The project aims to (i) improve efficiency in natural gas production by installing seven wellhead gas compressors at location A of Titas gas field, and (ii) expand natural gas transmission pipeline capacity by constructing an approximately 181-kilometer, 36-inch parallel gas transmission pipeline from Chittagong through Feni to Bakhrabad.
| Project Name | Natural Gas Infrastructure and Efficiency Improvement Project | ||||||||||||
| Project Number | 45203-006 | ||||||||||||
| Country | Bangladesh |
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| Project Status | Active | ||||||||||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Partnerships |
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| Sector / Subsector | Energy / Oil and gas transmission and distribution |
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| Gender Equity and Mainstreaming | No gender elements | ||||||||||||
| Description | The project aims to (i) improve efficiency in natural gas production by installing seven wellhead gas compressors at location A of Titas gas field, and (ii) expand natural gas transmission pipeline capacity by constructing an approximately 181-kilometer, 36-inch parallel gas transmission pipeline from Chittagong through Feni to Bakhrabad. | ||||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | In Bangladesh, natural gas exploration and production has not kept pace with demand growth. Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) has not done extensive exploration for many years due to lack of public funds. Exploration in offshore blocks stalled in the early 2000s for various reasons, including unattractive production-sharing contracts. To combat the gas crisis, there is an urgent need to accelerate gas exploration and production. The Government of Bangladesh established the gas development fund in 2012 to support upstream activities and undertake large-scale exploration in onshore and offshore areas. BAPEX has initiated well appraisals, such as three-dimensional seismic surveys and development of discovered and producing gas fields, to prove additional gas reserves. Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) has assigned offshore exploration rights to and signed new production-sharing contracts with international oil companies to complement BAPEX's onshore exploration program. In the meantime, Petrobangla is pursuing a program to increase recovery from existing gas fields by installing wellhead gas compressors. Inadequate gas transmission infrastructure is another hurdle in Bangladesh's gas sector. The gas transmission infrastructure coverage is not able to serve the country's key market areas, as most gas supply points are in the northeast and central regions, while delivery points are in the central, south, and west. Ongoing Asian Development Bank loans have greatly enhanced the transmission capability. However, the Chittagong area is still suffering from a gas supply shortfall due to full capacity attainment of the existing 175 km, 24-in Bakhrabad Chittagong gas transmission pipeline. To enhance the throughput capabilities and facilitate transmission of additional gas, the gas transmission network must be expanded to accommodate the upcoming diversified gas supply sources from imports and offshore discoveries into the national gas network. |
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| Impact | Energy sector contribution to sustainable economic growth increased (Bangladesh Seventh Five-Year Plan) | ||||||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Efficiency in gas production improved and gas transmission pipeline capacity expanded. |
| Progress Toward Outcome | All contracts awarded. Six contracts have been completed and two are ongoing. |
| Implementation Progress | |
| Description of Project Outputs | Wellhead gas delivery pressure at location A of Titas gas field increased and sustained. Capacity of Chittagong -Feni -Bakhrabad gas transmission pipeline expanded. |
| Status of Implementation Progress (Outputs, Activities, and Issues) | The wellhead compressor package was awarded in October 2020. |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | A |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | The recruitment of consultants will follow ADB''s Guidelines on the Use of Consultants (2013, as amended from time to time). |
| Procurement | Project-related procurement will be carried out following ADB''s Procurement Guidelines (2015, as amended from time to time). As the project will be jointly financed by ADB and AIIB, universal procurement will be applied to works, goods, and consulting services to be financed under the project. |
| Responsible ADB Officer | Yue, Yunfeng |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Energy Division, SARD |
| Executing Agencies |
Bangladesh Gas Fields Company Ltd. Birashar, Brahmanbaria Brahmanbaria-3400 Bangladesh Gas Transmission Company Ltd. F-18/A, Sher-E-Bangla Nagar Administrative Area, Agargaon Dhaka, 1207 |
| Timetable | |
|---|---|
| Concept Clearance | 04 Oct 2013 |
| Fact Finding | 15 Feb 2016 to 02 Mar 2016 |
| MRM | 22 Aug 2016 |
| Approval | 18 Nov 2016 |
| Last Review Mission | - |
| Last PDS Update | 07 Dec 2020 |
Loan 3461-BAN
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 18 Nov 2016 | 29 Dec 2016 | 08 Mar 2017 | 30 Jun 2022 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 100.00 | Cumulative Contract Awards | |||
| ADB | 100.00 | 18 Nov 2016 | 67.51 | 0.00 | 68% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 18 Nov 2016 | 35.30 | 0.00 | 35% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Unsatisfactory | - | - | - | - | Unsatisfactory |
Loan 3462-BAN
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 18 Nov 2016 | 29 Dec 2016 | 08 Mar 2017 | 30 Jun 2022 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 293.00 | Cumulative Contract Awards | |||
| ADB | 67.00 | 18 Nov 2016 | 46.03 | 0.00 | 68% |
| Counterpart | 226.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 18 Nov 2016 | 23.50 | 0.00 | 35% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Unsatisfactory | - | - | - | - | Unsatisfactory |
Loan 8318-BAN
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 15 Aug 2016 | 08 May 2017 | 03 Jul 2017 | 30 Jun 2022 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 60.00 | Cumulative Contract Awards | |||
| ADB | 0.00 | 15 Aug 2016 | 0.00 | 39.85 | 66% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 60.00 | 15 Aug 2016 | 0.00 | 19.47 | 32% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Unsatisfactory | - | - | - | - | Unsatisfactory |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
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The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
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ADB Approves Second Cofinancing with AIIB to Boost Natural Gas Output, Transmission in Bangladesh
ADB has approved a $167 million loan to improve natural gas production and transmission in Bangladesh. AIIB is expected to lend an additional $60 million, subject to board approval, to be managed by ADB.
Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Contractor Address | Executing Agency | Contract Description | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|---|---|
| WELLHEAD COMPRESSORS AT LOCATION-A TITAS GAS FIELD DESIGN, ENGINEERING, SUPPLY. INSTALLATION, TESTING COMMISSIONING AND OPERATION | Loan 3461 | 09 Nov 2020 | CHINA PETROLEUM PIPELINE ENGINEERING CO.LTD. | CPP NO 87 GUANGYANG ROAD LANGFANG CITY HEIBEI PROVINCE CHINA,PEOPLE'SREP.OF | Gas Transmission Company Ltd. | TURNKEY | 66,420,828.60 | 29,222,061.77 |
| WELLHEAD COMPRESSORS AT LOCATION-A TITAS GAS FIELD DESIGN, ENGINEERING, SUPPLY, INSTALLATION, TESTING COMMISSIONING AND OPERATION | Loan 3462 | 09 Nov 2020 | CHINA PETROLEUM PIPELINE ENGINEERING CO.LTD. | CPP NO 87 GUANGYANG ROAD LANGFANG CITY HEIBEI PROVINCE CHINA,PEOPLE'SREP.OF | Gas Transmission Company Ltd. | TURNKEY | 66,420,828.60 | 19,924,133.02 |
| SCADA AND TELECOMMUNICATION SYSTEM | Loan 3461 | 18 Nov 2019 | NARI TECHNOLOGY CO. LTD. | BUILDING 2, NO.19 CHENGXIN AVE.,JIANGNIN G ECO.&TECH. DEV. ZONE NANJING PRC CHINA,PEOPLE'SREP.OF | Gas Transmission Company Ltd. | TURNKEY | 1,299,850.00 | 571,934.00 |
| SCADA AND TELECOMMUNICATION SYSTEM | Loan 3462 | 18 Nov 2019 | NARI TECHNOLOGY CO. LTD | BUILDING 2, NO 19, CHENGXIN AVE. JIANGNING ECO. & TECH. DEV. ZONE,NANGING CHINA,PEOPLE'SREP.OF | Gas Transmission Company Ltd. | TURNKEY | 1,299,850.00 | 389,955.00 |
| DESIGN, BUILD, PROCUREMENT, SUPPLY & INSTALLATION, CONSTRUCTION, TESTING & COMMISSIONING OF 2 TOWN BORDER STATION & 1 METERING STATION | Loan 3461 | 13 Sep 2018 | VALITALIA S.P.A. - SYSTEMS DIVISION | VIA CAMPOLONGO 97, 35020 DUE CARRARE (PD ITALY | Gas Transmission Company Ltd. | TURNKEY | 11,090,777.00 | 4,849,656.00 |
| DESIGN, BUILD, PROCUREMENT & SUPPLY, INSTALLATION, CONSTRUCTION, TESTING & COMMISSIONING OF 2 TOWN BORDER STATION AND 1 METRING STATION | Loan 3462 | 13 Sep 2018 | VALITALIA S.P.A. - SYSTEMS DIVISION | VIA CAMPOLONGO 97, 35020 DUE CARRARE ITALY | Gas Transmission Company Ltd. | TURNKEY | 11,090,777.00 | 3,306,583.00 |
| INSTALLATION OF 36" OD HIGH PRESSURE NATURAL GAS TRANSMISSION PIPELINE (TURNKEY BASIS) | Loan 3461 | 31 May 2018 | GYPSUM-CORTTECH JV | 185 A POCKET B MAYUR VIHAR PHASE 2 DELHI INDIA | Gas Transmission Company Ltd. | TURNKEY | 1,956,610.00 | 1,955,868.00 |
| INSTALLATION OF 36" OD HIGH PRESSURE NATURAL GAS TRANSMISSION PIPELINE (TURNKEY BASIS) | Loan 3462 | 31 May 2018 | GYPSUM-CORRTECH JV | 185 A POCKET B MAYUR VIHAR PHASE 2 DELHI INDIA | Gas Transmission Company Ltd. | TURNKEY | 1,334,052.00 | 1,333,546.00 |
| IMPLEMENTATION CONSULTANTS FOR PART A:INSTALLATION OF WELLHEAD COMPRESSORS AT LOCATION A OF TITAS GAS FIELD | Loan 3461 | 19 Jan 2018 | DORSCH INTERNATIONAL CONSULTANTS GMBH | LANDSBERGER STRASSE 368 MUNICH 80687 GERMANY | Gas Transmission Company Ltd. | CONSULTANCY | 1,453,733.00 | 639,359.00 |
| IMPLEMENTATION CONSULTANTS FOR PART A:INSTALLATION OF WELLHEAD COMPRESSORS AT LOCATION A OF TITAS GAS FIELD | Loan 3462 | 19 Jan 2018 | DORSCH INTERNATIONAL CONSULTANTS GMBH | LANDSBERGER STRASSE 368 MUNICH 80687 GERMANY | Gas Transmission Company Ltd. | CONSULTANCY | 1,453,733.00 | 435,926.00 |
