DHAKA Jan 9 Bangladesh will build a new
gas pipeline to bring output from Chevron Corp fields to
the capital Dhaka and to western regions as it combats
State-run Gas Transmission Company Limited (GTCL)on Monday
signed an agreement with MAN Industries (India) Limited to
construct a 137 km (86 miles) gas transmission pipe line, a
senior official said.
"To meet growing gas demand of power plants and
manufacturing firms, we will implement the project by the middle
of 2013 with a cost of $201 million," said Aminur Rahman,
managing director of the GTCL.
He told a news conference that all the resources would be
funded by the Bangladesh government.
"The pipeline will be used to transport additional gas to be
produced by U.S. oil firm Chevron at Bibiyana and Jalalabad gas
fields as well potential new gas reserve at Sunetra," Rahman
All these fields are located at Sylhet region, 280 km (175
miles) north east of Dhaka.
Last year the Bangladesh energy authority asked Chevron to
raise gas production by 500 million cubic feet (mmcft) a day to
The new pipeline is designed for a total capacity of 850
mmcft and will ensure additional gas supply to Dhaka and Western
regions of the country.
Bangladesh produces about 2,000 mmcft gas a day against the
demand of more than 2,500 mmcft a day, the official said.
Due to acute shortages the state-run Bangladesh Oil, Gas and
Mineral Corporation, or Petrobangla, has stopped new gas
connections to industrial and manufacturing firms across the
county since July 2009, ultimately affecting the growth of the
Natural gas connections to households also remained
suspended since July 2010. The government is trying to cope with
the supply shortfall by gas rationing and keeping the compressed
natural gas filling stations shut for six hours a day.
The energy official said that Chevron was now carrying out
exploration and drilling activities to enhance gas production.
The proposed pipeline will run through several districts,
river and vast haor (low-lying) areas.
(Reporting By Serajul Quadir; Editing by Anis Ahmed and William