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Foreword Summary

Transmission System

Demand Supply Scenario

Gas Production

Drilling Program

Evacuation Needs

Simulation ResultsEvacuation Options

Evaluation of Options

Sector Capabilit ies

Major Challenges

Conclusions

Contents___________________

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Foreword________________ PB and its companies are implementing a

number of projects to improve current gas

supply situation at the earliest. Among IOCs,Chevron plans to increase BY, JB & MB fieldproductions over the next 3 years.

Chevrons plan was reviewed by EMRD on23 June 2010. Findings of a simulation exercisedone by PB were also placed in the reviewmeeting.

A comprehensive gas evacuation plan has nowbeen drawn as directed. Results of the analysiswith particular focus on evacuation ofChevrons additional gas are now presented forreview and decision by EMRD.

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A network simulation exercise was done under thesupervision of PB using GTCLs Pi p el i n e St u d i o Software.

Planned gas production from various fields and

demand projection (mmscfd) up to Y 2015 wereused as inputs in the exercise:

New Pipelines required for full evacuation of

additional gas were identified through carefulexamination/evaluation of options.

Pipelines include long distance new trunk linesand also loop-lines required for de-bottlenecking of

existing system, targeted for completion withinnext 2-4 years.

Summary___________________

37823412340228222487Production

37463591334130432520Demand

20152014201320122011

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BKB

Hub

CGS

Demra

Siddhir-

ganj

TFA

TFA

Feni GF

BKB

BFA

BFA

BFA

20

30

LEGEND

Firm lines: Existing

Dotted lines: Under Implementation/Proposed

KTL

JB

BY

BB

FNG

24

24

14 20

1230

JFA

RSD

HBJ

2014

30 24

30 24

24

JFA

MBMuchai

HBJ Hub

TGF

Bangura GF

24

24

30

30 30

AshuganjMS

APS/AFC

DhanuaMS

WestZone

TFA TFATFA/

GPS/

UFFL/

PUFF

24

3012

3030

30

24

1212

Elenga

MS

TFA/

RPCLTFA/

JFCL

MonohordiMS

24

Meghna

Salda

Gas Transmission System____

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DemandSupply Scenario____

Present demand-supply scenario is imbalanced by nearly a 20% gap based on daytotal demand. At peak hourly demand rates, gas off-take exceeds throughput by a

higher margin to the tune of 30%.

Gas demand projection (mmscfd) of six PB marketing companies upto Y 2015 is asfollows:

The production augmentation plan of Petrobangla including that of IOCs, Chevron in

particular, is aimed at minimizing the demand-supply imbalance at the fastestpossible time

4162398937123382280119812363Gross Demand

37463591334130432520Demand at 90% LF

16716010468777BAPEX/SGCL

2021991971361027691PGCL

305303301308181131131JGTDCL

530523512502485250380KGDCL

120110105100905472BGSL

2838269424932268193614701689TGTDCL

20152014201320122011

Future DemandPresent

Availability

Present

Demand

Company

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Gas Production_____________ Total gas production in the country is around 2000 mmscfd.

PB companies produce 947 mmscfd (47% of total). 393 mmscfd will badded by Y 2012 and 180 mmscfd by Y 2015.

Chevron fields produce 900 mmscfd (45% of total). 180 mmscfd will beadded by Y 2011, 380 mmscfd by Y 2012 and 380 mmscfd by Y 2013.

Remaining 160 mmscfd (8% of total) is produced by two other IOCs:Tullow (120 mmscfd) and Cairn (40 mmscfd). Cairn will add 30 mmscfdfrom Sangu (south) by Dec 2010.

Total additional PB + Chevron + Cairn production will be:

210 mmscfd by Y 2011

+ 773 mmscfd by Y 2012

+ 380 mmscfd by Y 2013

+ 180 mmscfd by Y 2015.

1543 mmscfd

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152013501340134011851055947977Sub-total :

Kapasia/

Mubarakpur

60606060601500

Sundalpur/

Srikail/

15151515151500Semutang

15151515151500Meghna

888888815Shahbazpur

5656565636363634Bakhrabad

383838383823811Salda

3333333333333335Narsingdi

25251515151572Sylhet

1616161616161618Beanibazar

12797979797979797Kailashtila

6565656565452532Fenchuganj

12484848449494953Rashidpur

260260260260260260260260Habiganj

678578578578478428408420Titas

Dec-15Dec-14Dec-13Dec-12Dec-11Dec-10Existing

Production

Existing

Capacity

PRODUCTION AUGMENTATION PLAN (mmscfd) - Petrobangla Fields

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42823912390233222487217720392020Total :

