Md. Mizanur Rahman Master of Engineering in Petroleum

AN OVERVIEW OF NATURAL GAS CONDENSATE SCENERIO IN BANGLADESH

MD. MIZANUR RAHMAN

MASTER OF ENGINEERING IN PETROLEUM ENGINEERING

DEPARTMENT OF PETROLEUM & MINERAL RESOURCES ENGINEERING BANGLADESH UNIVERSITY OF ENGINEERING & TECHNOLOGY DHAKA-1000, BANGLADESH

OCTOBER 2013

AN OVERVIEW OF NATURAL GAS CONDENSATE SCENERIO IN BANGLADESH

A Project Submitted to the Department of Petroleum and Mineral Resources Engineering in Partial Fulfilment of the Requirements for the Degree Of MASTER OF ENGINEERING IN PETROLEUM ENGINEERING

MD. MIZANUR RAHMAN

ROLL NO.: 1007132013

DEPARTMENT OF PETROLEUM & MINERAL RESOURCES ENGINEERING BANGLADESH UNIVERSITY OF ENGINEERING & TECHNOLOGY DHAKA-1000, BANGLADESH

OCTOBER 2013 RECOMMENDATION OF BOARD OF EXAMINERS

The project entitled as “An Overview of Natural Gas Condensate Scenario in Bangladesh” submitted by Md. Mizanur Rahman, Roll No: 1007132013(P), Session: October 2007, has been accepted as satisfactory in partial fulfillment of the requirements for the degree of Master of Engineering in Petroleum Engineering on October 30, 2013.

Chairman (Supervisor) : ______Afifa Tabassum Tinni Assistant Professor Department of Petroleum & Mineral Resources Engineering BUET, Dhaka-1000

Member : ______Dr. Mohammad Tamim Professor and Head Department of Petroleum & Mineral Resources Engineering BUET, Dhaka-1000

Member : ______Dr. Mohammad Mahbubur Rahman Associate Professor Department of Petroleum & Mineral Resources Engineering BUET, Dhaka-1000

Date: October 30, 2013

Declaration

It is hereby declared that this project or any part of it has not been submitted elsewhere for the award of any degree or diploma.

Md. Mizanur Rahman

ABSTRACT

Bangladesh Oil Gas and Minerals Corporation short named Petrobangla operates oil and gas exploration, development, transmission, distribution and conversion together with development and marketing of minerals in Bangladesh. Bangladesh gas sector started its journey in the 60s, but its rapid expansion and integration started to accelerate in the early 70s spurred by the rising of the oil prices. Till now, 24 gas fields have discovered. Total recoverable proven and probable gas reserve is about 26.84 TCF and recoverable reserve is 20.70 TCF. Up to June 2013 about

11.2 TCF gas has been produced, leaving only 9.5 TCF recoverable proved gas. On the other hand, up to June 2013 about 30.27 MMBBL condensate has been produced so far.

Eastern Refinery Limited (ERL) plays a vital role in supplying around 40% of the country’s current petroleum products demand. ERL processes crude oil imported by BPC and delivers the finished petroleum products to the other subsidiaries of BPC for marketing and distribution. ERL also processes natural gas condensate as crude mix. Besides ERL, Petrobangla companies like

SGFL and BGFCL are fractionating condensate into different products like motor spirit (MS), kerosene, diesel and octane. And also some private entrepreneurs are fractionating condensate into different products like MS, kerosene, diesel, SBPS and MTT. So, these fractionation plants producing different products and marketed by Bangladesh Petroleum Corporation (BPC) are playing a big role reducing import to meet the national demand of Bangladesh.

SGFL installed a fractionation plant to fractionate condensate into MS, Kerosene at Haripur in

1960. At present there are twelve fractionation plants are in production a total capacity of 11,000

BBL/Day in Bangladesh. These fractionation plants both by government and private organization are contributing in the national economy reducing imports of finished petroleum products.

ACKNOWLEDGEMENT

I would like to thank Afifa Tabassum Tinni, Assistant Professor, Department of Petroleum and

Mineral Resources Engineering, For assigning such an important and practical topic “An

Overview of Natural Gas Condensate Scenario in Bangladesh” and for supervision and proper guidance throughout this study.

I am grateful to Dr. Mohammad Tamim, Professor and Head, Department of Petroleum and

Mineral Resources Engineering, for his distinguished lectures and demonstration during class period which helped me a lot in completing this work.

I would like to thank Dr. Mohammad Mahbubur Rahman, Associate Professor, Department of

Petroleum and Mineral Resources Engineering, for his thoughtful guidance and valuable lectures during classes and throughout this study.

I would like to thank Md. Anisul Haque Sarker, General Manager, Development & Production

Division, Petrobangla, Engr. Jibon Santi Sarker, Manager, Drilling Project, SGFL, Engr. Md.

Kamruzzaman, Assistant Engineer, ERL and Engr. Touhid Ahmed Siddique, Assistant Manager,

RCFP, SGFL for co-operating and contributing a lot to complete this work.

I also express my gratitude to the staff of Department of Petroleum and Mineral Resources

Engineering for their cooperation.

Table of Contents

i Acknowledgement ------1 Chapter 1 Introduction ------1 1.1 Background------2 1.2 Objectives and Methodology------3 Chapter 2 Condensate Handling, Transportation and Storage------3 2.1 Condensate Handling------4 2.2 Condensate Transportation------6 2.3 Condensate Storage------8 Chapter 3 Natural Gas Condensate and its Properties------12 Chapter 4 Condensate Recovery and Fractionation Process Description------12 4.1 Condensate Recovery Process Description------19 4.2 Condensate Fractionation Process Description------22 Chapter 5 Condensate Chain in Bangladesh------22 5.1 Condensate Production------26 5.2 Condensate Processing------29 5.3 Uses of Petroleum Products------31 Chapter 6 Condensate Production and Fractionation Data ------42 Conclusions and Recommendations------45 References------46 Appendix------

iii

Chapter 1

Introduction

Natural gas condensate is a low density mixture of hydrocarbon liquids that is present as gaseous state at reservoir condition, but condenses out at surface condition. Condensate is composed mostly of saturated hydrocarbons in the light gasoline range (butane, pentane and hexane) and generally has API gravity higher than 55. It is a valuable product which is fractionated to produce LPG, motor spirit, diesel etc [1-5].

During the early days of natural gas production in Bangladesh, amount of condensate was small.

With current production rate at about 7,000 barrels per day, the scenario has changed significantly.

The major condensate producing fields of Bangladesh are Kailashtila, Rashidpur, Beanibazar,

Jalalabad, Moulavibazar, and Bibiyana [6-21]. Until recently, all produced condensate was sent to Eastern Refinery Limited (ERL), the sole state owned refinery [22]. However, over the recent years a number of public and private enterprises got involved in fractionation. Due to the value addition opportunities, some of the gas field operators are considering measures to maximize liquid recovery [23]. Condensate is now an important issue with both technical and economic implications. It is therefore very important to gain a good understanding of the condensate value chain.

The proposed project aims to make a systematic study of the condensate value chain. This will be helpful for all parties concerned, including the policy makers.

1.1 Objectives:

The objectives of the study are to:

1. Create a database of condensate production and condensate properties

2. Give an overview of condensate handling, transportation and storage system in

Bangladesh.

3. Give an overview of condensate fractionation business in Bangladesh, along with the

statistics of end products.

4. Identify the trends and make suggestions for future developments.

1.2 Methodology

The following methods will be adopted to achieve the above objectives:

1. Collection of condensate production and property data

2. Collection of data and information regarding condensate handling, transportation and

storage

3. Collection of data and information related to the refinery/fractionation business in

Bangladesh

4. Compilation and analysis of the data and information

5. Identify trends, and scope of improvements, where necessary.

6. Suggest measures for coping up with the trends, such as efficient handling of increasing

production, etc.

Chapter 2

Natural Gas Condensate Properties

Definition: Natural Gas Condensate

Condensate is colorless or light yellow liquid hydrocarbons which come out as associated liquids with natural gas during its production. Most condensates are composed of saturated hydrocarbons in the light gasoline range (butane, pentane and hexane). [2]

Natural-gas condensate is a low-density mixture of hydrocarbon liquids that are present as gaseous components in the raw natural gas produced from many natural gas fields. It condenses out of the reservoir gas if the temperature is reduced to below the hydrocarbon dew point temperature of the reservoir gas. [4]

Condensate is the C5+ fraction and, as such, is the heaviest fraction of a natural gas mixture. It is also referred to as simply condensate, or gas condensate, or sometimes natural gasoline because it contains hydrocarbons within the gasoline boiling range.

Drip gas is another name for natural-gas condensate, a naturally occurring form of gasoline found near many oil and natural gas wells, in natural gas pipelines, and as a byproduct of natural gas extraction. It is also known as "condensate", "natural gasoline", "casing head gas", "raw gas",

"white gas" and "liquid gold" . [4]

3 Fig. 2.1: PT Phase diagram for separator reservoir fluid

Figure-2.1 shows the PT phase diagram for a reservoir fluid, together with a production path from the pressure and temperature existing in the reservoir to that existing in that separator in the surface. The fluid is under saturated liquid at reservoir conditions. On production the fluid pressure drops fast with some temperature reduction occurring as the fluid travels up the borehole. [3]

Hydrocarbon reservoirs are usually classified into the following main types:

1. Dry Gas

2. Wet Gas

3. Gas Condensate

4. Volatile Oil

5. Black Oil

Fig. 2.2: P-T Curves of different types of Reservoir

Figure-2.2 shows the phase behavior of each types of reservoir. [3]

Composition of natural-gas condensate

There are many wet gas fields worldwide and each has its own unique gas condensate composition. However, in general, gas condensate has a specific gravity ranging from 0.5 to 0.8 and may contain: [5]

• Hydrogen sulfide (H2S)

• Thiols traditionally also called mercaptans (denoted as RSH, where R is an organic group

such as methyl, ethyl, etc.)

