Gazprom Enters Bangladeshi Gas Sector

Gazprom Enters Bangladeshi Gas Sector

Friday, April 22, 2011
Asia Pulse Pte Ltd

Gazprom will drill five wells at different existing gas fields in Bangladesh in October and will soon help train Petrobangla employees, said a Bangladeshi official this week.

The decision to go ahead with the project was announced by Bangladesh Prime Minister's Advisor Dr. Tawfiq-e-Elahi Chowdhury following a meeting at the Energy Ministry Wednesday with a high power Russian delegation led by Gazprom vice president Valery Gulev.

The 11 member Russian energy delegation is now in the city on a three-day visit. During the meeting top officials of energy ministry, Petrobangla and other organizations in power and energy sector were present.

Dr. Elahi, who led Bangladesh side in the negotiations, told reporters that the drilling will start in October and will play a vital role in mitigating the nagging gas crisis.

Valery Gulev said they have adequate experts to help improving Bangladesh energy sector.

"We've technical expertise to help Bangladesh. It will take one month to one and half months to bring our necessary equipment in Bangladesh. We're hopeful of starting our works by September or October," he told reporters.

However, he said that the issue of financial involvement is yet to be settled.

"But, this will be settled through negotiation," he added.

According to the PM's Advisor, Gazprom will supply and install two gas compressors in the country to boost the pressure in gas pipelines. It will need 12 to 18 months to install the compressors.

He said the Gazprom has offered Bangladesh to prepare a strategic master plan for the gas sector.

In addittion to this, he said, Gazprom will help Petrobangla train its employees under a bilateral cooperation agreement on capacity building.

Gazprom will set up an office in Dhaka to strengthen its cooperative role for Bangladesh energy sector.

Sources said a memorandum of understanding (MOU) has been ready for signing between the two sides and it will be inked at the end of the week.

The delegation is scheduled to meet Prime Minister Sheikh Hasina and other dignitaries during its visit.

Energy Ministry officials said the Russian delegations visit is result of the Prime Minister's visit last year in Moscow.

Last month, Foreign Minister Dipu Moni also visited Moscow.