| ANTI CORROSION COATED LINE PIPE (36" OD, API 5LX70 | Loan 3461 | 13 Dec 2017 | CHINA NORTH VEHICLE CORP.LTD/NORINCO VEHICLE | FLOOR 11 NORINCO INTERNATIONAL PLAZA. 6 ZHENGDA ROAD SHIJINGSHAN DIST. BEIJING CHINA,PEOPLE'SREP.OF | Gas Transmission Company Ltd. | TURNKEY | 61,137,638.00 | 26,900,561.00 |
| ANTI CORROSION COATED LINE PIPE (36" OD, API 5LX70 | Loan 3462 | 13 Dec 2017 | CHINA NORTH VEHICLE CORP. LTD/NORINCO VEHICLE | 11 NORINCO INTERNATIONAL PLAZA, 6 ZHENGD A ROAD, SHIJINGSHAN DISTRICT, BEIJING CHINA,PEOPLE'SREP.OF | Gas Transmission Company Ltd. | TURNKEY | 61,137,638.00 | 18,341,291.00 |
| Lot C: Butt Weld Fittings, Tee's Elbows, Gauges, Etc (COL) | Loan 3461 | 17 Apr 2017 | Sungil Co. Ltd. | 45, Noksansandan 289Ro, Gangseogu Busan Korea, Republic Of | Gas Transmission Company Ltd. | Supply of Goods | 1,469,624.20 | 1,469,624.20 |
| Procurement of Teg, Cathodic Protection (CP) Materials and Coating and Wrapping Materials under Lot-D of Package 2 | Loan 3462 | 17 Apr 2017 | Sungil Co. Ltd. | 45, Noksansandan 289Ro, Gangseogu Busan Korea, Republic of | Gas Transmission Company Ltd. | Supply of Goods | 1,002,016.50 | 1,002,016.50 |
| Lot B Ball Valves, Gate Valves and Plug Valves | Loan 3461 | 11 Apr 2017 | Zicom Equipment Pte Ltd. Singapore | 29 Tuas Avenue 3, Singapore Singapore | Gas Transmission Company Ltd. | Supply of Goods | 322,079.23 | 322,079.23 |
| Procurement of Teg, Cathodic Protection (CP) Materials and Coating and Wrapping Materials under Lot-D of Package 2 | Loan 3461 | 11 Apr 2017 | Sichuan Kcon Valve Manufacturing Co. Ltd. | West 3 Section Shenzhen Road Guanghan Industrial Economic Devt Zone, Ptc China, People's Republic of | Gas Transmission Company Ltd. | Supply of Goods | 532,181.36 | 532,181.36 |
| Procurement of Induction Bends, Different Types of Valves, Pig Traps, Misc Fittings, CP Materials, Coating and Wrapping Materials | Loan 3461 | 11 Apr 2017 | Ningbo Skyway Imp. and Exp. Co. Ltd. | 4F No. 18 Mansion, 199 Yongfeng Road Ningbo China, People's Republic of | Gas Transmission Company Ltd. | Supply of Goods | 817,539.80 | 817,539.80 |
| Lot B Ball Valves Gate Valves and Plug Valves | Loan 3462 | 11 Apr 2017 | Zicom Equipment Pte Ltd. Singapore | 29 Tuas Avenue 3, Singapore Singapore | Gas Transmission Company Ltd. | Supply of Goods | 219,599.48 | 219,599.48 |
| Procurement of Induction Bends, Different Types of Valves, Pig Traps, Miscellaneous Fittings, CP Materials, Coating and Wrapping Materials | Loan 3462 | 11 Apr 2017 | Sichuan Kcon Valve Manufacturing Co. Ltd. | West 3 Section Shenzhen Road, Guanghan Industial Eco Development Zone China, People's Republic of | Gas Transmission Company Ltd. | Supply of Goods | 362,850.92 | 362,850.92 |
| PMU Staff Salaries, Operating Expenses, Travel, Training, Computers, Software, Office Furniture, Vehicle, and Other Eligible Expenditures | Loan 3462 | 11 Apr 2017 | Ningbo Skyway Imp. and Exp. Co. Ltd. | 4F No. 18 Mansion, 199 Yongfeng Road Ningbo China, People's Republic of | Gas Transmission Company Ltd. | Supply of Goods | 1,858,045.00 | 557,413.50 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Natural Gas Infrastructure and Efficiency Improvement Project: Procurement Plan | Procurement Plans | Oct 2016 |