• Carbon dioxide (CO2)

• Straight-chain alkanes ranging from 2 to 12 carbon atoms (denoted as C2 to C12)

5 • Cyclohexane and perhaps other naphthenes

• Aromatics (benzene, toluene, xylenes, and ethyl benzene) [1-5]

Bangladesh Context

Natural Gas Condensates found in Bangladesh have average specific gravity of 0.81. The specific gravity of condensate from Bibiyana Gas Field and its products are shown in the table

2.1 [24]:

Table-2.1: Specific Gravity of Condensate and Different Petroleum Products Serial Condensate/Product Specific Gravity Sample Source 1 Condensate 0.813 Bibiyana Gas Field 2 Motor Spirit 0.774 3 Octane 0.774 Rashidpur Condensate Fractionation 4 Kerosene 0.818 Plant, SGFL. 5 Diesel 0.869 Fractionation Plant at Kailastilla, 6 LPG 0.556 RPGCL 7 MTT 0.825 BPC 8 SBPS 0.670 BPC 9 Octane Booster 0.996 RCFP, SGFL 10 NGL 0.661 MSTE, SGFL

In December 2010, the laboratory analysis report of Jalalabad condensate shows that, about

71.95% of it contains naphtha or MS , 22.75% Kerosene and 1.25% Gas Oil or Diesel, the rest

4.05% is C4 & lighter hydrocarbons as presented in table-2.2 [25]:

Table-2.2: Fractions of condensate from Jalalabad Gas Field, December 2010

6 Method: ASTM D 2892 (TBP Distillation) Date: 30-12-2010

Sl. TBP cuts Yield (% volume) Comments

a) C4 and Lighter 4.05 Vented out

0 b) Gasoline/Naphtha, C5 – 150 C 71.95 Petrol/MS cut

c) Kerosene, 1500C – 2500C 22.75 Kerosene cut

d) Gas Oil, 2500C + 1.25 Diesel cut

e) Fuel Oil, (RCO), 3500C + 0 Residue

In June 2005, the laboratory analysis report of Bibiyana condensate shows that, about

49.42% of it contains naphtha or MS, 36.44% Kerosene and 11.06% Gas Oil or Diesel; the rest

3.08% is C4 & lighter hydrocarbons as shown in the table-2.3 [25]:

Table-2.3: Fractions of condensate from Bibiyana Gas Field, June 2005

Method: ASTM D 2892 (TBP Distillation) Date: 11-06-2005

Sl. TBP cuts Yield (% volume) Comments

a) C4 and Lighter 3.08 Vented out

0 b) Gasoline/Naphtha, C5 – 150 C 49.42 Petrol/MS cut

c) Kerosene, 1500C – 2500C 36.44 Kerosene cut

d) Gas Oil, 2500C + 11.06 Diesel cut

e) Fuel Oil, (RCO), 3500C + 0 Residue

Table-2.2 and Table-2.3 show that the true boiling point temperature ranges with volume percentage of different petroleum products obtained from condensate of Jalalabad Gas Field and

Bibiyana Gas Field. Temperature below 1500C is MS/Petrol cut, Temperature between 1500C –

2500C is kerosene cut and Temperature greater than 2500C is Diesel cut.

Table-2.4 shows the properties of natural gas produced in different gas fields in Bangladesh.

Table-2.4: Natural Gas Properties of Bangladesh

Table-2.4 shows the natural gas properties of Bangladesh produced in different gas fields. It can be seen from this table-2.4 the chemical composition, water content, specific gravity and calorific value of gas samples from different gas fields of Bangladesh. [6]

Chapter 3

Condensate Handling, Transportation and Storage

3.1 Condensate Handling

Condensate is highly flammable liquid and a lot of safety measures need to be ensured while handling it for transportation, storage and processing. Whenever it is present in closed system such as storage tanks, terminals and bulk plants, the potential exists for release of liquids and vapors. An explosion can occur if these vapors are mixed with air in the flammable range and subjected to a source of ignition. Regardless of the capability of fire protection systems and personnel in the facility, the key to fire protection is fire prevention. Spills and releases should be stopped from entering sewers and drainage systems. Small spills should be covered with wet blankets, and larger spills with foam to prevent vapors from escaping and mixing with air.

Sources of ignition in areas when hydrocarbon vapors may be present should be eliminated or controlled. Portable fire extinguishers should be carried on service vehicles and located at accessible and strategic positions throughout the facility [26].

Fires caused by Hydrocarbon/condensates are controlled by one or combination of following methods:

 Removing fuel: One of the best and easiest methods of controlling and extinguishing a

hydrocarbon fire is to shut off the source of fuel by closing a valve diverting the product

flow or, if a small amount of product is involved, exposures can be controlled by

allowing the product to burn away. Foam may also be used to cover hydrocarbon spills to

prevent vapors from being emitted and mixing with the air.

 Removing oxygen: Another method is to shut off the supply of air or oxygen by smothering

fires with foam or water fog, or by using carbon dioxide or nitrogen to displace air in closed

spaces.

 Cooling: Water fog, mist or spray and carbon dioxide may be used to extinguish certain

petroleum product fires by releasing the temperature of the fire below the product’s ignition

temperature and by stopping vapors from forming and mixing with air.

 Interrupting combustion: Chemicals such as dry powders and halo extinguish fires by

interrupting the chemical reaction of the fire. [5]

3.2 Condensate Transportation

In Bangladesh condensate is transported from production field to the processing units by the following ways:

 Through pipelines

 Barge and

 Tank Lorry

3.2.1 Through Pipelines and Barges:

In Bangladesh condensate produced from Bibiyana and Jalalabad Gas Fields of Chevron (an

IOC) and Beanibazar, Kailashtila and Rashidpur Gas Fields of Sylhet Gas Field Limited (SGFL) under Petrobangla is passed through North-South condensate pipeline (about a 200 km long 6 inch diameter pipe) to Ashugonj condensate storage tanks which are operated by Rupantarito

Prakritik Gas Company Limited (RPGCL). RPGCL has been receiving and delivering

10 condensate at Ashugonj installation since March 01, 2001. About 8.35 MMBBL condensate has been received till the financial year 2010-2011 at Ashugonj installation through the north-south pipeline [27]. This condensate has been delivered from Ashugonj to Eastern Refinery Limited

(ERL) through the river route by Barges. Another 46 km condensate pipeline from Bibiyana Gas

Field to Rashidpur Condensate Fractionation Plant (RCFP) has been connected to receive condensate for fractionation in 2009. RCFP has been receiving condensate from Bibiyana since

July 2009 and about 2.76 MMBBL condensate has been received so far till June 2013 through this pipeline [20-21].

Fig. 3.1: North-South Condensate Pipeline in Bangladesh.

Figure-3.1 shows the North-South condensate pipeline from Kailastilla Gas Field to Ashugonj condensate storage installation. It also represents how different gas fields are connected to N-S pipeline. N-S pipeline is about 175 km long which is 6″ dia. Jalalabad Gas Field is connected by

16.5 km 4″ and Beanibazar Gas Field is connected by 18 km 4″ pipeline to N-S pipeline.

Bibiyana Gas Field is connected by 46 km 6″ pipeline to N-S pipeline at Muchai valve station.

The length of pipeline from Kailastilla Gas Field to Muchai valve station is about 85 km and

Muchai to Ashugonj is about 90 km. Condensates from different gas fields are transported through N-S pipeline to Ashugonj and then transported to ERL through river root by Barges.

Condensate Pilferage of North-South Pipeline

Pilferage of Condensate from North-South pipeline (about 175 km 6″) from Kailastilla to

Ashuganj continues as a serious threat and may create serious crisis anytime in national gas grid.

An organized group of people has been creating a syndicate and doing this for several years. The operator of this North-South pipeline failed to monitor and prevent this criminal activity. The syndicate behind this pilferage has long hands to manage everyone in their way. The pinholes those are created on pipeline during tapping can easily cause fire and shut down of north-south gas pipeline. To stop this pilferage, the operator of this pipeline can set up Supervisory Control and Data Acquisition (SCADA) control system for better monitoring. [28]

3.2.2 Tank Lorry

In Bangladesh another way to transport condensate from producing field to processing plant is through tank lorries. These tank lorries are calibrated by Bangladesh Standard and Testing

Institute (BSTI). BSTI provides calibration chart to the individual tank lorry with one year validity. Tank lorry contractor/driver receives condensate according to the calibration chart and

12 delivers it to different intake points of processing plants according to that calibration chart. After receiving condensate from the contractor/driver, receiver has to provide a Joint Dip Certificate

(JDC). There are 9000 liter and 13500 liter capacity tank lorries available for carrying condensate in Bangladesh.

At present condensates from Jalalabad Gas Field, Kailastilla Gas Field, Beanibazar Gas Field,

Rashidpur Gas Field and Bangura Gas Field etc. are transported through tank lorries. Super

Refinery (Pvt.) Ltd, Chittagong is receiving condensate from Rashidpur Gas Field through tank lorries. Aqua Mineral Turpentine & Solvents Plant Ltd, Dhaka and Chowdhury Refinery Ltd,

Brahmanbaria are receiving condensate from Kailastilla Gas Field through tank lorries. The light condensate produced at Beanibazar Gas Field is carried to RCFP through tank lorries for processing Octane. From July 2009 to June 2013, RCFP has received about 12.76 MBBL condensate from Beanibazar Gas Field in this way [29].

3.3 Storage tanks

There are a number of different types of vertical and horizontal aboveground atmospheric and pressure storage tanks in tank farms, which contain crude oil, petroleum feed stocks, intermediate stocks or finished petroleum products. Their size, shape, design, configuration, and operation depend on the amount and type of products stored and company or regulatory requirements. Aboveground vertical tanks may be provided with double bottoms to prevent leakage onto the ground and cathodic protection to minimize corrosion. Horizontal tanks may be constructed with double walls or placed in vaults to avoid any spill through leakage.

Fig. 3.2: Condensate storage tank.

Figure-3.2 shows the two condensate tanks of Rashidpur Condensate Fractionation Plant (RCFP) of SGFL each having capacity of 5000000 Litre. RCFP receives condensate from Bibiyana Gas

Field. [28]

Atmospheric cone roof tanks

Cone roof tanks are aboveground, horizontal or vertical, covered, cylindrical atmospheric vessels. Cone roof tanks have external stairways or ladders and platforms, and weak roof to shell seams, vents, and scuppers or overflow outlets; they may have accessories such as gauging tubes, foam piping and chambers, overflow sensing and signaling systems, automatic gauging systems etc.

Atmospheric floating roof tanks

Floating roof tanks are aboveground, vertical, open top or covered cylindrical atmospheric vessels that are equipped with floating roofs. The primary purpose of the floating roof is to minimize the vapor space between the top of the product and the bottom of the floating roof so that it is always vapor rich, thus precluding the chance of a vapor-air mixture in the flammable range. All floating roof tanks have external stairways or ladders and platforms, adjustable stairways or ladders for access to the floating roof from the platform, and may have appurtenances such as shunts which electrically bond the roof to the shell, gauging tubes, foam piping and chambers, overflow sensing and signaling systems, automatic gauging systems and so on. Seals or boots are provided around the perimeter of floating roofs to prevent product or vapor from escaping and collecting on the roof or in the space above the roof.

Aboveground floating roof storage tanks are further classified as external floating roof tanks, internal floating roof tanks or covered external floating roof tanks.

Storage tank fire protection

Storage tank fire protection and prevention is a specialized science which depends on the interrelationship of tank type, condition and size; product and amount stored in the tank; tank spacing, dyking and drainage; fire protection facility and response capabilities; outside assistance; company philosophy, industry standards and government regulations. Storage tank fires may be easy or very difficult to control and extinguish, depending primarily on whether the fire is detected and attacked during its initial inception. Storage tank operators should refer to the numerous recommended practices and standards developed by national and international organizations. [30]

Chapter 4

Description of Natural Gas Condensate Recovery and Fractionation Process

4.1 Natural Gas Condensate Recovery Process

Condensate is lighter than crude oil, but heavier than natural gas liquids. The issue with condensate in its natural form is that the lighter hydrocarbons are dangerous to store and transport. Therefore, stabilization is required to allow the condensate to meet specifications.

