The international oil company Chevron has proposed the setting up of a centrifugal compressor at the Bibiyana gas field under Production Sharing Contract (PSC) aiming to boost gas pressure from the field.
“Chevron proposed to set up a compressor at the Bibiyana gas field. We have examined the proposal and trying to reach a decision,” Director (PSC) of Petrobangla, the state-run oil, gas and mineral corporation, Md Quamruzzaman told the Dhaka Tribune.
A Pertobangla official seeking anonymity said instead of the centrifugal compressor if a reciprocating compressor was set up, the cost would reduce significantly.
He said Chevron had already placed a proposal involving over $500 million to set up a compressor at Bibiyana.
“Such a compressor has never been used in Bangladesh and it is also not confirmed whether there is a need for it. Under the PSC, the cost will ultimately have to be borne by the government,” he added.
However, Energy and Mineral Resources Division Secretary Abu Bakar Siddique told the Dhaka Tribune that the government was yet to make any decision on the proposal.
“We believe the proposal will help increase gas recovery from the Bibiyana field, playing a crucial role for Bangladesh’s energy security,” said Sabrina Khan, media officer of Chevron.
Centrifugal compressors use a rotating disk or impeller in a shaped housing to force the gas to the rim of the impeller, increasing the velocity of the gas.
On the other hand, reciprocating compressors use pistons driven by a crankshaft. They can be either stationary or portable, can be single or multi-staged, and can be driven by electric motors or internal combustion engines.
According to the PSC, a gas field is considered to have a 25-year lifespan. As the production started in March 2007, Bibiyana gas field is expected to be viable until 2032.
However, Chevron, in a recent presentation to Petrobangla, said production from Bibiyana would start to decline after 2018.
According to the Bangladesh Economic Review 2014, the initial reserve of gas at Bibiyana was 7.4 trillion cubic feet (tcf), of which 5.7 tcf was proven and recoverable. At the beginning of 2014, the remaining reserve amount at Bibiyana gas field was 4.2 tcf.
This is bigger than the last assessed figure of the country’s oldest producing field, Titas, the reserves of which are currently being reassessed.
Bibiyana is now the largest gas producing field of the country providing about 40% of Bangladesh’s total domestic supply of natural gas.
“The details of the compressor selection are based upon the optimal technical alternative for the Bibiyana reservoir conditions. As laid out in the PSC, as with any project, we have to discuss with Petrobangla to reach an alignment on specific technical aspects and scope,” Sabrina said.
“As the operator of the Bibiyana Bangladesh PSC gas field, Chevron works to identify the most cost-effective method to ensure reliable gas production. Chevron already has a strong track record of increasing gas production in Bangladesh at a low cost,” she added.
Chevron Bangladesh has showed interest in two PSCs in Bangladesh, covering Block 12 (Bibiyana field) and Blocks 13 and 14 (Jalalabad and Moulavi Bazar fields) in the northeastern Sylhet region.
The company sells the gas it extracts to the government under long-term sales agreements.