Bangladesh to build new pipeline for Chevron gas

DHAKA, July 11 (BestGrowthStock) – Bangladesh will build a 100-km
(62 miles) pipeline to transport natural gas from three fields
in the northeast of the country operated and being expanded by
U.S. oil company Chevron (CVX.N: ), a senior energy official said
on Sunday.

“We have decided to build the pipeline at a cost of $150
million as Chevron says production at the Moulavi Bazar,
Jalalabad and Bibiyana gas fields will be more than doubled to
1,840 million cubic feet (mmcft) a day,” said Mohammad Hussain
Monsur, chairman of the state-run Bangladesh Oil, Gas and
Mineral Corporation, or Petrobangla.

The increased production will be available by end of 2012,
he told Reuters, adding that it comes at a time when the south
Asian country is facing yawning gap between supply and demand
for gas.

Monsur said to hasten the project, Bangladesh will avoid
seeking funds for the pipeline from World Bank or any other
multilateral financing agency but would pay for it from the
state coffers.

He said Chevron had informed Petrobangla that it had
identified additional gas production capacity and needed
infrastructure to connect the fields with the national supply
network.

Bangladesh at present faces up to 400 mmcft gas shortages a
day, with the authorities supplying at best nearly 2,000 mmcft
per day.

Chevron currently produces almost half the country’s gas
supplies under two production sharing contracts.
(Reporting by Serajul Islam Quadir; Editing by Anis Ahmed and
Hans Peters)

Bangladesh to build new pipeline for Chevron gas