Often, the condensate is pumped to a sales storage tank, where it flash es off its lighter hydrocarbon components, which usually are captured through vapor recovery compression in order to prevent venting to the atmosphere. This results in lost revenues and potential emission issues.

Condensate often is produced in rich gas gathering pipelines. As the gas cools from wellhead temperature to ground temperature, a percentage of the stream will condense as liquid. The extent of condensate production (i.e., the percentage of the gas stream that will liquefy) varies from system to system, depending on the pressure, temperature and composition of the gas.

Richer gas, lower temperatures and higher pressures are all driving forces toward increased condensate production [23].

Once oil and gas are brought to the surface, main goal becomes the transportation of the oil and gas from the wellhead to the refinery (for final processing) in the best possible form. All equipment and processes required to accomplish this are found at the surface production facility.

All surface production starts right at the wellhead. From wellhead production tubing, the complex mixture of produced fluids moves its way from the production tubing into the flow line.

The challenge is to accurately anticipate the quality and quantity of condensate to be produced during gathering, and to develop a design that processes the condensate to a commercially acceptable form. As mentioned, the condensate often contains lighter hydrocarbons that elevate its vapor pressure to the point where is not saleable and is dangerous to transport. If a multistage stabilizer tower is not employed, a portion of the liquids need to be flashed from storage tanks, and arrangements will have to be made to capture the resulting vapors as necessary to comply with air permit requirements specific to the site.

The gathered fluids must be processed to enhance their value. First of all, fluids must be separated into their main physical components; namely, oil, water, and natural gas. The separation system performs this function. For this, the system is usually made up of a free water knock-out (FWKO), flow line heater, and oil-gas (two-phase) separators.

The physical separation of these three phases is carried out in several steps. Water is separated first from the hydrocarbon mixture (by means of the FWKO), and then the hydrocarbon mixture is separated into two hydrocarbon phases (gas and oil/condensate). A successful hydrocarbon separation maximizes production of condensate or oil, and enhances its properties. In field applications, this is accomplished by means of stage separation. Stage separation of oil and gas is carried out with a series of separators operating at consecutively reduced pressures. Liquid is discharged from a higher-pressure separator into the next-lower-pressure separator. The purpose of stage separation is to obtain maximum recovery of liquid hydrocarbons from the fluids

coming from the wellheads and to provide maximum stabilization of both the liquid and gas effluents. [23]

Surface Production Facility: The physical installation where fluids coming from the wellhead are separated into three main constituents: water, oil, and natural gas.

Fig. 4.1: Purpose of a Surface Production Facility

Fig. 4.1 shows a typical diagram of surface production facility. Usually it is most economical to use three to four stages of separation for the hydrocarbon mixture. Five or six may payout under favorable conditions, when the incoming wellhead fluid is found at very high pressure. However, the increase in liquid yield with the addition of new stages is not linear. For instance, the increase in liquids gained by adding one stage to a single-stage system is likely to be substantial.

However, adding one stage to a three or four stage system is not as likely to produce any major significant gain. In general, it has been found that a three stage separating system is the most cost effective. Figure 4.2 shows this typical configuration [23].

Fig. 4.2: Three-stage Surface Separation Facility

Separating the condensate from the raw natural gas is shown in the figure-4.3:

Fig. 4.3: Schematic flow diagram of the separation of condensate from raw natural gas

There are literally hundreds of different equipment configurations for the processing required to separate natural gas condensate from a raw natural gas. Fig. 4.3 depicts just one of the possible configurations. [23]

The raw natural gas feedstock from a gas well or a group of wells is cooled to lower the gas temperature to below its hydrocarbon dew point at the feedstock pressure and that condenses a good part of the gas condensate hydrocarbons. The feedstock mixture of gas, liquid condensate and water is then routed to a high pressure separator vessel where the water and the raw natural gas are separated and removed. The raw natural gas from the high pressure separator is sent to the main gas compressor.

The gas condensate from the high pressure separator flows through a throttling control valve to a low pressure separator. The reduction in pressure across the control valve causes the condensate to undergo a partial vaporization referred to as a flash vaporization. The raw natural gas from the low pressure separator is sent to a "booster" compressor which raises the gas pressure and sends it through a cooler and on to the main gas compressor. The main gas compressor raises the pressure of the gases from the high and low pressure separators to whatever pressure is required for the pipeline transportation of the gas to the raw natural gas processing plant. The main gas compressor discharge pressure will depend upon the distance to the raw natural gas processing plant and it may require that a multi-stage compressor be used [31].

Different Types of Separation Processes:

The actual process used to separate oil from natural gas, as well as the equipment that is used, can vary widely. Although dry pipeline quality natural gas is virtually identical across different

geographic areas, raw natural gas from different regions may have different compositions and separation requirements. In many instances, natural gas is dissolved in oil underground primarily due to the high pressure that the formation is under. When this natural gas and oil is produced, gas separates out naturally simply due to decreased pressure; much like opening a can of soda pop allows the release of dissolved carbon dioxide. In these cases, separation of oil and gas is relatively easy, and the two hydrocarbons are sent separately for further processing. The most basic type of separator is known as a conventional separator. It consists of a simple closed tank where the force of gravity serves to separate the heavier liquids like oil, and the lighter gases, like natural gas.

Low Temperature Separation Process

This is most often used for wells producing high pressure gas along with light crude oil or condensate. These separators use pressure differentials to cool the wet natural gas and separate the oil and condensate. Wet gas after entering the separator is being cooled slightly by a heat exchanger. The gas then travels through a high pressure liquid 'knockout', which serves to remove any liquids into a low-temperature separator. The gas then flows into this low- temperature separator through a choke mechanism, which expands the gas as it enters into the separator. This rapid expansion of the gas allows the lowering of the temperature in the separator. After liquid removal, the dry gas then travels back through the heat exchanger and is warmed by the incoming wet gas. By varying the pressure of the gas in various sections of the separator, it is possible to vary the temperature which causes the oil and some water to be

condensed out of the wet gas stream. This basic pressure-temperature relationship can work in reverse as well, to extract gas from a liquid oil stream.

Joule Thomson Process

Joule-Thomson (J-T) plants prepare gas for pipeline transmission by removing hydrocarbon liquids that provide an additional revenue stream. The J-T plant is a self-refrigeration system that uses a drop in gas pressure, which allows the gas to expand to create a cooling effect. The unit condenses heavy hydrocarbons out of the gas to meet required gas pipeline specifications. Excess liquids that may condense and cause problems in transmission are recovered and stored for fractionation into sellable hydrocarbon components.

Cryogenic Expansion Process

Cryogenic processes are also used to extract NGLs from natural gas. While absorption methods can extract almost all of the heavier NGLs, the lighter hydrocarbons, such as ethane, are often more difficult to recover from the natural gas stream. In certain instances, it is economic to simply leave the lighter NGLs in the natural gas stream. However, if it is economic to extract ethane and other lighter hydrocarbons, cryogenic processes are required for high recovery rates.

Essentially, cryogenic processes consist of dropping the temperature of the gas stream to around

-120 degrees Fahrenheit.

Cryogenic low temperature distillation processes involve expansion of the gas through a turbo- expander followed by distillation in a demethanizing fractionating column providing high natural gas liquids. Some gas processing plants use a lean oil absorption process rather than the

cryogenic turbo-expander process. Fractionation works based on the different boiling points of the different hydrocarbons in the NGL stream. Essentially, fractionation occurs in stages consisting of the boiling off of hydrocarbons one by one. The name of particular fractionators gives an idea as to its purpose, as it is conventionally named for the hydrocarbon that is boiled off. The entire fractionation process is broken down into steps, starting with the removal of the lighter NGLs from the stream. The particular fractionators are used in the following order:

 Deethanizer - this step separates the ethane from the NGL stream.

 Depropanizer - the next step separates the propane.

 Debutanizer - this step boils off the butanes, leaving the pentanes and heavier

hydrocarbons in the NGL stream.

 Butane Splitter or Deisobutanizer - this step separates the iso-butanes, normal butanes

and C5+ mixture. [23]

4.2 Condensate Fractionation Process

Definition: A process by which components in a chemical mixture are separated according to their different boiling points is called fractionation process. In a fractionation column different components separates from the hydrocarbon mixture because of their relative volatility. Vapors from a boiling solution are passed along a column. The temperature of the column gradually decreases along its length. The vapor in the column has more volatile components towards the top and less volatile components at the bottom. Various fractions of the mixture can be drawn off at different points on the column according to their boiling points. Components with higher boiling points condense on the column and return to the solution; components with lower boiling points pass through the column and are collected as top, intermediate and bottom products. In a

typical condensate fractionation plant in Bangladesh temperature below 1500C is MS/Petrol as top product, temperature between 1500C – 2500C is kerosene as intermediate product and temperature greater than 2500C is Diesel as bottom product. [32]

Description of Fractionation Process

Condensate fractionation process is the process by which different components content in the condensate mixture are separated according to their boiling points in the fractionation column.

Because of the relative volatility of individual components, they are separated as top, intermediates and bottom products. At first Condensate is pre-heated to a desired temperature before fed into the fractionation tower. The more volatile components will migrate to the top of the column and less volatile components will go down of the column through trays. To improve mixture separation, this process is often combined with countercurrent fractionation; here the vapors formed in the still are partly condensed in a fractionating column, the condensate (reflux) is continuously returned to the still, and the vapors remaining after the fractionating column go to a condenser, from which the distillate drops into the collector and establish a vapor-liquid equilibrium in the column. By this means the distillate is enriched to a greater extent in low- boiling components, since the partial condensation (fractionation) of vapors leads primarily to the condensation of high-boiling vapors.

After being separated the top, middle and bottom products from the fractionation tower, all the products are cooled down at desired temperatures and then pass through blending units to improve quality if required. Octane can be processed in this way by using octane booster as additives to increase the octane number at desired level.

Condensate fractionation plant showing major units is presented in Figure-4.1 [27]:

Fig. 4.1: Schematic diagram of a condensate fractionation plant showing major units

Figure-4.1 shows different major units of a typical fractionation process. At first condensate is pre-heated by the products before entering into the furnace. When desired temperature is achieved, it is fed into the distillation/fractionation tower. According to the boiling point of different desired products condensate is separated as top, intermediate and bottom products.

These products are cooled down to ambient temperature. If additives are required to meet the product quality specification, streams are sent to blending unit before sending to storage tanks.

In a typical condensate fractionation plant the top product is motor spirit with a temperature

range within 1500C, intermediate product is kerosene with a temperature range of 1500C – 2500C and the bottom product is diesel with a temperature range greater than 2500C. [32]

In Bangladesh, the most important energy resource natural gas produced from underground reservoirs is processed in gas processing plants to meet the pipeline quality gas specifications.