5005005005000000

LNG IMPORT (Equivalent mmscfd)

22622062206214821302112210921043Sub-total:

00000000Block-7

2000000000Offshore bidding 2008

30303030303000Sangu (South)

4040404040404035Sangu

22222223Feni

120120120120120120120100Bangura

108010801080900720720720600Bibiyana

360360360160160606075Moulvibazar

430430430230230150150230Jalalabad

Dec-15Dec-14Dec-13Dec-12Dec-11Dec-10ExistingProduction

ExistingCapacity

PRODUCTION AUGMENTATION PLAN (mmscfd) - IOC FIELDS

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13931223122312231068938893919Sub-total :

1515151515000Mubarakpur

1515151515000Kapasia

1515151515000Srikail

15151515151500Sundalpur

15151515151500Meghna

5656565636363634Bakhrabad

383838383823811Salda

3333333333333335Narsingdi

10474747474747474Kailashtila

6565656565452532Fenchuganj

12484848449494953Rashidpur

220220220220220220260260Habiganj

678578578578478428408420Titas

Dec-15Dec-14Dec-13Dec-12Dec-11Dec-10

Grid Intake VolumesExisting

Production

Existing

Capacity

PROJECTED GRID INTAKE VOLUMES AGAINST AUGMENTED PRODUCTION (mmscfd) - By Petrobangla

Fields

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39653595359532152330202019451927Total :

5005005005000000

LNG Import (Equivalent to mmscfd)

20721872187214921262108210521008Sub-total:

00000000Block-7

2000000000Offshore bidding 2008

30303030303000Sangu (South)

22222223Feni

120120120120120120120100Bangura930930930750720720720600Bibiyana

360360360360160606075Moulvibazar

430430430230230150150230Jalalabad

Dec-15Dec-14Dec-13Dec-12Dec-11Dec-10

Grid Intake VolumesExistingProduction

ExistingCapacity

PROJECTED GRID INTAKE VOLUMES AGAINST AUGMENTED PRODUCTION (mmscfd) - By IOC Fields

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Drilling Program ___________

Short Term (Up to Dec. 2010)

- Work over : 6 wells

- Appraisal : -

- Exploration : 1 well

Mid Term ( Up to Dec. 2013)

- Work over : 1 well- Appraisal : 10 wells

- Exploration : 3 wells

Long Term ( Up to Dec. 2015)

- Appraisal : 9 wells

- Development : -

- Exploration : -

Short Term (Up to Dec. 2010)

- Work over : -

- Appraisal : -

- Exploration : 1 well

Mid Term ( Up to Dec. 2013)

- Work over : -- Appraisal : -

- Development :19 wells

Long Term ( Up to Dec. 2015)

- Appraisal : -

- Development : 3 wells

- Exploration : -

PB Chevron

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Evacuation Needs________

For increased Production - PB

Among PB fields, the entire increased production of TGF (270 mmscfd) can/would be

evacuated without flowing through Compressor Stations. To this end 30 inch dia. 61 km

loop line project has been taken up for completion by Y 2013.

Increased production of other three PB fields KGF, FGF & RGF (145 mmscfd) over the

existing production of 150 mmscfd (total 295 mmscfd) will be needed to be evacuated

through Muchai & Ashuganj Compressor Stations by Y 2012.

For increased Product ion Chevron

JBF :

Present production of 150 mmscfd is being evacuated by existing pipelines leaving

behind a stranded production of 80 mmscfd.

Total 230 mmscfd existing production capacity can/would be evacuated once MuchaiCompressor Station is commissioned by Y 2011 followed by Ashuganj Compressor

Station to be commissioned by Y 2012.

Additional 200 mmscfd in Y 2013 would require a new evacuation route because this

volume can not be passed through existing pipelines and Compressor Stations to be

installed.

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MBF: Present production of 60 mmscfd is being evacuated by existing pipelines.

Total additional production of 300 mmscfd by Y 2012 together with existing 60 mmscfd

(total 360 mmscfd) can/would be evacuated once Muchai Compressor Station is

commissioned by Y 2011 followed by Ashuganj Compressor Station to be commissioned by

Y 2012.

BYF

Present production of 720 mmscfd is being evacuated by existing pipelines.

150 mmscfd out of total additional production of 360 mmscfd by Y 2013 would be required

by and supplied to the two Bibiyana IPPs targeted for completion by Y 2013 leaving 210

mmscfd for evacuation to the national gas grid

Total additional production of 210 mmscfd by Y 2013 available for national gas grid together

with existing 720 mmscfd (total 930 mmscfd) can not all be evacuated by the existing

pipelines and Compressor Stations.

