a large extent, on gas. There was otherwise a mushroom growth of medium and large gas and energy-consuming industries in and around Dhaka and Chittagong cities over the years. As result, there has been an unbalanced growth of demand for gas against its available supply. The authorities concerned have not been able to address the problem properly. The absence of proper perspective planning on the part of Petrobangla and its affiliated agencies to coordinate gas sector development and its operation is largely responsible for this. MORE

November 26th, 201211:40pmPosted In: Natural Gas, News By Country, Other Countries, Bangladesh

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Gazprom to Start Drilling for Gas in Bangladesh in January

Gazprom is likely to start drilling at Titas and Srikail gas fields in Bangladesh from January, Petrobangla officials said, the News Today reported citing United News of Bangladesh.

They said the first drilling will take place at Titas' well No-17 and then at Srikail field under the agreement signed with stateowned Petrobangla to drill a total of 10 wells at different gas fields across the country. Of the 10 wells, Gazprom will dig two wells at Shahbajpur, each one at Begumganj, Semutang and Srikail gas fields, under Bangladesh Petroleum Exploration and Production Company(Bapex), the report said. The other five wells, including four at Titas field and one at Rashidpur field, are underBangladesh Gas Field Company (BGFCL) and Sylhet Gas Filed Company Limited (SGFCL).

RPT-Santos closes down Bangladesh's only offshore gas field

Tue Oct 1, 2013 5:21pm EDT 0 COMMENTS

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(Repeats story published late Tuesday; no change to text) Oct 1 (Reuters) - Bangladesh's only offshore gas field stopped permanently on Tuesday due to its uncommercial level of production. "Santos, an Australian oil and gas exploration company, the operator of the field officially informed us about the closure," said Mohammad Imaduddin, director of state run Bangladesh Oil, Gas and Mineral Corporation or Petrobangla. Sangu could produce only 2.5 million cubic feet gas a day, a senior government energy official said. Santos officials had said that the well would not be economically viable if its output fell to 15 mmcfd. "According to a deal it will hand over the offshore platform, natural gas processing plant and pipelines to us," Imaduddin, responsible for dealing with international oil company told Reuters. In 1994 Cairn, a British firm started to drill the field and started production in 1996 and sold 50 percent of its share to Shell, another British oil firm. Later Shell sold its share back to Cairn again and in 2010 the latter sold the field to Santos. In the beginning the field produced up to 180 million cubic feet of gas a day, but gradually it started to decline. Santos, in July 2013, attributed its closure to the steeper-than-expected decline at the gas well. The reserves estimate for the main Sangu gas field was wrong, and subsequent overproduction from the field led to the sharp fall in output, another Petrobangla official said. (Reporting By Serajul Quadir, editing by William Hardy)

Created on September 20, 2013 at 01:45

Curtain falls on Sangu on Oct 1

Aminur Rahman Rasel

The closure is likely to have serious effect on household and power plants gas supply in the Chittagong region
Sangu, the first offshore gas field in the country, run by Australian oil and gas exploration company Santos, will be shut down permanently on October 1 with its reserves running out fast. The closure is likely to have serious effect on household and power plants gas supply in the Chittagong region, as Sangu is the main source of gas in the area. At present, a total of 3 million cubic feet of gas is being produced daily [from the Sang u 11 well]. In a recent letter to Petrobangla, Santos said running the field would not be commercially viable and thus has to be declared abandoned, Muhammad Imaduddin, Director of Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) told the Dhaka Tribune. According to the letter, the gas field will be shut down on October 1, at 7am. Petrobangla and Bangladesh Gas Fields Company Ltd officials will visit the field on September 22, Imaduddin said. The officials will make recommendations based on the situation of the platform out in the Bay of Bengal, the processing plant and the pipelines, he said. BGFCL, a concern of Petrobangla, will later monitor the gas field according to the recommendations. Once the Sangu gas field is abandoned, energy-starved south east of the country will suffer for years to come. However, a Petrobangla official hoped that the state-run agency will be able to supply at least 200mmcfd more gas from several gas fields by December. So the gas crisis may see a little progress. Santos had previously requested Petrobangla to take over the operations of the Sangu platform in the Bay of Bengal, its processing plant and the pipelines worth around $500m within 90 days of the notice period, as per the Production-Sharing Contract. The Australia-based company had started supplying gas from the Sangu-11 well on June 17, 2012 at a rate of 25mmcfd, after signing the first-ever third-party gas purchase and sales contract in the country, with state-owned Power Development Board (PDB) as the purchaser. This was the first gas sale to an end-user at market price by any international oil company operating in Bangladesh. Before starting production at the Sangu-11 well, Santos had shut the depleted main Sangu gas field, in order to use the single offshore platform. The older Sangu gas field was then supplying around 8mmcfd of gas. The primary Sangu gas field and Sangu-11 well has produced 485.78bn cubic feet (bcf) of gas till December 2012, according to Petrobangla officials. From Sangu-11, the Australian firm was selling gas to the PDB at $4.50 per Mcf (1,000 cubic feet), up 55% from the previous rate of $2.90 per Mcf, for gas from the older Sangu well. According to Petrobanglas estimate, Sangu field had a proven reserve of 577.80bcf gas, however, Prof Ijaz Hossain of Bangladesh University of Engineering and Technology (Buet) believes the estimates of has been a matter of hide and seek.

