Dhaka, Bangladesh (BBN)- Chevron Bangladesh has unveiled a plan of investing US$ 500 million to expand natural gas production at its Bibiyana gas field in north-western Sylhet region of Bangladesh.
"The project includes expansion of a gas plant to process increased gas volumes from the field, additional development of wells and an enhanced gas liquids recovery unit," Chevron Bangladesh President Geoff Strong said while announcing the final decision of investment at a city hotel on Monday.
He also said the project is estimated to cost $500 million, which makes it the largest ever foreign investment scheme in the history of Bangladesh.
The Bibiyana project will increase production of condensate by 4,000 barrels per day, which will save the import of fuel oil with a current market value of around $ 200 million per year, he added.
"Bibiyana is the largest gas producing field in Bangladesh and a leading example of how technology, investment, and expertise can assist countries to utilise domestic resources to secure reliable, cleaner-burning, and affordable sources of energy," Chevron's head of Asia Pacific upstream division Melody Meyer said in a statement.
Bangladesh needs more gas as the country's factories and power plants are not getting adequate gas, said Finance Minister Abul Maal Abdul Muhith while speaking at the function as the chief guest.
He also said the country requires much more exploration activities to boost output.
US Ambassador to Bangladesh Dan Mozena said that this is a big step forward for the country's development. It will help the country to graduate to a middle income one, he expressed hope.
BBN/SSR/AD-31July12-11:32 am (BST)
