US energy company Chevron yesterday announced that its Bangladeshi subsidiary had commenced natural gas production from the Bibiyana Expansion Project in the north eastern part of the country.
The project includes an expansion of the existing gas plant to process increased volumes of natural gas from the Bibiyana Field, additional development of wells and an enhanced gas liquids recovery unit.
“As the leading international investor in Bangladesh, Chevron values its partnership with the people of Bangladesh in support of the nation’s energy security and long-term economic development. The Bibiyana Expansion Project is a further example of our commitment to invest for the long term and create value for our partners and the communities that we serve,” Melody Meyer, president, Chevron Asia Pacific Exploration and Production said yesterday at a press release.
Prime Minister Sheikh Hasina is scheduled to formally inaugurate the newly refurbished Bibiyana Gas Field next month.
The project is expected to boost Chevron-operated natural gas production capacity in Bangladesh by more than 300 million cubic feet per day to 1.4 billion cubic feet per day.
In addition, the project is expected to increase its natural gas liquids production capacity by 4,000 barrels per day to 9,000 barrels per day. Chevron’s Bangladesh subsidiary has a 99% working interest in Bibiyana.
The US oil giant has invested over $500 million to implement the expansion plan.
Chevron’s new gas supply will be delivered through the newly installed Bibiyana-Dhanua 137-kilometre 36-inch diameter transmission pipeline, implemented by the state-owned Gas Transmission Company Limited (GTCL).
Petrobangla says Bibiyana is the largest gas-producing field, currently producing 896mmcf gas per day.
The expansion programme, that was launched two years ago and is considered the largest foreign investment project in the history of the country’s energy sector, is expected to increase Bibiyana’s production by 35 percent.
“The Bibiyana expansion represents Chevron’s commitment to developing new resources to meet energy demand in Asia,” said Jay Johnson, senior vice-president, Upstream, Chevron Corporation. “The expansion is one of a spate of projects across the region that will deliver on Chevron’s strategy to grow profitably in core areas.”
Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; and develops the energy resources of the future, including bio-fuels.