The reserve is supposed to exhaust, since an excessive amount of gas was produced in the beginning, he told th e Dhaka Tribune. The expected gas could not be extracted from Sangus main gas fields because of over extraction. It may cause danger to the gas fields, said Ijaz Hossain. The Sangu gas field could produce more than 150mmcfd, but now it can only produce 3mmcfd, he said. Sangu was discovered by Cairn in 1996 who handed over the ownership with assests and liabilities to Dutch company, Shell in 1998. After a steady production of gas for six years from Sangu, Shell gave all of its upstream assets and undertakings back to Cairn Energy in 2004. In October 2007, Santos acquired from Cairn Energy, a 37.5% interest in the Sangu Development Area, and a 50% interest in Block 16 exploration acreage, located in the Bay of Bengal. In December 2010, Santos acquired the remainder of Cairns interests in Bangladesh, and became operator of the acreage.

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JULY 25, 2013Maulvibazar gas field siege withdrawn Last updated on September 20, 2013 at 01:45

Info on gas reserves misleading

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Severe confusion has been created by different kinds of data in different reports prepared by the government on the countrys gas reserves. It has allowed two different wings to produce different reports on the countrys energy reserves and resources, whi ch is causing serious problems for the implementation of public and private energy projects. In recent times, Petrobangla, the state-run oil and gas Production Company, and the Hydrocarbons Unit, another wing of the energy ministry which calculates estimates of reserves of hydrocarbon resources, have published separate reports on the countrys gas reserves, but they do not match. According to Petrobanglas report, the countrys total recoverable gas reserves are 16.37 trillion cubic feet (tcf) in all th e 23 fields which are in operation in the country. But the Hydrocarbons Unit has estimated that the countrys gas reserves are 18.2 tcf. Petrobangla and the Hydrocarbons Unit have been providing separate data and information on gas reserves and resources since 2002. According to the Power Division, since it has been given such information about the availability of energy, it plans to install a 1,325-MW gas and dual fuel based combined cycle peaking plant by 2015 on a build-own-operate (BOO) basis. The plans have been jeopardised as Petrobangla said it is not possible for it to supply gas for these power plants. The countrys 23 gas fields had produced 10.51 tcf of gas till June this year against the total reserves of 26.88 tcf, Prof. Hossain Monsur informed the Energy and Mineral Resources Division (EMRD) last month. The gas reserves can be used for the next 19 years if they are consumed at the present rate of 2.26 billion cubic feet per day. But the gas reserves will be available for just 14 years if they are used at a rate of 3.04 bcf per day, the report said. The official figures of gas reserves should be one and the same. The methodology of the study undertaken is not the issue, t he outcome of the research should give us a single scenario, said former energy adviser and BUET professor Dr M Tamim about the differences among the reports. He said energy is the backbone of a country. Depending on the data of the energy reserves, policymakers plans their future projects and investors chalk out their business plans. So, it is very dangerous if the basic data is incorrect, he pointed out. Besides, the state-owned gas and oil company has repeatedly released some pieces of information to the media, which are fake and fabricated. In the latest instance, Petrobangla on Wednesday announced that it has discovered a new layer at Bakhrabad gas field, which has also turned out to be fabricated news. The field was abandoned in 1995-96. It was damaged because there was excessive extraction. But gas was there. We dont understand how and where Petrobangla has got the new layer. We shall accept the information if it is able to extract gas from the new zone, energy expert and Bangladesh University of Engineering and Technology (BUET) professor Dr Ijaz Hossain told The Independent. He pointed out that it could be a confirmation report, nothing more than that. Dr M Tamim told The Independent, This is not correct, it is not at all a new layer or discovery. Such a statement should not be made. Petrobangla chairman Dr Hossain Monsur announced on 5 May 2012 that Bapex has discovered oil in Kailashtila and Haripur gas fields and is set to go in for commercial production of oil from Kailashtila and Haripur gas fields within a year. However, both structures were actually identified by a foreign company in the Sixties. The new layer at Titas Gas field the high prospective Sunetro was also a piece of fake information. That is really upsetting, a senior official said. Petrobangla chairman Dr Hossain Monsur told The Independent, I never said those were new or a discovery, all are there. He added that whatever the media has said is their responsibility, Petrobangla has nothing to do with them.