Taking into account 1160 mmscfd (max) capacity of Muchai Compressor Station and

considering the production of above mentioned PB & Chevron fields which must be routed

through the Muchai Compressor station, the calculated volume of BYF that can be

passed through this compressor station is only 275 mmscfd.

Therefore, the remainder 930-275 = 655 mmscfd of BYF production must have a altogethernew evacuation route to be established at the soonest.

Evacuation Needs (contd.)____

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Evacuation of Chevrons planned additional 300 mmscfd from Moulvibazar GF :

Construction of 22 km parallel pipeline from Moulvibazar GF to Muchai Manifold

Station.

2.

Evacuation of Chevrons planned additional 560 mmscfd from Jalalabad GF

and Bibiyana GF :

Option-A : JBF-BYF-Muchai-Ashuganj-Monohordi through Compressor

Stations at Muchai & Ashuganj(210 km)

Option-B : JBF-BYF-Dhanua bypassing Compressor Stations (190 km)

Option-C : JBF-BYF-Muchai-Ashuganj-Monohordi Dhanua- Elenga

Bypassing Compressor Stations at Muchai & Ashuganj (300 km)

1.

Description of PipelineSl. No

Simulation Results__________

Pipelines required to evacuate additional production from upstream of Muchai

Compressor Station

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Dhanua to Elenga : This section of pipeline (30 inch dia. 52 km) is part of

approved project namely Monohordi-Dhanua-Elenga-East bank of Jamuna Bridge

project. Construction of Monohordi-Dhanua and Elenga-East Bank section is

ongoing under ADB finance. Financing for Dhanua-Elenga section need to bearranged.

2.

Khatihata to BhadugarB.Baria (TGF L-A): Construction 24 inch dia. 12 km high

pressure (1135 psig) pipeline to evacuate 200 mmscfd additional gas productionfrom Titas Gas Fields.

1.

Bangabandhu Bridge West End to Nalka: This section of pipeline (30 inch dia.

15 km) is part of approved project namely East Bank of Jamuna Bridge to Nalka,

Hatikamrul to Ishwardi to Bheramara project. Construction of Hatikamrul to

Ishwardi to Bheramara section is ongoing under ADB finance. Financing for

Bangabandhu Bridge West End to Nalka section need to be arranged.

3.


Pipelines required for de-bottlenecking of existing transmission system.

Simulation Results (Contd.)_______

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Mubarakpur GF to Baghabari: Construction of 12 inch ND X 30 km pipeline from Mubarakpur gas field to

Baghabari CGS is needed for evacuation of gas from Mubarakpur gas field.4.

Srikail GF to AB Pipeline: Construction of 8 inch ND X 3 km pipeline from Srikail gas field to AB pipeline MLV-

2 (Karoibari) intake point is needed for evacuation of gas from Srikail gas field.3.

Description of PipelineSl.

No

Sundalpur GF to Feni : Construction of 12 inch ND X 30 km pipeline from Sundalpur gas field to Bakhrabad-

Chittagong pipeline intake point at Feni is needed for evacuation of gas from Sundalpur gas field.2.

Kapasia GF to Amraid: Construction of 12 inch ND X 4 km pipeline from Kapasia gas field to Monohordi-

Dhahua pipeline intake point at Amraid is needed for evacuation of gas from Kapasia gas field.

1.

Simulation Results (Contd.)_______

Pipelines required for hook up of new gas fields.

Pipeline required for evacuation of LNG.


Maheshkhali to Rangadia: Construction of 30 inch Dia X 90 km pipeline from Maheshkhali LNG receiving

station to Rangadia hook-up point of Chittagong Ring Main for evacuation of LNG.

1.

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Evacuation Options_____________

Evacuation Route : Option-A : JB-BY-Muchai-Ashuganj-Monohordi (210 km)

Flow through Compressor Stations, required Comp cap (Muchai 2010, Ashuganj-2350 mmscfd)

Evacuation Route : Option-B : JB-BY-Dhanua (190 km)

Flow through Compressor Stations, required Comp cap (Muchai 1160, Ashuganj-1500 mmscfd)

Evacuation Route: Option-C : JB-BY-Muchai-Ashuganj-Elenga (300 km)

Flow not through Compressor Stations, required Comp cap (Muchai 1160, Ashuganj-1500

mmscfd)

Simulation exercise was carried out for evacuation of 790 mmscfd out of a total 940 mmscfd

additional gas production by Chevron from its three fields by Y 2013 considering the balance 150

mmscfd to remain dedicated for the two Bibiyana IPPs.