Normally water is removed from raw gas and Condensate is separated as by-product. Processed natural gas is mainly the combination of Methane (CH4), Ethane (C2H6), Propane (C3H8) and

Butane (C4H10). Sometimes, Propane and Butane are extracted as LPG (Liquefied Petroleum

Gas). Gas Condensate consists of liquid Hydrocarbons e.g., Pentane (C5H12), Hexane (C6H14),

Heptanes and higher. Condensates are require to be fractionated to get products like Petrol (or

Motor Spirit, MS), Diesel (or Gas Oil), Kerosene etc.

Chapter 5

Condensate Chain in Bangladesh

5.1. Condensate Production

Natural Gas Condensate Production Companies in Bangladesh are as follows:

1. Bangladesh Gas Fields Company Limited (BGFCL)

2. Bangladesh Petroleum Exploration and Production Company Limited (BAPEX)

3. Sylhet Gas Fields Limited (SGFL)

4. Chevron Bangladesh Limited (IOC)

5. Tullow Bangladesh Limited (IOC)

6. Santos (IOC)

Condensate Production Companies in Bangladesh

5.1.1 Bangladesh Gas Fields Company Limited (BGFCL)

Bangladesh Gas Fields Company Limited (BGFCL) derives its origin from Pakistan Shell Oil Company Limited (PSOC) which was formed in Karachi, Pakistan on 30th May, 1956. The company started its operation on a small scale with Titas and Habigonj Gas Field in the late sixties. With the emergence of Bangladesh and promulgation of Petroleum Act, 1974, the GOB bought all shares of Pakistan Shell Oil Company w. e. f 9th August, 1975. PSOC was renamed as Bangladesh Gas Fields Company Limited on 12th September, 1975.

There are six gas fields under this company named Titas, Habigonj, Bakhrabad, Narsingdi, Meghna and Kamta. Among them five gas fields: Titas, Habigonj, Bakhrabad, Narsingdi and Meghna are in production while production from Kamta has been suspended [6].

27 During the financial year 2011-2012, the company produced about 278.52 BCF gas and 181.08

MBBL condensate from 32 producing wells [6]. This company has a cumulative gas production of 6560.46 BCF gas and 6019.56 MBBL condensate till June 2013 [16].

5.1.2 Bangladesh Petroleum Exploration and Production Company Limited (BAPEX)

BAPEX emerged as an oil and gas exploration company in July, 1989 pursuant to government decision to expedite petroleum exploration activities in the country. Subsequently, on 29th February, 2000 BAPEX was transformed into an exploration cum Production Company with a view to making itself reliant. At present BAPEX is exploring and drilling wells as well as producing gas from Saldanadi, Fenchugonj and Semutang. Bapex discovered three gas fields in four geological structures which are now in production [6].

During 2011-2012, BAPEX produced 19.21 BCF gas and 11.15 MBBL condensate from its five flowing wells located in three gas fields [6]. This company has a cumulative gas production of 179.93 BCF gas and 128.27 MBBL condensate till June 2013 [16].

5.1.3 Sylhet Gas Fields Limited (SGFL)

Sylhet Gas Fields Limited is the second largest state owned gas producing company in the country. It was originally owned by Pakistan Petroleum Ltd. (PPL). The company was abandoned by PPL after the independence of Bangladesh and taken over by the government. The company was incorporated on 8th May, 1982 in the name of Sylhet Gas Fields Limited (SGFL).

The company under its umbrella currently operates Sylhet (Haripur), Kailastilla, Rashidpur and

Beanibazar gas fields. A total of 15 wells (2 wells at sylhet, 6 wells at Kailastilla, 5 wells at

Rashidpur and 2 wells at Beanibazar) are currently on stream. A considerable amount of condensate and Natural Gas liquid (NGL) is extracted from the gas stream during the course of processing [6].

28 During 2011-2012, SGFL produced 55.41 BCF gas and 379.88 MBBL condensate from its 15 flowing wells located in three gas fields [6]. This company has a cumulative gas production of

1386.25 BCF gas and 8791.44 MBBL condensate till June 2013 [16].

5.1.4 Chevron Bangladesh Limited (IOC)

Chevron is one of the largest foreign investors in Bangladesh, providing employment and supplying nearly 50 percent of the country's natural gas consumption. The two-year startup of the

Bibiyana Field demonstrated their ability to handle complex projects involving many technical, environmental and workforce challenges. To bring the field into production in 2007, Chevron recruited about 2,300 Bangladesh citizens to work on the project. Chevron also produces natural gas from the Jalalabad and Moulavi Bazar fields [6].

Chevron supports Bangladesh's goal of maximizing the nation's energy potential by actively investing in projects that deliver more gas to Petrobangla, the national oil company. Chevron has developed natural gas production in three fields: Jalalabad, Moulavi Bazar and Bibiyana. In

2011, total daily production averaged 915 million cubic feet of natural gas and 4,000 barrels of condensate [33].

During 2011-2012, Chevron has produced 350 BCF gas and 1245.15 MBBL condensate from its

20 flowing wells located in three gas fields [6]. This company has a cumulative gas production of 2402.386 BCF gas and 14644.92 MBBL condensate till june 2013 from its 20 flowing wells

(4 at Jalalabad Gas Field, 4 at Moulvibazar Gas Field and 12 at Bibiyana Gas Field) located in three gas fields [16].

Chevron decided to move ahead with the Bibiyana expansion project in July 2012. The $500

MM expansion project includes a gas plant expansion, new development wells and an enhanced 29 liquids recovery unit. It is expected to increase the total maximum daily production by more than

300 million cubic feet of natural gas and 4,000 barrels of condensate. First production from the expansion project is expected in 2014. Four development wells were drilled at Bibiyana in 2012, and more development drilling is planned for 2013 and 2014 [33].

5.1.5 Tullow Bangladesh Limited (IOC)

Tullow first got involved in oil and gas exploration activities in Bangladesh in 1997 and now participates in exploration, development and production activities of Block 9. Tullow operates the 1,770 sq km Block 9 with partners Niko Resources and the Bangladesh Petroleum

Exploration & Production Company Limited.

A total of three well were drilled in 2003 and 2004 that resulted in two gas discoveries, Bangora and Lalmai. The appraisal programme for these discoveries was completed in 2006 and production from the Bangora-1 well commenced in the same year [9-10].

In March 2012, Tullow decided to sell its’ Asian assets in order to focus on its core African and

Atlantic Margin strategy. Tullow signed an agreement with KrisEnergy Asia Holdings BV on 7

April 2013, for the sale of 100% of the share capital of Tullow Bangladesh Limited. The sale is conditional upon receipt of Government of Bangladesh and Petrobangla approvals and consents

[33]. During 2010-2011, Tullow produced 40.4 BCF gas from its four flowing wells located at

Bangora gas fields. This company has a cumulative gas production of 226.27 BCF gas and

496.17 MBBL condensate till June 2013.

5.1.6 Cairn Energy Bangladesh/Santos

30 Australian oil company Santos has acquired all stakes and liabilities of Scottish Cairn Energy in

Bangladesh.

Sangu is the only producing gas field under this company while exploration in Magnama and

Hatiya structures are yet to start.

During 2011-2012, Cairn/Santos produced 3.8 BCF gas and 0.17 MBBL condensate from its two flowing wells located at Sangu gas fields [6]. This company has a cumulative gas production of

487.55 BCF gas and 182.62 MBBL condensate till June 2013 [16].

5.2 Condensate Processing

There are a number of government organization and private companies engaged in processing of natural gas condensate into different valuable petroleum products in Bangladesh.

Different Fractionated Products those are obtained from Condensates are as follows:

1. Diesel Oil (DO)

2. Liquefied Petroleum Gas (LPG)

3. High Octane Blending Content (HOBC)

4. Motor Spirit (MS)/Gasoline

5. Superior Kerosene Oil (SKO)

6. Mineral Turpentine (MTT)

7. Special Boiling Point Solvents (SBPS)

31 The Condensate Processing Plants those are fractionating condensate into production are listed in table-5.1: Table-5.1: Condensate Processing Plants are in Production in Bangladesh

Start of Processing Production Capacity Serial Name of the Company Name of Products (BBL/Day)

Haripur Condensate Fractionation Plant, 1 1960 100 MS, SKO SGFL Condensate Fractionation Plant Titas Field , 2 1967 450 MS, DO BGFCL Kailashtilla Condensate Fractionation Plant , 3 1984 300 MS, DO SGFL Condensate Fractionation Plant at 4 1997 850 MS, DO Kailashtilla, RPGCL Natural Gas Condensate Fractionation Plant, 5 2007 1200 MS/HOBC, DO ERL RPGCL NGL Fractionation Plant at 6 2007 850 MS, LPG Kailashtilla, RPGCL Condensate Fractionation Plant at Bakhrabad 7 2008 450 MS, DO

Government Organization Field, BGFCL Rashidpur Condensate Fraction Plant(RCFP), MS, SKO, DO, 8 2009 2500 SGFL HOBC Rashidpur Condensate Fraction Plant(RCFP), MS, SKO, DO, 9 2012 1250 SGFL HOBC MS, DO, MTT, 10 Super Refinery (Pvt.) Ltd, Ctg. 1997 2500 SBPS Aqua Mineral Turpentine & Solvents Plant MS, DO, MTT, 11 2011 500 Ltd, Tongi, Dhaka. SBPS Private 12 Chowdhury Refinery Ltd, Brahmmanbaria. 2011 100 DO, SBPS, MTT

32 Table-5.1 shows that there are nine fractionation plants by government owned companies that can

process about 8500 BBL/Day. Private owned three processing plants with total capacity of 3100

BBL/Day are on production [24]. If they run with full capacity, these plants are capable of

processing condensate about 11600 BBL/Day. At present, condensate production rate by production

companies is about 7000 BBL/Day [16].

Table-5.2: Name of the Fractionation Plants to come into Production Capacity Serial Name of the Plant Present Status (BBLD) 1 Lark Petroleum Ltd, Ctg 1700 Installation Complete 2 Petromax Refinery Ltd, Khulna. 2500 Installation Complete 3 PHP Refinery Ltd, Ctg 1700 Installation Complete 4 CVO Petroleum Ltd, Ctg 1150 Installation Complete 5 Equity Refinery Ltd, Ctg 2700 Installation Complete 6 JB Refinery Ltd, Sirajgonj - Installation Complete 7 Synthetic Resin Products (Pvt.) Ltd, Ctg - Installation Complete 8 Rashidpur Condensate Fractionation Plant, Habigonj. 4000 Under Construction 9 ASRM Ltd, Pabna. 2500 Under Construction 10 KAY & QUE (Bangladesh) Ltd, Feni. 1800 Under Construction 11 Next Generation Graphics Ltd 1700 Under Construction 12 Partex Petro Ltd, Ctg - Under Construction 13 A & Z Refinery Ltd, Munsigonj - Under Construction 14 Meghna Group of Companies Ltd, Dhaka - Under Construction 15 M/S. M. Co. Petroleum Ltd - Under Construction 16 M/S. Moynamoti Refinery Ltd. - Under Construction 17 M/S. Niagara Refinery Ltd, Gazipur. - Under Construction 18 M/S. Agmor Refinery - Under Construction 19 Rupsha Refinery Ltd, Munshigonj - Under Construction

Table-5.2 shows the fractionation plants to come into production. Some of them have completed installation and yet to go for production. Some of them are under construction. Some of them

33 will take condensate from different Gas Fields of Bangladesh and some of them will import condensates to fractionate into finished products [24].

