Home ›› 01 Aug 2022 ›› Front
Three state-owned companies – managing 17 of Bangladesh’s currently active gas fields – produce around 850 million cubic feet of gas per day (MMcf/d), which pales in comparison to nearly 1,500 MMcf/d produced by two international companies managing only four gas fields.
The state-run Bangladesh Gas Fields Ltd (BGFCL) manages the country’s largest gas field Titas, which still has reserves of 1.4 trillion cubic feet (TCF). The BGFCL produces 404 million MMcf/d of gas from 27 wells there, shows data from Petrobangla.
However, Chevron – an American multinational energy corporation – produces more than 1,200 MMcf/d from 26 wells in the Bibiyana gas field. A comparison of the two sides clearly shows that Chevron is producing nearly triple the amount of gas with less number of wells.
The three state-owned gas companies – the Bangladesh Gas Fields Ltd (BGFCL), Sylhet Gas Fields Ltd (SGFSIL) and Bangladesh Petroleum Exploration and Production Company (BAPEX) – operate under Petrobangla.
Seventeen fields – managed by these domestic companies – still have proven gas reserves of around 7.4 TCF, data from the Petrobangla shows. However, they are meeting only 20 per cent of the country’s demand.
The four gas fields – managed by US-based Chevron and UK-based Tullow – have reserves of 1.5 TCF. Chevron manages the Jalalabad, Moulvibazar and Bibiyana gas fields, and supplies around 1,450 MMcf/d of gas – singlehandedly meeting 75 per cent of Bangladesh’s total demand.
It is evident that the state-owned gas companies have lagged far behind in terms of gas production. Energy experts and stakeholders blamed the issue on the inefficiency of gas companies under Petrobangla, and their lax attitude towards renovating closed wells.
Speaking to the Business Post, renowned mining expert Professor Badrul Imam said, “If production from any gas well decreases, a company such as Chevron can implement various techniques to maintain gas production at an acceptable level.
“The domestic gas companies lack the capacity to do the same.”
Echoing the same, Petrobangla Chairman Nazmul Ahsan said, “Our companies are far behind in terms of technology compared to Chevron. However, as we are extracting less gas, the gas fields we are managing will last longer.
“The international oil companies will run out of gas sooner due to their focus on over-extraction.”
Scope to boost production by 800 MMcf/d
A study on Bangladesh’s gas fields, conducted by US-based global energy service Schlumberger back in 2011, stated that the country has the scope to increase production by 400 MMcf/d to 800 MMcf/d through renovation of gas fields, and the process would cost around $125 million.
Insiders say Petrobangla has taken no action on the matter even though eleven years have passed since the report came out.
According to Petrobangla, BGFCL manages 52 wells in five currently active gas fields. The company is producing 619 MMcf/d of gas through 39 wells, while 13 remain closed for five to seven years.
SGFCL manages 26 wells in another five gas fields. Of those, 11 are producing only 92 MMcf/d of gas, while 15 are closed. Bapex manages 44 wells in seven gas fields. This company produces 143 MMcf/d of gas through 15 wells, and the remaining 29 are closed.
Responding to a query, Bapex Managing Director Mohammad Ali said, “No gas has been found in the 29 wells, so we have abandoned those.
“Besides, due to a lack of pipeline, gas cannot be extracted from Shahbazpur gas field in Bhola as per its capacity. We are currently extracting 50 MMcf/d of gas from this field, but it is possible to boost the production to 150 MMcf/d if more transmission lines are built.”
Addressing the issue, Prof Badrul Imam said, “The government spends Tk 44,000 crore annually on LNG imports, but domestic gas companies are worried about the construction costs of gas pipelines.”
Vast reserves underutilised
SGFCL manages one of the country’s biggest gas fields in Sylhet’s Kailashtila. Despite having nearly twice the reserves (2 TCF) as Bibiyana (1.2 TCF), the field is producing only 68 MMcf/d of gas.
Rashidpur gas field – also managed by SGFCL – has 1.7 TCF of gas, but it produces 43 MMcf/d of gas on average.
The number 9 well in Rashidpur, which can produce 14 MMcf/d to 19 MMcf/d of gas, became ready for extraction in 2017, but SGFCL has yet to begin the process. Bangladesh spends more than Tk 5 crore per day to import the same amount of LNG.
A senior officer of Bangladesh Energy Regulatory Commission (BERC) said, “There is a pipeline from Well 9 to Rashidpur Well 7, around five kilometres away. It is possible to boost the gas production from that region only by hooking up the pipelines.
In this regard, SGFCL Managing Director Mizanur Rahman said, “Considering the serious energy crisis we are currently suffering from, the 15 closed wells of SGFCL look very promising. We have begun the process of work-over at those wells.
“We have also submitted DPPs for drilling 10 more exploration wells. The SGFCL will be able to produce more than 290 MMcf/d gas by 2025.”
A professor of Petroleum Engineering at the Bangladesh University of Engineering and Technology (BUET) Mohammad Tamim said, “Gas production may decrease due to various reasons. When a well runs out of gas, another pocket has to be found.
“The principle of gas science is to maintain maximum production for as long as possible through technical methods. Our own companies have failed in this regard.”
Petrobangla says 28 gas fields have been discovered in Bangladesh so far. Proven reserves in these fields amount to 21.4 TCF, and another 8 TCF are considered probable reserves. The country has extracted around 17 TCF till date.
The data indicates that only 4 to 5 TCF of proven reserves remain in Bangladesh. About a TCF of gas is being extracted every year, so the country’s proven reserves are expected to expire in 2026.
