Bangladesh expects enough gas supply by March

DHAKA, Jan 23 (Reuters) Bangladesh hopes to end a long-running shortage of gas supply in March when a prime field being developed by Chevron Corp. is due to start production, energy officials said on Tuesday.

The Bibiyana gas field, with projected initial production capacity of 200 million cubic feet (mmcf) per day, will have enough gas to offset the current 100 mmcf shortage in Bangladesh, they said.

The country is facing a daily shortage of up to 100 mmcf of gas, against 1.6 billion cubic feet (bcf) of demand, they said.

The shortage is hurting power generation, operation of compressed natural gas filling stations and causing sufferings to household users.

''The crisis could be over in early March this year when the country's second-largest Bibiyana gas field begins production,'' one official said.

U.S. energy major Chevron was due to begin production at the Bibiyana gas field in Block 12 in northeastern Habiganj district from end-December 2006. But a series of political unrest, including crippling transport blockades have delayed the start, officials said.

The energy ministry asked Chevron, British firm Cairn Energy and Canadian Niko Resources Ltd. last week to increase gas production soon in their respective fields to meet the country's growing demand.

''All preparations have been made to start the production of natural gas from the Bibiyana field by early March this year.

Initially the field will produce 200 mmcf of natural gas per day,'' according to a Chevron statement seen by Reuters.

Chevron has so far spent 0 million on the Bibiyana field, raising its total investment to 0 million in Bangladesh, a company official said.

State-run Petrobangla buys gas from multinational companies in Bangladesh to serve its national grid supplying to industrial and domestic users.

Bibiyana has an estimated 5.5 trillion cubic feet (TCF) of natural gas and 30.7 million barrels of condensates in reserve.

The country's first offshore gas field, Sangu, is fast depleting, prompting Cairn to repair two wells in an effort to raise output by 30 percent to 125 mmcfd by the end of the month. It will drill more than five wells offshore and invest million more.

Bangladesh produces gas from 13 out of 23 discovered fields and has 14 tcf of proven and recoverable gas reserves based on current estimates. More than 3 tcf of gas have been extracted.

REUTERS AB PM1651