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Preparatory Survey on the Natural Gas Efficiency Project in the People's Republic of Bangladesh FINAL REPORT

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Preparatory Survey on the Natural Gas Efficiency Project in the People's Republic of Bangladesh FINAL REPORT Ministry of Power, Energy and Mineral Resources The People’s Republic of Bangladesh Preparatory Survey on The Natural Gas Efficiency Project in The People’s Republic of Bangladesh FINAL REPORT March 2014 JAPAN INTERNATIONAL COOPERATION AGENCY ORIENTAL CONSULTANTS CO., LTD. IL JR 14-069 Ministry of Power, Energy and Mineral Resources The People’s Republic of Bangladesh Preparatory Survey on The Natural Gas Efficiency Project in The People’s Republic of Bangladesh FINAL REPORT March 2014 JAPAN INTERNATIONAL COOPERATION AGENCY ORIENTAL CONSULTANTS CO., LTD. Survey Area Table of Contents Survey Area List of Figures List of Tables Abbreviations Executive Summary Page Chapter 1 Introduction ........................................................................................................... 1-1 1.1 Background of the Survey ........................................................................................... 1-1 1.2 Objective of the Survey ............................................................................................... 1-2 1.3 Objective of the Project ............................................................................................... 1-2 1.4 Survey Team ................................................................................................................ 1-3 1.5 Survey Schedule........................................................................................................... 1-4 1.5.1 Entire Schedule ...................................................................................................... 1-4 1.5.2 1st, 2nd and 3rd Survey in Bangladesh ..................................................................... 1-5 Chapter 2 Overview of the Natural Gas Sector ...................................................................... 2-1 2.1 Position of Natural Gas in Energy Sector .................................................................... 2-1 2.2 Demand and Production ............................................................................................... 2-3 2.3 Price of Natural Gas ..................................................................................................... 2-4 2.4 Challenges of Natural Gas Sector ................................................................................ 2-5 2.4.1 Increase of Natural Gas Supply ............................................................................. 2-5 2.4.2 Efficient Use of Gas ............................................................................................... 2-6 2.4.3 Rise of Natural Gas Price ....................................................................................... 2-6 2.5 Initiative of Other Development Partners .................................................................... 2-7 2.6 Activities of International Oil Companies ................................................................. 2-10 2.7 Environmental and Social Consideration for Natural Gas Sector .............................. 2-16 2.8 Bidding and Contract for the Project ......................................................................... 2-18 2.9 Support to the preparation of DPP ............................................................................. 2-19 2.10 Safety Control ............................................................................................................ 2-20 2.11 Organization and Activities for Anti - Corruption ..................................................... 2-20 Chapter 3 Overview of Executing Agencies ........................................................................... 3-1 3.1 Executing Agencies ...................................................................................................... 3-1 3.1.1 BGFCL................................................................................................................... 3-1 3.1.2 GTCL ..................................................................................................................... 3-4 - i - 3.1.3 TGTDCL ................................................................................................................ 3-7 3.1.4 KGDCL ................................................................................................................ 3-11 Chapter 4 Overview of the Requested Project Components .................................................... 4-1 4.1 Development of Gas Production Fields ....................................................................... 4-1 4.1.1 Drilling New Well(s) in Bakhrabad Gas Field (BGFCL) ...................................... 4-1 4.1.2 Appraisal of Existing Production Wells for the Installation of Compressors at Bakhrabad, Narsingdi and Titas Gas Fields ........................................................... 4-2 4.1.3 Installation of the Wellhead Gas Compressors at Bakhrabad Gas Field ................ 4-9 4.1.4 Installation of the Wellhead Gas Compressors at Narsingdi Gas Field ............... 4-14 4.1.5 Installation of the Wellhead Gas Compressors at Titas Gas Field, Location A .... 4-17 4.1.6 Installation of the Wellhead Gas Compressors at Titas Gas Field, Location C .... 4-20 4.1.7 Installation of the Wellhead Gas Compressors at Titas Gas Field, Location E .... 4-23 4.1.8 Installation of the Wellhead Gas Compressors at Titas Gas Field, Location-G ... 4-26 4.2 Construction of Gas Transmission Pipeline (GTCL) ................................................. 4-28 4.2.1 Dhanua – Elenga Pipeline: 30 inch x 52 km ........................................................ 4-30 4.2.2 West Bank of Jamuna Bridge – Nalka Pipeline: 30 inch x 14 km ....................... 4-36 4.2.3 Jalalabad – Bibiyana Pipeline: 24 inch x 54 km .................................................. 4-38 4.2.4 Bakhrabad – Chittagong Pipeline: 30 inch x 201 km .......................................... 4-41 4.2.5 Langalband – Maowa Pipeline: 30 inch x 40 km ................................................. 4-42 4.3 Construction of Distribution Pipelines ....................................................................... 4-43 4.3.1 River Crossing by HDD at 12 sites (TGTDCL) .................................................. 4-43 4.3.2 Rehabilitation of Critical Existing Distribution Pipelines (TGTDCL) ..................... 4-45 4.3.3 Construction of Distribution Pipeline: 24 inch x 5.5 km (KGDCL) ........................ 4-48 4.4 Installation of Pre-Paid Gas Meters ........................................................................... 4-52 4.4.1 Installation of Pre-Paid Gas Meters in Dhaka (TGTDCL) .................................. 4-52 4.4.2 Installation of Pre-Paid Gas Meters in Chittagong (KGDCL) ............................. 4-59 Chapter 5 Selection of the Project Components ..................................................................... 5-1 5.1 Criteria for the Selection of the Project Components .................................................. 5-1 5.2 Recommendations for the Project Component Selection ............................................. 5-1 5.3 Project Cost .................................................................................................................. 5-1 Chapter 6 Details of Selected Project Components ................................................................ 6-1 6.1 Installation of Wellhead Gas Compressors in Narsingdi and Titas Gas Fields ............ 6-1 6.1.1 Scope of the Project ............................................................................................... 6-1 6.1.2 Status of Related Projects ...................................................................................... 6-4 6.1.3 Preliminary Design of the Project .......................................................................... 6-9 - ii - 6.1.4 Construction Plan ................................................................................................. 6-44 6.1.5 Package for the Procurement of the Project ......................................................... 6-47 6.1.6 Consulting Services ............................................................................................. 6-47 6.1.7 Organization for the Project Implementation and O&M ..................................... 6-50 6.1.8 Project Implementation Schedule ........................................................................ 6-54 6.1.9 Project Cost .......................................................................................................... 6-54 6.1.10 Economic and Financial Analyses ....................................................................... 6-54 6.1.11 Operation and Effect Indicators ........................................................................... 6-54 6.1.12 Environmental and Social Considerations ........................................................... 6-56 6.1.13 Associated Risks under the Project ...................................................................... 6-65 6.2 Construction of Gas Transmission Pipeline Dhanua - Elenga and West Bank of Jamuna Bridge – Nalka .............................................................................................. 6-70 6.2.1 Scope of the Project ............................................................................................. 6-70 6.2.2 Status of Related Projects .................................................................................... 6-74 6.2.3 Preliminary Design of the Project ........................................................................ 6-76 6.2.4 Construction Plan ................................................................................................
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