Govt mulls doubling oil, gas project funding

DHAKA: The government has planned more than doubling its funding for oil and gas development projects to Taka 16.14 billion ($198 million) in the July 2012-June 2013 fiscal year from Taka 7.76 billion a year earlier.

A senior Energy Ministry official disclosed it on Wednesday.

Projects slated for the year include the drilling of 10 development wells, installation of two gas compression stations and construction of a gas pipeline from the country`s northeast to Dhaka, Chittagong and the southwest, the official said

The country is also looking to raise domestic output, build more than a dozen petroleum storage tanks, and produce 1 million mt of bituminous coal from the state-owned Barapukuria coalmine.

It is also evaluating bids submitted by three global players to build a floating LNG terminal with a capacity to handle 5 million mt/year of LNG.

Bangladesh is seen to import 5.8 million mt of petroleum products in its fiscal year ending June 30, up 13.72% year on year, which is set to increase in fiscal 2012-13 as new oil-fired power plants come online.

Its natural gas production increased to 2.15 Bcf/d in 2011-12, from 2 Bcf/d a year earlier, but still fell short of domestic demand, which is estimated at 2.7-3 Bcf/d and seen to be increasing by 14%/year.

Source: Platts
BDST: 0906 HRS, JUN 21, 2012
RS