Energy Bangla - Gas Production Crunch in Bangladesh

When the world is deeply absorbed enjoying the superlative displays of World cup soccer in South Africa ill fated Bangladeshis in different parts of the country can not witness live action in Television due to frequent load shedding induced gas supply shortages. Over the last few days two International Oil Company [IOC] operated producing gas fields Bhangura and Shangu has suffered forced outage. These have deepened crisis of already underperforming gas sector. The present coincident peak demand of natural gas is about 2400MMCFD. Despite transmission constraints Petrobangla was evacuating about 2000MMCFD. Keeping production of four of the seven Urea Fertilizer Plants shut down Petrobangla was diverting more gas to power plants. Several other demand management has been introduced to mange the situation. Still gas draught prevailed. Gas crisis brought economic activities to almost stand still.

It was expected that government would have taken additional precautionary measures to maintain the gas production and supply to power plants steady so that Bangladeshis like the rest of the world could enjoy the world cup soccer smoothly. But that was never to be. First Irish Company Tullow operated Bhangura Gas Field in Comlla region suffered forced shut down for movement of sales line. Petrobangla Chairman after visiting the site promptly announced that the problem will be remedied in 3 -4 days by Tullow expatriate experts. After 10 days media reports indicate that Tullow experts could not identify reasons for the failure in the sales line which caused the forced outage.Tullow supplied 120MMCFD from Bhangura gas field and supplied this gas through a sales line to GTCL operated National Grid at Ashuganj- Bakhrabad Pipeline off take.

The consequence of this unfortunate action caused further acute crisis in Gas transmission and gas system management. 8-10 hours load shedding again returned. All major gas consuming industries started suffering further gas draught. Nation started getting choked from enjoying the soccer live shows. When this was going on Shangu offshore gas field reported forced outage due to failure of all their gas generators of offshore platform. The unmanned offshore platform generators are remote controlled from onshore. They have one generator on duty and two stand by. It is reported that all three failed. Rough sea due to cyclonic weather did not permit operators from shore reach the platform to restart manually the generators. This makes Chittagong deprived of another 34 MMCFD. With Chittagong City Mayor Election due tomorrow this may make adverse impact as well. These gas failures coincided with World Cup Soccer and CCC election.

International Oil Companies are operators of Gas fields under PSC and GPSA with Petrobangla / GOB. Petrobangla still owns this gas fields. It is the right of Petrobangla to ask explanations from IPC about the reasons of sudden glitch and expect required remedial action within shortest possible time. Usually GTCL maintains contact with IOCs at operating level and two directorates of Petrobangla- Operation and Petroleum Concession Directorate [PCD] are responsible for managing and coordinating with IOCs. While failure of Shangu Gas field operation has some logic the failure of Sales line of Bhagura Gas Field is conspicuous.

Before we analyze the reasons let us have a view of Production situation on 14-15th June 2010

A . Production From BGFCL Operated Gas Fields

Gas Fields	Producing Gas Wells	Capacity [MMCFD]	Production [MMCFD]	Remarks
Titas	14	420	410	Leakage Problem not remedied. Further development is pending.
Bakhrabad	4	35	35	Waiting for Redevelopment for several years
Habiganj	9	240	237	Further development is pending
Narshingdi	2	35	32
Meghna	0			Waiting for Work over
5 Fields	29	730	714

Titas field developed leakage in 2006. Some actions have been taken through killing Well#3 and thereby loosing about 30MMCFD production capacity. Gas is still bubbling through hundreds of craters in gas field command area. The contingency plan to remedy the situation is still pending. Further development of the field after 3D seismic and drilling of additional wells is hibernating. Same situation applies for prolific Habiganj Gas Field as well. Bakhrabad is due for redevelopment since late nineties of last millennium. Similarly work over of Meghna Gas Field is also overdue.

B. Production from SGFL Operated Gas Fields.

Gas Fields	Producing Wells	Capacity [MMCFD]	Production [MMCFD]	Remarks
Sylhet	01	2	10	Waiting for further development
Beanibazar	02	18	14	Still operating with inappropriate gas treatment plant
Kaillashtilla	06	97	89	Waiting for further development
Rashidpoor	05	53	49	Waiting for further development
4 Fields	14	170	162

Chatak Gas Field including virgin structure Tengratilla was taken out of SGFL in the name of marginal gas fields and handed over to Canadian company NIKP Resporces on the basis of their unsolicited offer in controversial manner. Niko experienced two massive gas blow outs at Tengratilla .Potential gas source at Chattak and Tengratilla remains unexploited.Another Petrobangla owned Gas Field Jalalabad in Sylhet region was included in the package of exploration blocks 12, 13 and 14 and awarded to Occidental also on the basis of unsolicited offer. Unocal and now Chevron is now operating the field. Fenchuganj gas field has been developed by BAPEX and is now operated by it.