Presently in Bangladesh, condensate production is less than the existing condensate processing capacity. A new fractionation plant installation will face challenge if there is no abrupt increasing condensate production. It is a concern whether additional plants will get sufficient supply from domestic suppliers or even if they import condensate, whether it will be economically viable for them.

5.3 Uses/Sale of Petroleum Products

All petroleum products are solely distributed and marketed by Bangladesh Petroleum

Corporation (BPC). There are three distribution and marketing subsidiary companies under BPC.

The subsidiary marketing companies of BPC are Padma Oil Company Limited (POCL), Meghna

Petroleum Limited (MPL), and Jamuna Oil Company Limited (JOCL). These companies play the vital role of uniform distribution and marketing of different petroleum products throughout the country from their perspective depots situated at several points in the country [34].

Uses of Petroleum Products as fuel:

Motor Spirit (MS), Gasoline and Octane are usually used as vehicle fuel in this country.

Kerosene is mainly used for lighting lamp. Diesel oil is used as vehicle fuel, electricity generating fuel and also machine fuel for irrigation purpose. Liquefied Petroleum Gas (LPG) is used as household cooking fuel, it is also used for generating electricity and cfor running vehicle recently.

34 Uses of petroleum products as solvent:

Uses of Special Boiling Point Solvents (SBPS):

• The products are widely used in adhesives, rubber, for cleaning purposes, in

pharmaceuticals and surface coating industries and also for edible oil extraction.

• The special boiling point solvents (SBPS) are used in quick-drying lacquers, paints,

varnishes, inks, tyres, rubber solutions, adhesives and cleaners.

Uses of Mineral Turpentine (MTT):

• The two primary uses of turpentine in industry are as a solvent and as a source of

materials for organic synthesis. As a solvent, turpentine is used for thinning oil-based

paints, for producing varnishes, and as a raw material for the chemical industry. Its

industrial use as a solvent in industrialized nations has largely been replaced by the much

cheaper turpentine substitutes distilled from crude oil. Turpentine has long been used as a

solvent, mixed with beeswax or with carnauba wax, to make fine furniture wax for use as

a protective coating over oiled wood finishes (e.g., lemon oil).

35 Chapter 6 Natural Gas Condensate Production and Fractionation Data 6.1 Condensate Production

After the first discovery of natural gas in Haripur in 1955, the significance and importance condensates gradually increased over time. Table-6.1 shows the condensate production from different gas fields operated by the companies of petrobangla and international oil companies like Chevron, Tullow and Cairn energy during 2001-2012. Figure-6.1 shows the yearly comparative condensate production. Table-6.2 shows field wise cumulative condensate production from the beginning till June 2013. Table-6.5 shows field wise cumulative gas and condensate production as well as petroleum products which have been processed in their same fractionation plants situated in their particular gas fields. Table-6.6 shows condensate production and petroleum products data from different gas fields during 2009-2010.

6.2 Condensate Fractionation

In Bangladesh both government and private sector companies are fractionating condensate by receiving condensate from condensate production companies. Table-6.8 shows the amount of condensate received and processed by ERL in the recent years. Table-6.9 shows the amount of condensate received and different petroleum products produced by Super Refinery (Pvt.) Ltd in the recent years. Table-6.10 shows the percentage of different petroleum products produced by different fractionation plants situated in Bangladesh. From Table-6.11 to Table-6.14 show the consumption of condensate, Production and sales of different petroleum products of Rashidpur

Condensate Fractionation Plant (RCFP).

Table-6.1:Condensate Production by the Production Companies of Bangladesh (2001-2012) Unit: Condensate in thousand BBL NOC IOC Fiscal Yearly CHEVRON CAIRN Year BAPEX BGFCL SGFL total MB JB BB sub-total Sangu 2001-2002 4.85 471.38 758.00 1234.23 2002-2003 6.54 489.40 979.65 1475.59 2003-2004 5.61 205.11 532.80 743.51 2004-2005 8.21 453.10 532.00 993.30 2005-2006 9.90 445.58 499.61 30.90 609.44 640.34 15.59 1611.02 2006-2007 7.93 215.52 479.57 24.69 623.27 16.03 663.98 11.47 1378.46 2007-2008 10.40 197.13 442.25 14.56 550.20 669.04 1233.79 5.29 1888.87 2008-2009 20.80 192.54 403.88 9.78 525.81 1220.29 1755.87 2.89 2375.97 2009-2010 10.49 188.38 423.35 4.49 501.08 1266.28 1771.84 2.82 2396.88 2010-2011 8.53 181.04 387.40 3.10 424.45 1187.42 1614.98 1.20 2193.15 2011-2012 11.15 181.08 379.88 2.48 81.15 1161.52 1245.15 0.17 1817.43 Total 18108.41

Table-6.1shows the condensate production during 2001-2012 both by national and international Oil companies of Bangladesh. [6-15]

Table-6.2: Gas Production by the Production Companies of Bangladesh (2001-2012) Unit: Gas in BCF NOC IOC Fiscal Yearly CHEVRON CAIRN Year BAPEX BGFCL SGFL total MB JB BB sub-total Sangu 2001-2002 5.43 235.44 71.61 312.48 2002-2003 6.22 249.79 77.776 333.79 2003-2004 6.5 265.14 71.45 343.09 2004-2005 17.47 276.32 62.31 356.10 2005-2006 21.57 275.04 60.64 38.42 65.05 103.47 55.55 516.27 2006-2007 19.5 273.96 65.28 38.14 71 31 140.14 40 538.88 2007-2008 16.65 264.14 61.33 32.52 64.41 125.84 222.77 29.05 593.93 2008-2009 13.8 254.31 57.38 26.9 57.82 192.28 277 18.09 620.58 2009-2010 14.14 258.31 57.27 21.3 59.46 240.13 320.89 13.4 664.01 2010-2011 13.32 270.83 57.31 17.7 50.3 253.4 321.4 6.5 669.36 2011-2012 19.21 278.52 55.41 17 61.4 271.6 350 3.8 706.94 Total 5655.43

Table-6.2 shows Yearly Gas Production during 2001-2012 both by national and international oil companies of Bangladesh. [6-15]

Gas and Condensate Production of Bangladesh (2001-2012) vs FY

Gas (BCF) Condensate (MBBL) 3000

2500 2376 2397 2193

2000 1889 1817 1611 1476 1500 1378 1234 993 1000 744 621 664 669 707 516 539 594 500 312 334 343 356

0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Fig. 6.1: Graph of Condensate Production vs Fiscal Year (2001-2012)

Figure-6.1 is the representation of table-6.1 and table-6.2 which shows the variation of condensate production with gas production. It can be seen that condensate production increased significantly in 2007-08 when the IOC’s came into production and highest production was achieved in 2009-2010 with a total production of 2397 thousand barrel. Figure-6.2, Figure-6.3, Figure-6.4 and Figure-6.5 show the comparison of gas and condensate production of BAPEX, BGFCL, SGFL and IOC’s respectively.

Gas and Condensate Production of BAPEX (2001-2012) vs FY Gas (BCF) Condensate (MBBL) 25 21.57 21 19.5 20 19.21 17.47 16.65 15 13.8 14.14 13.32 11.15 10 10 10 10 8 8 9 6.227 6.5 5.435 6 5

0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Fig. 6.2: Gas and Condensate Production of BAPEX (2001-2012)

Gas and Condensate Production of BGFCL (2001-2012) vs FY Gas (BCF) Condensate (MBBL) 600 471 489 500 453 446 400 276 275 274 279 300 250 265 264 254 258 271 235 216 205 197 193 188 200 181 181 100 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Fig. 6.3: Gas and Condensate Production of BGFCL (2001-2012)

Gas and Condensate Production of SGFL (2001-2012) vs FY Gas (BCF) Condensate (MBBL) 1200 980 1000 800 758

600 533 532 500 480 442 404 423 387 380 400

200 72 78 71 62 61 65 61 57 57 57 55 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Fig. 6.4: Gas and Condensate Production of SGFL (2001-2012)

Gas and Condensate Production of IOC (2001-2012) vs FY Gas (BCF) Condensate (MBBL) 2000 1759 1775 1616 1500 1239 1245

1000 656 675

500 334 354 252 295 328 159 180 0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Fig. 6.5: Gas and Condensate Production of IOC Companies (2001-2012)

Table-6.3: Cumulative Condensate Production of different production companies of Bangladesh till June'2013 Cumulative Cumulative Gas NOC/ Name of the Name of the No of No of Well Condensate Production till IOC Company Field Well in Production Production till June 2013 June 2013 BCF MBBL Titas 16 16 3619.98 4430.26 Habigonj 11 9 1970.58 105.84 Feni 39.51 92.87 BGFCL Narsingdi 2 2 143.88 320.87 Meghna 1 1 46.10 74.01 Bakhrabad 9 6 740.42 995.71 sub-total 39 34 6560.46 6019.56 Sylhet 3 2 200.49 772.54 Kailastila 2 2 217.38 2352.59 MSTE, 4 SGFL Kailastila 4 374.72 3712.24 NOC Rashidpur 7 4 518.26 689.90 Beanibazar 2 2 75.39 1264.17 sub-total 18 14 1386.25 8791.44 Salda 3 2 56.75 40.52 Fenshugonj 3 2 102.27 81.46 Shahbajpur 2 1 8.27 0.31 BAPEX Semutang 5 1 5.69 3.12 Sundalpur 1 1 4.43 0.15 Srikail 3 2 2.52 2.70 sub-total 17 9 179.93 128.27 NOC Total 74 57 8126.65 14939.28 CAIRN Sangu/Santos 4 2 487.55 182.62 Jalalabad 4 4 763.74 7217.52 Moulvibazar 5 4 227.36 100.53 CHEVRON Bibiyana 12 12 1411.28 7144.25 IOC sub-total 21 20 2402.39 14644.92 NIKO Feni 5 22.88 14.73 TULLOW Bangura 7 4 226.27 496.17 IOC Total 37 26 3139.09 15338.44 Grand Total 111 83 11265.74 30277.72 Table-6.3 shows cumulative gas and condensate production by different gas fields situated in Bangladesh till June 2013. Among the National Oil Companies (NOC's), SGFL has produced maximum condensate of 8,791 thousand barrel and total NOC's production is 14,939 thousand barrel. On the other hand Chevron has produced maximum condensate of 14,644 thousand barrel. Total condensate production till June 2013 is 30,277 thousand barrel. [16]

Table-6.4: Cumulative Condensate Production till June 2013 Production Company Thousand Barrel Percentage of total production BGFCL 6019.6 20% BAPEX 128.3 0% SGFL 8791.4 29% CAIRN/Santos 182.6 1% Chevron 14644.9 48% NIKO 14.7 0% TULLOW 496.2 2% Total 30277.7 100%

Cumulative Condensate Production till June 2013 TULLOW, 2% NIKO, 0%

BGFCL, 20% BGFCL BAPEX, 0% BAPEX SGFL CAIRN/Santos Chevron, 48% Chevron NIKO SGFL, 29% TULLOW

CAIRN/Santos, 1%

Fig. 6.6: Condensate Production Percentage by different Production Companies.

