Bangladesh Seeks $100 mn ADB Loan for Gas Sector

Dhaka, Bangladesh | April 22, 2008 by D-8 Secretariat

Bangladesh has sought a $100 million loan from the Asian Development Bank (ADB) to develop its largest gas-producing Titas field. “The ADB has agreed to provide the loan as we had asked for,” said M. Tamim, a special aide to the head of Bangladesh’s army-backed interim government, responsible for the ministry of power, energy and mineral resources.

Titas, located in Brahmanbaria, 100 kilometres (62 miles) east of the capital Dhaka, produces around 450 million cubic feet (mcf) of gas per day and is operated by state oil and gas agency Petrobangla. A well of the field has been closed for several months since a blowout in December 2006, officials said.

The energy division of the ministry has asked state-run Bangladesh Gas Fields Company Limited (BGFCL) to examine all the wells at Titas field. “Gas has been leaking through that well for years and it may take up to a year to have an overall check-up and remedy it,” Tamim said. He said the fund would be required for the maintenance of all 10 wells of the field.

An ADB official said the bank had agreed in principle to approve the fund for the overall development work of the field. “We will place the proposal to the board of directors for final approval,” the official said.

The Titas field has 5.13 trillion cubic feet (tcf) of gas in reserve, of which 2.46 tcf has been used since production started at the site in 1968. Bangladesh produces up to 1,738 mcf of gas a day against daily demand of 1,833 mcf, officials said.

Bangladesh’s proven and recoverable gas reserves of 13.54 tcf and the gap between demand and supply will widen further over the next five years if no new gas is found, officials said.

D-8 Organisation is scheduled to hold the 4th D-8 Work Group meeting on Energy, in Cairo in the period from 29 to 30th of April, 2008. D-8 Secretary General, Dipo Alam, said that the objective of this meeting is to engage the energy experts in the D8 member countries into a thought provoking discussions on the current Energy challenges facing these countries, and to exchange experience on the energy policies adopted in the member countries.

Read Also

• Turkey offers Bangladesh $1bn for Infrastructure Loan
• Bangladesh’s Private Sector Credit Continues To Rise
• Bangladesh May Procure Crude from Iran
• Bangladesh Gets Its First Biomass Plant
• Bangladesh gets a $465 million loan from the Asian Development Bank (ADB)
• ADB board to formally approve $500 million loan for Pakistan
• D-8 Concludes Meeting on Renewable Energy Sector
• Pakistan Seeks Self-Reliance in Indigenous Fuel
• Reaching Out Into Remore Areas: Bangladesh Recent Remittance Manoeuvre
• Nigeria to March with $20bn Expansion and Spending on Oil Sector