Gas-short Bangladesh finds major new deposit

Dhaka: Bangladesh has announced the discovery of a new reserve of an estimated 1 trillion cubic feet (TCF) of gas in northern Rashidpur in a major boost to the country's ailing energy sector.

"This reserve will significantly help reduce the country's perennial gas crisis," Hussain Monsur, chairman of Petrobangla, told Gulf News a day after the state-run energy explorer made the discovery.

The find came after a survey of the national gas field of Rashidpur found the additional capacity to add to the current reserve which is estimated to be as high as 12 TCF.

The Petrobangla chief said this was a major development which could provide gas at a cheaper price compared to that offered by international oil companies.

The 3D seismic survey was conducted by Bangladesh Petroleum Exploration and Production Company Ltd (Bapex) in the field, which spans 325 square kilometres.

Supply crunch

Bangladesh currently has a gas supply of about 2,000 mmcf (million cubic feet) per day against a demand of 2,500 mmcf.

The acute energy crisis amid rapid economic growth has forced the country to stop the supply of gas to energy-guzzling new factories.

The Rashidpur field was discovered in 1960 and has so far supplied 460 billion cubic feet to the national grid. The new capacity was detected in the field's unexplored eastern part which is separated by a geological fault, officials said.

The government approved a fund of 1.64 billion Bangladeshi taka to conduct surveys in Titas, Bakhrabad, Sylhet, Kailashtila and Rashidpur in October 2008.

Bapex has completed surveys of Kailashtila and Sylhet and is processing the data. It is also preparing to start on the Titas field.

Earlier this year Bangladesh signed a production sharing contract with Houston-based ConocoPhillips for drilling in "undisputed areas" in two deep sea blocks. Dhaka is currently in a dispute with India and Myanmar over the inner lines of its maritime boundary.