Table-6.4 shows the company wise condensate production as a percentage of total production.

Figure-6.6 is the representation of table-6.4. It can be seen that Chevron has produced 48% of total condensate in Bangladesh. Among the NOC’s SGFL produced 29% of total condensates in

Bangladesh.

Table-6.5: Cumulative Gas, Condensate and Petroleum Products of different Production Companies of Bangladesh (Field wise) till June'2013 NOC Name of the Name of the No of Well in Gas Condensate MS HSD Kerosene Octane /IOC Company Field Well Production Production Production BCF MBBL MBBL MBBL MBBL MBBL Titas 16 16 3619.98 4430.26 843.93 3519.03 Habigonj 11 9 1970.58 105.84 Feni 39.51 92.87 BGFCL Narsingdi 2 2 143.88 320.87 Meghna 1 1 46.10 74.01 Bakhrabad 9 6 740.42 995.71 603.91 610.19 sub-total 39 34 6560.46 6019.56 1447.84 4129.23 Sylhet 3 2 200.49 772.54 698.83 0.11 Kailastila 2 2 217.38 2352.59 1169.89 1068.09 MSTE,Kailastila 4 4 374.72 3712.24 SGFL Rashidpur 7 4 518.26 689.90 NOC Beanibazar 2 2 75.39 1264.17 RCFP 1311.81 789.22 502.46 155.22 sub-total 18 14 1386.25 8791.44 3180.53 1857.43 559.91 155.22 Salda 3 2 56.75 40.52 Fenshugonj 3 2 102.27 81.46 Shahbajpur 2 1 8.27 0.31 BAPEX Semutang 5 1 5.69 3.12 Sundalpur 1 1 4.43 0.15 Srikail 3 2 2.52 2.70 sub-total 17 9 179.93 128.27 NOC Total 74 57 8126.65 14939.28 4628.38 5986.65 559.91 155.22 CAIRN/Santos Sangu 4 2 487.55 182.62 Jalalabad 4 4 763.74 7217.52 Moulvibazar 5 4 227.36 100.53 CHEVRON Bibiyana 12 12 1411.28 7144.25 IOC sub-total 21 20 2402.39 14644.92 NIKO Feni 5 22.88 14.73 TULLOW Bangura 7 4 226.27 496.17 IOC Total 37 26 3139.09 15338.44 Grand Total 111 83 11265.74 30277.72 4628.38 5986.65 559.91 155.22 Table-6.5 shows the condensate production from different production companies of Bangladesh. Amount of different petroleum products obtained from their own processing plants till June 2013. There are condensate fractionation plants at Titas and Bakhrabad Gas Fields of BGFCL, at Sylhet and Kailastilla of SGFL to fractionate their own condensates. RCFP is fractionating condensates of Bibiyana Gas Field.[24]

Table-6.6: Condensate Uses/Distribution in the Year 2009-2010 Sold to Sl. Name of the Name of the Condensate Fractionation Super Sold to BPC No. Company Field Production in Own Field Refinery MBBL MBBL MBBL MBBL Titas 150.00 150.00 0 0 Habiganj 4.76 0.00 0 0 1 BGFCL Narshingdi 26.28 38.38 0 0 Bakhrabad 7.34 0.00 0 0 Total from BGFCL = 188.38 188.38 0 0 Haripur 8.93 8.66 0 0 Kailashtilla 78.03 94.92 10.78 0 2 SGFL MSTE Plant 226.21 0.00 205.22 0 Rashidpur 19.88 0.00 8.94 13.19 Beanibazar 92.97 0.51 89.60 0.00 Total from SGFL = 426.02 104.08 314.55 13.19 * Salda Nadi 1.67 0.00 0.00 0.00 3 BAPEX Fenchuganj 15.29 0.00 12.45 0.00 Shabazpur 0.08 0.00 0.00 0.00 Total from BAPEX = 17.04 0.00 12.45 0.00 Jalalabad 504.23 *135.39 0.00 368.83 4 CHEVRON Moulvibazar 4.52 0.00 4.53 0.00 Bibiyana 1274.24 **450.44 129.34 694.46 Total from Chevron = 1782.98 585.83 133.87 1063.30 5 Tullow Bangura 64.65 0.00 64.66 0.00 6 Cairn Shangu 2.84 0.00 0.00 3.02 7 Naiko Feni 5.26 0.00 0.00 0.00 Total 2487.17 878.30 525.53 1079.50 * signifies that this 135.39 MBBL condensates has been processed in the fractionation plant situated at Kailastilla. ** signifies that 450.44 MBBL of condensates has been processed at RCFP during in this year.

Table-6.6 it is shows the production and distribution of condensates from different production fields. This table provides a clear picture of condensate distribution chain in

Bangladesh. [7] [21] [24]

Table-6.7: Condensate Production in the Year 2009-2010

Name of the Company Thousand BBL Percentage of total production

BGFCL 188.38 8%

SGFL 426.02 17%

BAPEX 17.04 1%

IOC 1855.74 75%

Total 2487.17 100%

Condensate Production 2009-2010

BGFCL 7% SGFL 17% BAPEX 1%

IOC 75%

Fig. 6.7: Condensate Production in the year 2009-2010

Table-6.7 shows condensate production in the year 2009-2010 by the different production companies of Bangladesh. Figure-6.7 is the representation of the table-6.7. During the year 2009-

2010 all the international companies together produced 75% of total condensate in Bangladesh.

SGFL produced 17% and BGFCL produced 7% of the total condensate.

Table-6.8: Amount of NGC Received, Processed and Export by ERL/BPC:

Processing Quantity Financia Received Export Sl l year Quantity Refined in NGC Spiking with Crude oil Total Quantity fraction Plant Fractionation plant Processing MBBL MBBL MBBL MBBL MBBL 1 2012-13 524.84 284.76 170.64 455.40 0.00 2 2011-12 448.48 251.45 72.64 324.09 82.69 3 2010-11 506.20 220.22 55.88 324.09 304.96 4 2009-10 1079.01 270.40 95.26 365.66 663.69 5 2008-09 1581.76 299.11 283.63 582.74 998.08 Table-6.8 shows the amount of natural gas condensate received in the recent years by ERL from all the production companies. ERL fractionates some part of the condensates in their own fractionation plant and some part of the condensates is used as spiking with crude oil feed to refinery process which helps better separation of crude oil mix. Last column shows that in the year 2012-2013 no condensate was exported as the existing fractionation were enough to fractionate all the condensates produced [22] [28] [34].

Amount of Condensate Recieved, Processed, Spiking with Crude and Export of ERL (Thousand BBL)

Received Quantity Refined in NGC fraction Plant Spiking with Crude oil Export Quantity 1800 1582 1600 1400 1200 1079 998 1000 800 664 525 600 448 506 400 285 251 305 270 299284 171 220 200 73 83 95 0 56 0 2012-13 2011-12 2010-11 2009-10 2008-09 Fig. 6.8: Condensate Received, Processed, Spiking with Crude oil and Expot of ERL

Figure-6.8 is the graphical representation of the table-6.8 which shows amount of condensates received, processed, spiked with crude oil and exported by ERL from 2008-2012. It can be seen that ERL received 1582 thousand barrel, maximum amount of condensate in the year 2008-09.

Table-6.9: Condensate received, Production of Petroleum Products and Sales of Super Refinery (Pvt.) Ltd. Name of Items 2009-2010 2010-2011 2011-2012 Unit MBBL MBBL MBBL Condensate Received 526.35 597.66 519.65 Production of Petroleum Products MS 134.62 160.60 119.33 LMS 4.01 1.95 2.07 Diesel 12.74 34.76 66.29 MTT 96.63 118.69 129.30 SS-I 46.41 43.27 64.08 KSO 208.85 201.50 125.93 Loss 10.07 11.44 10.14 Total Production 513.33 572.22 517.14 Sales of Petroleum Products MS 134.05 160.66 117.64 LMS 4.00 1.95 2.07 Diesel 13.81 40.82 66.06 MTT 96.54 117.37 129.38 SS-I 46.36 50.91 64.24 KSO 208.73 201.66 125.94 Total Sales 503.49 573.37 505.33

Table-6.9 shows the amount of condensates received, amount of petroleum products produced and amount of sales of products by Super Refinery (Pvt.) during 2009-2012. [35]

Condensate recieved and Production of Super Refinery (pvt.) Ltd. (Thousand BBL)

2009-2010 2010-2011 2011-2012 700 598 600 526 520 500 400 300 209202 163 200 139 129 126 121 97 119 100 66 46 43 64 13 35 0 Conden MS Diesel MTT SS-I KSO

Fig.6.9: Condensate Received and Production of different petroleum products of Super Refinery (pvt.) Limited.

Sales of Petroleum Products of Super Refinery (pvt.) Limited (Thousand BBL)

2009-2010 2010-2011 2011-2012 250.00 208.73201.66 200.00 164.56 142.05 129.38 150.00 121.77 117.37 125.94 96.54 100.00 66.06 64.24 40.82 46.3650.91 50.00 13.81 0.00 MS Diesel MTT SS-I KSO

Fig.6.10: Sales of different petroleum products of Super Refinery (pvt.) Limited.

Figure-6.9 and figure-6.10 are the graphical representation of table-6.9. Figure-6.9 shows the amount of condensate received and different petroleum products produced by Super Refinery

(pvt.) Limited. In the year 2010-11, it received 598 thousand barrels of condensates. Figure-6.10 shows the sales scenario of petroleum products of Super Refinery (pvt.) Limited.

