The New Nation - Internet Edition

Staff Reporter

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, Special Assistant to the Chief Adviser responsible for the Ministry of Power, Energy and Mineral Resources, yesterday.

Titas, located in Brahmanbaria, produces around 450 million cubic feet (mcf) of gas per day and is operated by the country's oil and gas agency Petrobangla. A well of the field has been closed for several months since a blowout in December 2006, said the officials.

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," said Tamim.

The fund would be required for the maintenance of all 10 wells of the field, he said.

"The ADB 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," said an official of the ADB.

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, said officials.

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, they added.