Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Natural gas production from the state-owned Titas gas-field is feared to be depleting rapidly due to 'failure' in installing well-head compressors on producing wells.
Titas field is owned by the Petrobangla's wholly owned subsidiary - the Bangladesh Gas Fields Company Ltd (BGFCL). It is the country's largest producing gas-field among the state-operated ones.
The BGFCL in a projection in 2016 apprehended that natural gas flow can no longer maintain the gridline pressure by 2021 without installation of half a dozen compressors.
Wellhead pressure of the wells has been decreasing at an average annual rate of 90 pounds per square inch (psi), the BGFCL stated.
But ironically, until to date, the BGFCL could not install a single wellhead compressor there.
The BGFCL's failure to increase natural gas supply from Titas gas-field worsened the country's overall natural gas supply situation. It prompted the government to import expensive liquefied natural gas (LNG) to meet the mounting natural gas demand.
When contacted, a senior official of the BGFCL said, "We are trying to install seven reciprocating compressors with the capacity of 60 million cubic feet per day (mmcfd) of natural gas."
An international tender was floated a couple of years back to install the compressors. But the selected bidder, who was the lowest, adopted 'fraudulent' practices, and failed to provide performance guarantee against the project work, he alleged.
The BGFCL board of directors also blacklisted the selected firm and its local agent, barring them from taking part in any bidding process of the Petrobangla or its subsidiary companies in future.
The board also decided to cancel the bidding process and proceed for re-bidding, the official further said.
The BGFCL did not invite other qualified bidders for awarding the project, as their financial offers were much higher than the estimated budget of the company for the project, he added.
"We are preparing to re-tender for the project to select a qualified company."
The BGFCL official, however, could not say when the project works will be completed, and how long the current gas flow from the field will continue.
The Asian Development Bank (ADB) will be funding the project with co-financing from the Asian Infrastructure Investment Bank (AIIB), having an estimated cost worth US$447.60 million.
Under the project, five compressors will be operating at a time, while two compressors will remain standby. Each compressor will daily require 5.0 mmcfd of natural gas as fuel.
The daily output capacity of compressed gas from these compressors will be 300 mmcfd.
Energy expert Dr Badrul Imam said, "Installing wellhead compressors in Titas gas-field should be completed soon on priority basis."
'Precious' gas will remain below surface, if the compressors are not installed, said Mr Imam, a faculty member of Geology Department of Dhaka University.
Meeting the country's mounting natural gas demand with imported LNG will be too costly, he added.
Titas gas-field was discovered in 1962, and commercial gas production from the field commenced in April 1968.
According to the Petrobangla, the total recoverable gas reserve from Titas gas-field is estimated at 7.58 trillion cubic foot (TCF). Until February 29, 2020, a total of 4.85 TCF gas or 64.05 per cent of its reserve has been recovered.
The field is now supplying around 430 mmcfd of gas from 26 producing wells against the capacity of 851 mmcfd.
Gas seepage in Titas gas-field was a major concern, and the BGFCL plugged and abandoned its well no-3 after hiring the US firm Boots and Coots to contain gas leakage in the nearby localities several years back.