Table-6.10: Products of different plants as percentage of total production

Processing Motor Other Serial Name of the Company Capacity Octane Diesel Kerosene LPG Spirit Products (BBL/Day) Condensate Fractionation Plant at Bakhrabad Field, 1 850 35.61% 64.39% BGFCL Condensate Fractionation Plant Titas Field , 2 600 18.61% 81.39%

BGFCL Condensate Fractionation Plant at Kailashtilla, 3 850 71.57% 28.43% RPGCL 4 Natural Gas Condensate Fractionation Plant, ERL 1200 45.50% 31.70% 22.80% 5 Haripur Condensate Fractionation Plant, SGFL 100 66.77% 33.23% 6 Kailashtilla Condensate Fractionation Plant , SGFL 300 53.12% 46.88% Rashidpur Condensate Fraction Plant(RCFP), 7 2500 12.40% 26.28% 31.70% 22.80% 6.82% SGFL Govenment Organization Rashidpur Condensate Fraction Plant(RCFP), 8 1250 12.40% 26.28% 31.70% 22.80% 6.82% SGFL RPGCL NGL Fractionation Plant at Kailashtilla, 9 850 61.13% 38.87% RPGCL Aqua Mineral Turpentine & Solvents Plant Ltd, 10 500 14.32% 5.73% 79.95% Dhaka 11 Chowdhury Refinery Ltd, Brahmmonbaria. 100 7.62% 92.38% Private 12 Super Refinery (Pvt.) Ltd, Chittagong. 2500 23.56% 2.26% 74.18%

Table-6.10 shows the condensate fractionation plants with their processing capacity. Productions are shown as a percentage of the total production of the plants. MS is produced in all the plants, Octane is produced at RCFP, Kerosene is produced at ERL, Haripur

Condensate Fractionation Plant and at RCFP, and LPG is produced at RPGCL NGL Fractionation Plant at Kailashtilla.[24]

Table-6.11: Yearly Condensate Receive, Production of different petroleum products and Sales Data (2009-2010) of Rashidpur Condensate Fractionation Plant (RCFP) Unit: Liquid in thousand barrel

Light Condensate Condensate Received Name of the Month Received from Production Sales from Bibiyana BBGF

MS Octane Diesel Kerosene MS Octane Diesel Kerosene July'2009 29.32 0.00 5.42 0.00 1.76 2.01 0.00 0.00 0.00 0.00 August'2009 74.27 0.00 32.13 0.00 12.75 14.83 2.32 0.00 1.98 2.83 September'2009 20.37 0.00 3.33 0.00 3.63 2.69 7.13 0.00 2.21 2.32 October'2009 10.89 0.00 0.02 0.00 0.01 0.01 6.68 0.00 5.26 2.66 November'2009 16.27 0.00 16.64 0.00 7.85 3.38 9.34 0.00 10.65 4.64 December'2009 22.17 0.00 16.25 0.00 10.89 7.47 10.70 0.00 12.96 3.91 January'2010 41.32 0.17 13.48 0.00 12.17 6.26 13.25 0.00 13.99 7.92 February'2010 58.86 0.17 23.46 0.00 16.36 6.32 24.45 0.00 14.77 9.34 March'2010 25.18 0.17 24.69 0.00 18.37 7.31 26.77 0.00 11.16 7.53 April'2010 63.18 0.00 24.16 1.58 12.01 8.65 24.34 0.00 7.14 7.92 May'2010 51.30 0.00 19.74 1.70 14.11 8.80 25.08 0.34 13.77 7.87 June'2010 37.38 0.00 24.02 0.00 13.73 10.68 23.66 0.28 12.79 8.89 YearlyTotal 450.50 0.51 203.34 3.29 123.65 78.41 173.72 0.62 106.70 65.83

Table-6.11 shows that RCFP started to receive condensate from mid July'2009 and also started to process condensate at the same time with a capacity of 2500 BBLD. RCFP has also started to receive light condensate from Beanibazar Gas Field from January'2010. RCFP produces Diesel, Kerosene and Motor spirit as direct product by fractionating condensate. Octane is processed from light condensate by blending additives into it to increase the octane number as per specification to meet the quality standard. [21]

Table-6.12: Yearly Condensate Receive, Production of different petroleum products and Sales Data (2010-2011) of RCFP [21] Unit: Liquid in thousand barrel Condensate Light Name of the Received Condensate Production Sales Month from Received Bibiyana from BBGF

MS Octane Diesel Kerosene MS Octane Diesel Kerosene July'2010 35.53 0.00 15.16 0.00 3.13 5.51 28.92 0.11 4.65 5.55 August'2010 36.11 0.00 25.95 0.00 12.28 10.18 31.98 0.23 11.56 7.30 September'2010 56.62 0.85 25.98 0.85 12.72 9.72 28.42 0.34 11.89 9.96 October'2010 33.15 1.01 21.05 1.66 10.07 8.47 25.05 3.68 9.18 9.23 November'2010 57.44 1.18 21.24 8.48 15.19 9.69 14.07 3.51 17.60 8.15 December'2010 63.68 0.79 27.62 5.47 26.41 11.02 29.21 7.61 38.83 12.45 January'2011 84.91 0.56 32.20 5.13 30.46 8.15 35.12 5.86 31.53 12.51 February'2011 54.78 0.00 28.35 4.13 27.52 8.08 30.65 3.93 27.30 16.98 March'2011 85.17 0.34 34.59 4.41 25.64 12.50 31.98 7.05 25.81 12.17 April'2011 69.54 0.23 33.09 4.18 20.09 15.89 33.99 4.30 14.55 14.77 May'2011 71.01 0.34 36.89 4.53 20.28 18.26 27.65 3.74 16.82 14.55 June'2011 66.15 0.34 31.61 1.89 16.94 16.45 17.72 2.43 12.68 11.43 YearlyTotal 714.08 5.63 333.74 40.73 220.73 133.93 334.75 42.79 222.40 135.06 Cumulative Since 1st 1164.58 6.14 537.08 44.02 344.38 212.34 508.47 43.42 329.11 200.89 July,2009

Table-6.13: Yearly Condensate Receive, Production of different petroleum products and Sales Data (2011-2012) of RCFP [36]

Unit: Liquid in thousand barrel

Light Condensate Condensate Name of the Month Received from Production Sales Received from Bibiyana BBGF

MS Octane Diesel Kerosene MS Octane Diesel Kerosene

July'11 54.37 0.00 24.18 2.75 11.09 12.23 22.36 2.26 14.94 11.49

August'11 52.12 0.33 28.42 0.77 14.04 13.63 23.24 1.92 13.77 10.36

September'11 52.41 0.28 18.04 1.84 15.37 8.16 20.94 1.98 23.45 11.09

October'11 40.50 0.00 24.29 1.89 15.20 7.18 27.65 1.64 14.66 14.89

November'11 68.69 0.00 29.60 0.91 18.45 9.88 26.85 0.85 18.92 12.68

December'11 51.62 0.00 31.24 0.37 17.97 12.42 28.58 0.57 19.08 10.81

January'12 49.07 0.00 29.46 0.00 16.32 7.91 33.23 0.00 15.62 9.00

February'12 74.51 0.00 35.46 0.00 19.46 11.00 34.70 0.00 20.21 10.98

March'12 79.33 0.67 37.51 2.13 23.63 12.52 35.97 0.00 17.96 11.66

April'12 66.32 0.56 32.99 2.28 18.75 11.55 32.58 0.00 14.55 11.43

May'12 61.13 0.11 33.94 2.88 19.55 14.76 33.59 1.47 24.81 9.68

June'12 67.38 0.37 34.73 0.39 18.70 12.23 33.76 3.28 12.52 9.28

YearlyTotal 717.44 2.33 359.86 16.22 208.53 133.46 353.45 13.98 210.48 133.36

Cumulative Since 1st 1882.02 8.47 896.94 60.24 552.91 345.80 861.92 57.40 539.59 334.25 July,2009

Table-6.14: Yearly Condensate Receive, Production of different petroleum products and Sales Data (2012-2013) of RCFP [37] Unit: Liquid in thousand barrel Light Name of the Condensate Condensate Received from Production Sales Month Bibiyana Received from BBGF MS Octane Diesel Kerosene MS Octane Diesel Kerosene July'12 70.29 0.84 31.65 7.42 18.35 11.74 38.15 5.69 14.66 9.17 August'12 65.50 0.59 33.18 7.69 16.47 11.01 29.49 6.14 19.94 8.77 September'12 70.73 0.00 37.84 4.99 16.81 10.67 39.71 9.68 12.23 9.85 October'12 34.93 0.39 13.74 7.56 9.33 7.29 36.79 7.64 10.30 11.15 November'12 69.95 0.42 27.44 8.06 15.72 10.59 26.29 5.55 16.58 8.94 December'12 77.93 0.00 46.50 7.37 28.35 10.72 27.91 7.67 38.15 9.62 January'13 89.90 0.34 38.77 8.44 26.19 12.80 30.31 6.76 29.49 12.96 February'13 85.85 0.17 39.05 7.22 23.50 15.12 38.77 6.99 21.23 17.89 March'13 81.75 0.17 39.07 6.07 24.97 15.02 39.68 6.51 20.89 20.21 April'13 82.04 0.51 33.52 7.82 19.31 16.44 33.08 8.66 15.51 21.34 May'13 66.47 0.51 36.69 7.29 17.77 17.36 38.72 8.63 17.28 16.98 June'13 83.27 0.34 37.42 10.37 19.60 17.95 36.31 11.35 16.30 17.04 YearlyTotal 878.60 4.29 414.84 90.32 236.36 156.72 415.22 91.27 232.56 163.93 Cumulative Since 1st 2760.62 12.76 1311.78 150.56 789.26 502.51 1277.14 148.67 772.15 498.17 July,2009

Table-6.11 to 6.14 shows RCFP received 2760.62 MBBL of condensate from Bibiyana Gas Field and 12.76 MBBL of light condensate from Beanibazar Gas Field till June 2013. RCFP produced 1311 thousand barrel MS, 150 thousand barrel octane, 789 thousand barrel diesel and 502 thousand barrel kerosene during 2009-2013. [37]

Condensate Recieved and different Products of RCFP (Thousand BBL) 2009-10 2010-11 2011-12 2012-13 1000 883

800 720 720

600 451 360 415 400 334 236 221 203 209 134 157 200 124 133 90 78 41 3 16 0 Condensate MS Octane Diesel Kerosene Fig. 6.11: Condensates received and different products of RCFP

Sales of Different Products of RCFP (Thousand BBL) 2009-10 2010-11 2011-12 2012-13 450 415 400 335 353 350 300 233 250 222 210 200 174 164 135 133 150 91 107 100 66 43 50 1 14 0 MS Octane Diesel Kerosene

Fig. 6.12 : Sales of different products of RCFP

Figure-6.11 and figure-6.12 are the graphical representation of the table-6.11, table-6.12, table-6.13 and table-6.14. Figure-6.11 shows the amount of condensate received and different products produced at

RCFP during 2009-2013. Amount of condensate received by RCFP increased to 883 thousand barrel in the year 2012-2013 after the installation of an additional fractionation plant of 1250 BBLD capacity.

Table-6.15: Cumulative Production of RCFP (July'09-June'13)

Name of the Product Amount (Thousand BBL) Percentage of total production

MS 1312 48%

Octane 151 5%

Diesel 789 29%

Kerosene 503 18%

Total 2754 100%

Cumulative Production of RCFP (Thousand BBL) (From July'2009-June'2013)

Kerosene 503 18%

MS 1312 48% Diesel 789 29% Octane 151 5%

Fig. 13: Cumulative Production with percentage of different products of RCFP

Table-6.15 shows the amount of different petroleum products produced at RCFP. Figure-6.13 is the graphical representation of the table-6.15 which shows the amount of different products produced at

RCFP as a percentage of total production during 2009-13.

