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Chevron to invest $500 million in Bibiyana gas expansion

Chevron to boost Bangladesh gas and NGL production

Chevron Corporation (Chevron) is one of the largest foreign investors in Bangladesh, providing employment and supplying nearly 50% of the country’s natural gas consumption.

Chevron produces natural gas from the Bibiyana, Jalalabad and Moulavi Bazar fields where Chevron Bangladesh holds a 98% working interests.

Since 2001, Chevron operates the Jalalabad gas field in northeastern Bangladesh with Petrobangla.

The condensate from the field is used to make products such as gasoline and diesel fuel.

The field is one of the most cost-effective sources of energy for Bangladesh and has been in production since 2001.

The Block 14 in the Moulavi Bazar field  in northeastern Bangladesh, is in operation since 2005.

Discovered in 1998 in the Habiganj District, northeast of Bangladesh, the Bibiyana block 12 field is one of the most significant natural gas discoveries in Bangladesh.

In 2004, Chevron signed a gas purchase and sales agreement with Petrobangla and launched a first phase of development program with a:

 – 600 million cf/d gas processing plant, the largest in Bangladesh

 – Natural gas pipeline to connect to national gas distribution grid

 – condensate pipeline

 Bibiyana first phase was completed and started operations in 2007 to supply reliable, clean energy for the next 20 to 30 years.

 In 2011, Chevron total daily production averaged 915 million cubic feet of natural gas and 4,000 barrels of condensate.

While  Bibiyana is a world-class natural gas resources holding the highest quality and largest size of reserves in the country, Bangladesh suffers from gas shortages of up to 500 million cf/d.

In addition Bangladesh currently produces up to 55% of its electricity using natural gas

In this context, Chevron made the final investment decision (FID) for a $500 million capital expenditure at the Bibiyana gas field.

Chevron Bibiyana gas expansion: biggest project ever in Bangladesh

Chevron began front-end engineering and design (FEED) work on the Bibiyana gas expansion project in July 2011.

As a result of this FEED, Bibiyana gas expansion project will include a:

 – Gas processing plant expansion

 – New development wells

 – Enhanced natural gas liquids (NGL) recovery unit.

With this expansion Chevron is planning to increase the total production capacity in Bangladesh by:

 – 300 million cf/d, to 1.4 billion cf/d of natural gas

 – 4000 boe/d of natural gas liquids (NGL)

This production of condensate will save Bangladesh to import $200 million worth of liquid fuels per year at current market value. 

Chevron expects the completion of the Bibiyana gas expansion for first production in 2014.

Chevron Bangladesh in brief

Chevron Corporation is an international oil company (IOC) and one of the world’s leading energy companies.

With approximately 56,000 employees,   in approximately 180 countries around the world, Chevron conducts business upstream, midstream and downstream, in exploration, production and transportation of crude oil and natural gas, and refining, marketing and distributing fuels and other energy products.

Based in San Ramon, California, USA, Chevron is well-known to work in extremely difficult environments such as ultra-deep water and remote locations.

In Bangladesh, Chevron supports the country in its efforts to maximize nation’s energy potential by actively investing in projects that deliver more gas to Petrobangla, the national oil company (NOC).

Chevron and Petrobangla are co-operating with production sharing contracts (PSC) where Petrobangla is also Chevron‘s unique customer in Bangladesh.

With $500 million capital expenditure in the Bibiyana gas expansion project, Chevron will in the same time achieve the largest foreign investment ever in Bangladesh and consolidate its regional Market Leadership as the largest holder of natural gas resources in Asia-Pacific among the International Oil companies (IOCs). 

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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