Beanibazar gas field is very rich is higher hydrocarbon content. If the gas could be treated in appropriate Molecular Sieve Turbo Expander plant with associated NGL fractionation and LPG facilities it could requirement of LPG to a great extent. But quoting contingency action this field in 1998 was commissioned with a gas plant procured for dry Feni Gas Field. Successive government for their dilly dally tactics made NGL extraction from Beanibazar and Koillastilla suffered a great deal. . The original plant was supposed to be set up at Ashuganj and a liquid pipeline was built parallel to North –South Pipeline. The liquid transportation line became happy hunting ground for condensate mafias.

C Production from BAPEX Owned Gas Fields [14th -15^th June 2010]

Gas Fields	Producing Wells	Capacity [MMCFD]	Production [MMCFD]	Remarks
Fenchuganj	2	32	24
Salda	2	11	10	Must be investigated whether it has common structure with Tripura Gas Fields.
Shahbajpoor	1	15	08	Not Linked with National Gas Grid
3 Fields	5	58	42

Production from Petrobangla Companies Operated Gas Fields

A+B+C = 714+162+42= 918MMCFD. 12 gas fields from 48 wells produced 918 MMCFD

BAPEX is in the threshold of taking up major responsibilities of carrying the burden of exploration and development in extensive onshore areas. Modern drilling Rig has just arrived. Exploration at Sreekail.In Kapasia, Mobarakganj and other prospects in its allotted blocks and development of Semutang, Salda, Work over of Meghna and some other gas wells of producing fields are major challenges. Nation expects that BAPEX proves equal to its task. The challenges BAPEX need to meet are

Competent Exploration and Drilling professionals to plan and execute exploration drilling. Question needs to be answered whether it will act as Drilling manager or a drilling contractor or both?
Can BAPEX overcome its past not too bright records at Sreekail and Shahbajpoor exploration? Do they have capacity to manage modern drilling rigs and 3D Seismic crews?

D. Gas Production from IOC Operated Petrobangla Gas Fields [ 14-15^th June 2010.]

Cairn, Chevron , Tullow and NIKO are IOCs operating Petrobangla Gas Fields Under PSC

Gas Fields	Producing Wells	Capacity [ MMCFD]	Production [MMCFD]	Remarks
Shangu Offshore	06	33	24	Waiting PB approval for Well Intervention at Shangu
Jalalabad	04	200	148	Gas Transmission Constraint
Moulavibazar	04	75	58	Waiting for further development
Bibiyana	12	600	722	Over producing
Feni	01	03	Nil	Suspended Over Dispute
Bhangura	04	100	Nil
Six Gas Fields	31	1043	962

Total Production: 18 gas fields from 79 wells produced 918 +962 = 1880MMCFD on 14^th-15yh June 2010. After Shangu glitch it came down to 1880 -24= 1850MMCFD

Why Bhangura Failed?

Bangladesh is in gas business from 1950s when we are part of Pakistan. Except liberation war damages there is no instance when a gas transmission facility failed. The failure of gas sales line can not happen if it is designed properly and constructed using the materials of right specification. In Bangladesh every gas production facility and gas transmission pipeline requires proper testing in presence of Chief Inspector of Explosives or his authorized representative. The facility can only be commissioned after written approval of CIE.

After failure of Bhangura Gas Sales pipeline it requires to be seen

Whether the Gas Sales pipeline was correctly designed to ASME B31.8 pr equivalent International standard?
What was the Maximum Allowable operating Pressure [MAOP]?
Whether correctly specified line pipes [API 5LX ERW/ SAW/ HSAW] and other fittings were used?
Whether the pipes were welded by approved high pressure welders according to approved welding procedure?
Whether pipeline was swabbed, gauged, cleaned and hydro tested according to approved testing Procedures in presence of Chief Inspector of Explosives and Petrobangla representatives?
Whether recent operation exceeded approved limit?
Whether the off take to Ashuganj Pipeline was properly anchored?
Why Pipeline Experts of Bangladesh were not immediately mobilized by Petrobangla to confront the situation?

The production glitch at Bhagura Gas Field and its associated impacts has caused serious embarrassment to the government and compounded immense miseries to people of Bangladesh/ PM Hasina as Energy Minster must own this crisis and dig deep to reach the bottom of gas sector lack of professionalism. Nation can not continue to pay through its nose for inefficiency and poor performance of few non professionals in Energy Sector management.

(Engr. Khondkar A Saleque, Ex Director [Operation] GTCL)