Table-6.16: Price of Condensate and Petroleum products of BPC Products Price/Ltr(Exc VAT) VAT/Ltr Price/Ltr(Inc VAT) Effective Date Condensate 51 7.65 58.65 11/1/2013 MS 74.41 11.16 85.58 11/1/2013 Diesel 52.96 7.94 60.91 11/1/2013 Kerosene 53.58 8.04 61.62 11/1/2013 Octane 76.74 11.51 88.25 11/1/2013

Table-6.16 shows condensate and petroleum products price of which BPC buys petroleum products from government and private companies. Both the government and private companies buy condensate at Tk 51 per litre. [38]

Table-6.17: Local Selling Price of Petroleum Products Serial Product Name Local Selling Price (Tk/litre) Effective Date 1 HSD (Diesel) 68.00 4/1/2013 2 SKO (Kerosene) 68.00 4/1/2013 3 HOBC (Octane) 99.00 4/1/2013 4 MS (Petrol) 96.00 4/1/2013 5 LP Gas (12.50kg per Cylinder) 700.00 19/06/2009 6 SPBS 99.00 11/1/2013 7 MTT 72.00 11/1/2013

Table-6.17 shows local selling prices of different petroleum products. Diesel, Kerosene, MS,

Octane and LPG are marketed and distributed solely by BPC through its subsidiary companies.

But there is no fixed guidelines regarding marketing of SBPS and MTT. [34]

Table-6.18: Sales of Petroleum Products of BPC (Thousand Barrel) FY HOBC MS SKO HSD SBP MTT LPG 2003-04 1183 1229 5333 14513 7 54 262 2004-05 1158 1169 4186 16399 9 56 232 2005-06 1027 1245 3838 16644 13 48 252 2006-07 775 1052 3555 16612 11 56 190 2007-08 732 1014 3115 16897 11 44 167 2008-09 636 937 2635 16663 8 29 120 2009-10 695 1033 2896 18596 7 48 187 2010-11 791 1149 3054 23455 7 58 241 2011-12 871 1289 2756 23463 7 62 234 2012-13 901 1378 2421 21466 8 78 223

Table-6.18 shows the sales of petroleum products of BPC from 2003-2013. And figure-6.14 to

6.20 shows the sales of HOBC, MS, Kerosene, Diesel, SBPS, MTT and LPG respectively. [34]

Demand of petroleum products is increasing every year. As a result, many new fractionation plants are being installed. If these plants do not get condensate supply from local production, they will need to import from other countries.

HOBC Sales of BPC vs FY HOBC (Thousand Barrel)

1400 1183 1158 1200 1027 1000 871 901 775 732 791 800 636 695 600 400 200 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Fig. 6.14: HOBC Sales of BPC from 2003-13

MS Sales of BPC vs FY)

MS (Thousand Barrel) 1500 1289 1378 1229 1169 1245 1052 1149 1014 937 1033 1000

500

0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Fig. 6.15: MS Sales of BPC from 2003-13

SKO Sales of BPC vs FY SKO (Thousand Barrel) 6000 5333 5000 4186 3838 4000 3555 3115 3054 2896 2756 3000 2635 2421 2000 1000 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Fig. 6.16: Kerosene Sales of BPC from 2003-13

HSD Sales of BPC vs FY HSD (Thousand Barrel) 25000 23455 23463 21466 20000 18596 16399 16644 16612 16897 16663 14513 15000

10000

5000

0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Fig. 6.17: Diesel Sales of BPC from 2003-13

SBPS Sales of BPC vs FY SBPS (Thousand Barrel) 15 13 11 11 9 10 8 8 7 7 7 7 5

0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Fig. 6.18: SBPS Sales of BPC from 2003-13

MTT Sales of BPC vs FY MTT (Thousand Barrel) 100 78 80 62 56 56 58 60 54 48 44 48 40 29

0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Fig. 6.19: MTT Sales of BPC from 2003-13

LPG Sales of BPC vs FY LPG (Thousand Barrel) 300 262 252 241 250 232 234 223 190 187 200 167 150 120 100 50 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Fig. 6.20: LPG Sales of BPC from 2003-13

CONCLUSIONS

Associated condensate production with gas is playing a vital role in the national economy of

Bangladesh by reducing the import of finished petroleum products those are obtained from processing of condensates. The yearly condensate production rate by gas production companies is yearly about 2000 thousand barrel and total 30277.7 thousand barrel has been produced till

June 2013. Earlier only Eastern refinery limited (ERL) used to process crude oil into finished petroleum products to meet the national fuel demand. But at present different condensate fractionation plants are also fractionating condensate into different petroleum products like diesel, kerosene, gasoline, motor spirit, octane, mineral turpentine and solvents. Sylhet Gas

Fields Limited (SGFL) installed a fractionation plant in 1960. Condensate production rate increased substantially with the establishment of IOC’s and as a result, condensate processing requirement also increased. This made some private companies interested to start business in this sector. At present condensate production rate is about 7000BBL/Day and a total fractionation capacity is about 11000 BBL/Day. Chevron will increase condensate production and some other private companies will establish new fractionation plants in near future.

RECOMMENDATIONS

Some of the recommendations are stated below:

1. There should be a proper planning for condensate production of all the companies and

different components of condensate activities like production, processing and

distribution.

2. There should be proper guidelines regarding condensate fractionation business in

Bangladesh.

3. A close inter-relationship among condensate production and processing companies of

Bangladesh must be developed.

4. A database of national petroleum products demand for equitable regional distribution

need to be developed so that all the fractionation plants can intake and process

condensate throughout the year round to meet national crisis.

5. The accurate determination of the additional amounts of condensates that need to be

imported is necessary.

6. A study can be carried out to find out the future condensate production and fractionation

capacity.

7. A study can be carried out to find out the remaining recoverable reserves of condensates

from different gas fields of Bangladesh.

References

[1] Mccain Jr, W.D. 1990. The Properties of Petroleum Fluids. Tulsa, Oklahoma, PennWell Corporation. [2] Burcik, E.J. 1997. Properties of Petroleum Reservoir Fluids. Boston, International Human Resources Development Corporation. [3] Pedersen, K. S. and Christensen, P.L. 2007. Phase Behavior of Petroleum Reservoir Fluids. Boca Raton, CRC Press. [4] Dandekar, A.Y. 2006. Petroleum Reservoir Rock and Fluid Properties. Boca Raton, CRC Press. [5] Holstein, E.D. 2007. Reservoir Engineering and Petro physics In Petroleum Engineering Handbok, ed. Lake, L.W. Richardson, Texas, SPE. [6] Annual Report, 2010-2011, Petrobangla, Dhaka. [7] Annual Report, 2009-2010, Petrobangla, Dhaka. [8] Annual Report, 2008-2009, Petrobangla, Dhaka. [9] Annual Report, 2006-2007, Petrobangla, Dhaka. [10] Annual Report, 2005-2006, Petrobangla, Dhaka. [11] Annual Report, 2004-2005, Petrobangla, Dhaka. [12] Annual Report, 2003-2004, Petrobangla, Dhaka. [13] Annual Report, 2002-2003, Petrobangla, Dhaka. [14] Annual Report, 2001-2002, Petrobangla, Dhaka. [15] MIS Report, June 2013, Petrobangla, Dhaka. [16] MIS Report, May 2013, Petrobangla, Dhaka. [17] MIS Report, April 2013, Petrobangla, Dhaka. [18] MIS Report, January 2013, Petrobangla, Dhaka. [19] Annual Report, 2010-2011, SGFL. [20] Annual Report, 2009-2010, SGFL. [21] Annual Report, 2010-2011, RPGCL [22] MIS Report, Feb 2013, SGFL.

[23] MIS Report, Nov, Dec 2012, RPGCL. [24] Annual Petroleum Products Distribution Report, 2011-2012, BPC. [25] Development Project Proposal, SGFL, April 2010 [26] Brewster, OC.; “Separation of Hydrocarbons”, Litchfield, Conn. Assignor to Refinery Engineers Inc. New York, N.Y., a corporation of Missouri, Nov.1, 1938, pp.1-6 [27] Begum, D.A, Rahman, A. and Kirtania, K. 2010.„Condensate Fractionation Column: Design variation study by simulation‟ Journal of Chemical Engineering, IEB; Vol. ChE. 25, No. 1, December 2010 [28] Chowdhury, P.K., 2010. „Feasibility of a Second Oil Refinery in Bangladesh‟, M.Engg. Project thesis, April 2010, PMRE Dept., BUET. [29] Khan, M.N., 2011. „Feasibility study for Installation of a Condensate Fractionation Plant at Kailashtila Gas Field‟, M.Engg. Project thesis, March 2011, IPE Dept., BUET. [30] Richard, S.k., „Storage and Transportation of Crude Oil, Natural Gas, Liquid Petroleum Products and other Chemicals‟. http://www.ilo.org/safework_bookshelf/content [31] RPGCL. http://www.rpgcl.org.bd

[32] SGFL. http://www.sgfl.org.bd

[33] BGFCL. http://www.bgfcl.org.bd [34] PETROBANGLA. http://www.petrobangla.org.bd

[35] BPC. http://www.bpc.gov.bd [36] Super Refinery (Pvt.) Ltd. http://supergroupbd.com/refine1.php?id=18 [37] Personal Communication [38] Gudmundsson, J.S. „Dehydration of Natural Gas‟, Norwegian University of Science and

Technology.

Appendix

Conversion of Units

1 MMCM=35.31 MMCF

1 BCF=1000 MMCM

1 TCF=1000 BCF

1 BBL=159 Liter

1 MBBL=1000 BBL

1 MMBBL=1000000BBL

Sample Calculation

Condensate Specific Gravity=0.81

1 Ton Condensate=1000 kg

= (1000/0.81) Lt.

= 1234.57 Lt.

= (1234.57/159) bbl

= 7.765 bbl

1 Ton Condensate = 7.765 bbl

Abbreviations

BAPEX-Bangladesh Petroleum Exploration and Production Company Limited

BBL-Barrel

BGFCL-Bangladesh Gas Fields Company Limited

BPC-Bangladesh Petroleum Corporation

ERL-Eastern Refinery Limited

HOBC-High Octane Blending Content

IOC-International Oil Company

JOCL- Jamuna Oil Company Limited

LPG- Liquefied Petroleum Gas

MBBL-Thousand Barrel

MMBBL-Million Barrel

MPL-Meghna Petroleum Limited

MS-Motor Spirit

MTT-Mineral Turpentine

NGL- Natural Gas Liquid

NOC-National Oil Company

POCL-Padma Oil Company Limited

RCFP-Rashidpur Condensate Fractionation Plant

RPGCL-Rupantorito Prakritik Gas Company Limited

SBPS-Special Boiling Point Solvents

SCADA-Supervisory Control and Data Acquisition

SGFL-Sylhet Gas Field Limited

SKO-Superior Kerosene Oil