Taking into account Muchai Compressor Station designed capacity of 1160 mmscfd and that of

Ashuganj Compressor Station 1500 mmscfd, a quantity of 850 mmscfd gas will be needed to be

evacuated bypassing the Muchai & Ashuganj Compressor Stations.

To address the above evacuation need the simulation exercise presents three different options

complying with steady state convergence which are as follows and pictorially depicted in the next

three linked slides:

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Does not converge due to pressure

mismatch

Converges with a 34 inch dia pipelineConverges with a 34 inch dia pipelineSimulation

convergence

Option-COption-BOption-ACriteria

JBF-BYF-Muchai-Ashuganj-Elenga

bypassing compressors

JBF-BYF-DhanuaJBF-BYF-Muchai-Ashuganj-Monohordi

through compressors

Route

BDT 3500-4000 CroresBDT 2300-2500 CroresBDT 3200-3500 CroresEstimated Cost

Will be limited to existing gas fields

only

Proximity to future gas source locations in

Sunamganj & Netrakona Districts.

Will be limited to existing gas fields onlyConnectivity

Same evacuation corridor as the

existing one requiring additional land

acquisition

Alternative evacuation corridor will be

developed under this option offering

increased operational flexibility & overall

system reliability

Same evacuation corridor as the existing

one requiring additional land acquisition

which presents difficulties at many

locations due to infrastructure development

Corridor

Bypasses Muchai & Ashuganj

Compressor Loop, but this option

does not converge in the simulation

Route is different from Muchai & Ashuganj

Compressor Loop enhance no additional

compression capacity needed.

Passes through Muchai & Ashuganj

Compressor Loop and Muchai & Ashuganj

Compressor capacities need to be almost

doubled.

Compression

Developed terrain, Hilly area 2 km,

Tea & Rubber Garden 10 km.

Remaining 288 km is normal cross-country land. Involves major river

crossings (Meghna & 9 others)

30 km out 190 km is Haor area, remaining

160 km is normal cross-country land. About

40 km falls under forest area. Haor arearemains dry for nearly 5 months with paddy

cultivation. Water table is learnt to remain

20 feet below land surface and cultivation

requires irrigations

Developed terrain, Hilly area 2 km, Tea &

Rubber Garden 10 km. Remaining 198

km is normal cross-country land. Involvesmajor river crossings (Meghna & 6 others)

Terrain Condition

300 km190 km210 kmLength

Evaluation of Options________

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GTCL operates 9 major high-pressure transmissionpipeline systems (20-30 inches Dia).

Out of these pipelines initial 5 were built by expatriateEPC contractors.

Subsequent 4 pipelines were designed & materialsprocured by GTCLs personnel and construction doneby local contractors under GTCL supervision.

Currently 7 pipeline (12-30 inches Dia) projects underimplementation out of which 3 are near completion.

Sector Capabilities______________

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GTCL now has proven capabilities for Front End Engineering Design and

Detailed Engineering Design for high pressure transmission pipelines

Presently 14 nos. of local contractors of Category-1.4 have the proven

capabilities for constructing high pressure transmission pipelines pipelines

upto 30 inches Dia

Regulating & Metering Station FEED is done by GTCL but constructed by

expatriate EPC contractors. Recently the EPCs use local contractors for in-

situ fabrication, erection & installation of the stations

HDD River Crossing work are needed to be done by expatriate EPCs.

Sector Capabilities (Contd.)__________

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Land Acquisition/Requisition for Right of Way (ROW) involves huge

complication and unexpected delays.

Long Lead Times are needed for Material Procurement typically

divided in 7-10 bid packages often requiring re-biddings.

Pipeline Construction activity is season-bound. Window of

opportunity typically lasts for maximum six months of the year.

Financing and project approval is a very protracted process causing

delay in project implementation.

Environmental study and clearance is also a circuitous and long

drawn process. Due to a number of large size transmission pipeline projects being

implemented, GTCL has human resource limitations as well.

Major Challenges_____________

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Conclusions_______________ Petrobangla observes Option-B (JB-BY-Dhanua) pipeline as the preferred solution

from operational point of view.

Considered from route/terrain characteristics point of view, about 30 km length (15%

of total) presents some challenge which may be overcome by technological

alternatives for construction to be decided in due course.

For expeditious implementation the pipeline is recommended for construction under

a turn-key contract for which necessary draft bid documents are available in GTCL.

Land acquisition for the ROW need to be started from next dry season (beginning

Nov 2010). The construction of the pipeline can commence from Nov 2011

provided the land acquisition is completed by that time.

The financing of the project to be decided by the GoB expeditiously.

presentation 25-07-10

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