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Created on July 25, 2013 at 10:32

Maulvibazar gas field siege withdrawn

Aminur Rahman Rasel

The contractors started the demonstration programme on July 18 demanding contract without tender on the basis of negotiation

Map of Maulvibazar district Photo- Wikimedia

Contactors, who laid a siege to the Maulvibazar gas field operated by the US-based oil and gas company Chevron for seven days, withdrew their blockade after they were assured of a meeting with the company. The officials of the gas company, contractors and Upazila Nirbahi Officer of Sreemangal Upazila in Maulvibazar Ashfakul Haque Chowdhury had a meeting in the gas field Wednesday to settle the disputes. The contractors started the demonstration programme on July 18 demanding contract without tender on the basis of negotiation. We postponed our demonstration as we got assurance from the UNO that we could have a meeting with the Chevron authorities to meet our demand within a week, proprietor of Kalapur Enterprise Mojibur Rahman, one of the contractors, said Wednesday. I went to the gas field and I also assured the contractors that the Chevron authorities would sit with them in the next one week, UNO Ashfakul Haque said.

External Affairs Director of the Chevron Bangladesh Naser Ahmed said: We thanked the UNO for the settlement. We always look forward to working with local business groups in a fair and transparent manner following chevrons procurement process. he said. The company will sit with the vendors on August 1 to sort out the disputes, he added. The vendors have blockaded the approach road to the Maulvibazar gas field as a way of demanding exclusive rights to contracts, as opposed to an open bidding process. Under such circumstances, the Chevron sought the support of the government to continue uninterrupted operations of the Maulvibazar gas field. According to sources, there are 22 enlisted vendors in the Maulvibazar gas field area. Chevron awards any contracting work via an open, competitive bidding process. But a splinter group of five vendors have been pressurizing local Chevron staff to distribute all contracting work exclusively amongst them, instead of allowing all 22 to participate in the bidding

Over-extraction by Chevron could destroy gas fields

Aminur Rahman Rasel

'Petrobangla should take the matter seriously'

Chevron contributes more than half of the countrys total gas production, but is it sustainable? Photo- Wikimedia

The US-based international oil company, Chevron, is now extracting an additional 116mmcfd (millions of cubic feet per day) of gas from its three gas fields, as called for by the government. According to the Production Sharing Contract (PSC), the company is expected to produce 1060mmcfd of gas, but as of June 20, now produces 1176mmcfd. This means Chevrons contribution amounts to more than half of the countrys total gas production of 2250mmcfd. Experts say if the additional extraction of gas continues, it might result in the destruction of the gas fields, as was seen at Bakhrabad and Sangu fields that experienced production reductions. According to the state-run Oil, Gas and Mineral Corporation (Petrobangla), the Jalalabad gas field has the capacity to produce 230mmcfd of gas, but Chevron extracts 242.4mmcfd. The company extracts 85.8mmcfd of gas from the Moulvibazar gas field instead of 60mmcfd. It is supposed to extract 770mmcfd from the Bibiyana gas field, but is extracting 847.5mmcfd.

