Natural Gas Infrastructure and Efficiency Improvement Project (ADB-45203-006)

Countries
  • Bangladesh
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Nov 18, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Sectors
  • Energy
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 227.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Aug 11, 2017

Disclosed by Bank Aug 19, 2016


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Project Description
DESCRIPTION The project aims to (i) improve efficiency in natural gas production by installing seven wellhead gas compressors at location A of Titas gas field, and (ii) expand natural gas transmission pipeline capacity by constructing an approximately 181-kilometer, 36-inch parallel gas transmission pipeline from Chittagong through Feni to Bakhrabad. PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY In Bangladesh, natural gas exploration and production has not kept pace with demand growth. Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) has not done extensive exploration for many years due to lack of public funds. Exploration in offshore blocks stalled in the early 2000s for various reasons, including unattractive production-sharing contracts. To combat the gas crisis, there is an urgent need to accelerate gas exploration and production. The Government of Bangladesh established the gas development fund in 2012 to support upstream activities and undertake large-scale exploration in onshore and offshore areas. BAPEX has initiated well appraisals, such as three-dimensional seismic surveys and development of discovered and producing gas fields, to prove additional gas reserves. Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) has assigned offshore exploration rights to and signed new production-sharing contracts with international oil companies to complement BAPEX's onshore exploration program. In the meantime, Petrobangla is pursuing a program to increase recovery from existing gas fields by installing wellhead gas compressors. Inadequate gas transmission infrastructure is another hurdle in Bangladesh's gas sector. The gas transmission infrastructure coverage is not able to serve the country's key market areas, as most gas supply points are in the northeast and central regions, while delivery points are in the central, south, and west. Ongoing Asian Development Bank loans have greatly enhanced the transmission capability. However, the Chittagong area is still suffering from a gas supply shortfall due to full capacity attainment of the existing 175 km, 24-in Bakhrabad Chittagong gas transmission pipeline. To enhance the throughput capabilities and facilitate transmission of additional gas, the gas transmission network must be expanded to accommodate the upcoming diversified gas supply sources from imports and offshore discoveries into the national gas network. IMPACT Energy sector contribution to sustainable economic growth increased (Bangladesh Seventh Five-Year Plan OUTCOME Efficiency in gas production improved and gas transmission pipeline capacity expanded. CONSULTING SERVICES The recruitment of consultants will follow ADB''s Guidelines on the Use of Consultants (2013, as amended from time to time). PROCUREMENT Project-related procurement will be carried out following ADB''s Procurement Guidelines (2015, as amended from time to time). As the project will be jointly financed by ADB and AIIB, universal procurement will be applied to works, goods, and consulting services to be financed under the project.
Investment Description
  • Asian Development Bank (ADB)
Loan 3461-BAN: Natural Gas Infrastructure and Efficiency Improvement Project Ordinary capital resources US$ 100.00 million Loan 3462-BAN: Natural Gas Infrastructure and Efficiency Improvement Project Concessional ordinary capital resources / Asian Development Fund US$ 67.00 million Loan 8318-BAN: Natural Gas Infrastructure and Efficiency Improvement Project Asian Infrastructure Investment Bank US$ 60.00 million
Contact Information
ACCOUNTABILITY MECHANISM OF ADB The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main CONTACTS Responsible ADB Officer Zhang, Hongwei Responsible ADB Department South Asia Department Responsible ADB Division Energy Division, SARD Executing Agencies Bangladesh Gas Fields Company Ltd. Birashar, Brahmanbaria Brahmanbaria-3400 Bangladesh Gas Transmission Company Ltd. F-18/A, Sher-E-Bangla Nagar Administrative Area, Agargaon Dhaka, 1207