When contacted, Naser Ahmed, the external affairs director of Chevron Bangladesh declined to comment on the matter. Petrobangla director, Muhammad Imaduddin, however, said Chevron is extracting the extra gas to meet demand. The over extraction may cause danger to the gas fields, said energy expert Dr Ijaz Hossain, a professor at the Bangladesh University of Engineering and Technology (BUET). The expected gas could not be extracted from the Bakhrabad and Sangu gas fields because of over extraction. The Bakhrabad gas field could produce 250mmcfd, but now can only produce 28mmcfd. The Sangu gas field could produce more than 150mmcfd, now reduced to 6mmcfd. This is bad luck for us, said the BUET professor. Petrobangla has not conducted a study on the gas reserve for a long time . It should have done so before deciding on additional extraction. According to the PSC, a company cannot produce more than 7.5% of the proven and probable (P1 plus P2) reserve of gas in a year. Chevron has interests in two PSCs in Bangladesh, covering Block 12 (Bibiyana field) and Blocks 13 and 14 (Jalalabad and Maulavibazar fields) in the northeastern Sylhet region. The company sells the gas it extracts to the government under long-term sales agreements. The additional extraction of gas by Chevron will not hamper the gas fields, said Petrobangla chairman, Hossain Monsur. Dr Ijaz said: There is [a game of] hide and seek about the estimated reserve of the Sangu gas field. Energy expert, Badrul Imam, a professor at Dhaka University said: It has been found from past experience that over extractio n affected the gas fields. Petrobangla should take the matter seriously. He was skeptical about whether Petrobangla was conducting any monitoring on possible consequences of over extraction

Created on July 21, 2013 at 09:29

Chevron pushing gas processing limits

Aminur Rahman Rasel

Processing plants at three gas fields might become inactive any day

Chevron contributes more than half of the countrys total gas production, but is it sustainable? Photo- Wikimedia

The processing plants at three gas fields in the country might become inactive any day as they are producing more gas than their capacities. US-based international oil company Chevron operates these gas fields, which have a total production of around 1,150mmcfd. Experts say a processing plant can ideally produce about 90-95% of its capacity in order to ensure its longevity. If it exceeds then there are chances that unprocessed gas might enter the national grid which might give rise to severe complications. Processing plants separate dust, water and condense the raw gas extracted from under the earth for use. On June 23, gas supply was disrupted almost everywhere in the country for nearly 20 hours following a leak in the processing plant of the Bibiyana gas field in Habiganj. Household chores were hampered and gas-based power plants and industries were shut almost throughout the day. Bibiyana is one of the fields that produce more gas than the safe limit.

According to the state-run Oil, Gas and Mineral Corporation (Petrobangla), the Jalalabad gas field has a capacity to produce 230mmcfd of gas. But Chevron is reportedly putting extra pressure on the system by extracting between 240-243mmcfd of gas from the field, which is equal to the capacity of the processing plant. In addition, Chevron extracts 70-83mmcfd of gas from the Moulvibazar gas field, which has a capacity of 60mmcfd. The capacity of the processing plant on the field is 85mmcfd. The company is supposed to extract 770mmcfd from the Bibiyana gas field, but is extracting 823-847mmcfd. The processing plants capacity is 850mmcfd. Gas Transmission Company Limiteds Managing Director Md Aminur Rahman admitted there were risks in extracting gas near the full capacity of processing plants. We do not have the ability to face the gas crisis if any processing plant becomes inactive, he added. Chevron currently extracts more than half of the countrys total gas production of 2,250mmcfd. When contacted, Naser Ahmed, external affairs director of Chevron Bangladesh, said: Chevron manages the natural gas fields in accordance with the terms of the Production Sharing Contract with the Government of Bangladesh and Petrobangla. Daily production rates from Chevron's fields vary according to the demands placed by Petrobangla, he said. Petrobangla Director Muhammad Imaduddin however said: The risk has been taken according to the demand for gas. He declined to comment when asked about possible crises in gas production if processing plants break down. Ijaz Hossain, a professor of Chemical Engineering Department at the Bangladesh University of Engineering and Technology (Buet) said: Petrobanglas decision is irrelevant and it might cause a catastrophe in this sector. He suggested that Chevron should increase the capacities of its plants if it had to continue to extract more than what is prescribed. Another Buet teacher Prof M Tamim said: Petrobangla and other concerned authorities must consider the matter before an accident occurs. IOC wants to extract gas as fast as earlier as it will help them to make profi t. The company gets same rate during the whole time of gas extraction which results to make the tendency to extract hurriedly. Energy Division Secretary Md Mozammel Haque Khan refused to comment on the issue saying he did not know about the technicalities of gas extraction. We will not take any steps that will harm the country, he assured.