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Bangladesh: Natural Gas Infrastructure and Efficiency Improvement Project

Sovereign (Public) Project | 45203-006 Status: Active

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 Details

Project Officer
Yue, Yunfeng South Asia Department Request for information
Country
  • Bangladesh
Modality
  • Loan
Sector
  • Energy
 
Project Name Natural Gas Infrastructure and Efficiency Improvement Project
Project Number 45203-006
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 8318-BAN: Natural Gas Infrastructure and Efficiency Improvement Project
Asian Infrastructure Investment Bank US$ 60.00 million
Loan 3461-BAN: Natural Gas Infrastructure and Efficiency Improvement Project
Ordinary capital resources US$ 100.00 million
Loan 3462-BAN: Natural Gas Infrastructure and Efficiency Improvement Project
concessional ordinary capital resources lending / Asian Development Fund US$ 67.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Sector / Subsector

Energy / Oil and gas transmission and distribution

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.

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.

Title Document Type Document Date
Gas Transmission Company Limited Audited Project Financial Statements (July 2019-June 2020) Audited Project Financial Statements Dec 2020
Natural Gas Infrastructure and Efficiency Improvement Project: Bangladesh Gas Fields Company Limited Audited Project Financial Statements (July 2018-June 2019) Audited Project Financial Statements Mar 2020
Natural Gas Infrastructure and Efficiency Improvement Project: Gas Transmission Company Limited Audited Project Financial Statements (July 2018-June 2019) Audited Project Financial Statements Nov 2019
Natural Gas Infrastructure and Efficiency Improvement Project: Bangladesh Gas Fields Company Limited Audited Project Financial Statements (July 2017-June 2018) Audited Project Financial Statements Dec 2018
Natural Gas Infrastructure and Efficiency Improvement Project: Gas Transmission Company Limited Audited Project Financial Statements (July 2017-June 2018) Audited Project Financial Statements Dec 2018
Loan Agreement (Ordinary Operations) for Loan 3461-BAN: Natural Gas Infrastructure and Efficiency Improvement Project Loan Agreement (Ordinary Resources) Dec 2016
Loan Agreement (Special Operations) for Loan 3462-BAN: Natural Gas Infrastructure and Efficiency Improvement Project Loan Agreement (Special Operations) Dec 2016
Project Agreement for Loans 3461 and 3462-BAN: Natural Gas Infrastructure and Efficiency Improvement Project (GTCL) Project/Program Agreements Dec 2016
Project Agreement for Loans 3461 and 3462-BAN: Natural Gas Infrastructure and Efficiency Improvement Project (BGFCL) Project/Program Agreements Dec 2016
Natural Gas Infrastructure and Efficiency Improvement Project: Report and Recommendation of the President Reports and Recommendations of the President Oct 2016
Natural Gas Infrastructure and Efficiency Improvement Project: Project Administration Manual Project/Program Administration Manual Oct 2016
Natural Gas Infrastructure and Efficiency Improvement Project: Procurement Plan Procurement Plans Oct 2016
Bangladesh Natural Gas Transmission and Distribution Development Investment Program Initial Poverty and Social Analysis Dec 2013
Bangladesh Natural Gas Transmission and Distribution Development Investment Program Project Preparatory Technical Assistance Reports Dec 2013

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.

Title Document Type Document Date
Natural Gas Infrastructure and Efficiency Improvement Project: Component 2 - Chittagong-Bakhrabad Gas Transmission Pipeline Environmental Safeguard Monitoring Report (January-June 2020) Environmental Monitoring Reports Aug 2020
Natural Gas Infrastructure and Efficiency Improvement Project: Component 1 – Installation of Wellhead Gas Compressors Environmental Safeguard Monitoring Report (January-June 2020) Environmental Monitoring Reports Aug 2020
Natural Gas Infrastructure and Efficiency Improvement Project: Component 2 - Chittagong-Bakhrabad Gas Transmission Pipeline Social Safeguard Monitoring Report (January-June 2020) Social Monitoring Reports Jun 2020
Natural Gas Infrastructure and Efficiency Improvement Project: Component 2 - Chittagong-Bakhrabad Gas Transmission Pipeline Environmental Safeguard Monitoring Report (July-December 2019) Environmental Monitoring Reports Feb 2020
Natural Gas Infrastructure and Efficiency Improvement Project: Component 1 Environmental Monitoring Report (January-December 2019) Environmental Monitoring Reports Feb 2020
Natural Gas Infrastructure and Efficiency Improvement Project: Component 2 - Chittagong-Bakhrabad Gas Transmission Pipeline Social Safeguard Monitoring Report (July-December 2019) Social Monitoring Reports Dec 2019
Natural Gas Infrastructure and Efficiency Improvement Project: Component 2 - Chittagong-Bakhrabad Gas Transmission Pipeline Social Safeguard Monitoring Report (January-June 2019) Social Monitoring Reports Oct 2019
Natural Gas Infrastructure and Efficiency Improvement Project: Component 2 Chittagong-Bakhrabad Gas Transmission Pipeline Social Safeguard Monitoring Report (July-December 2018) Social Monitoring Reports Sep 2019
Natural Gas Infrastructure and Efficiency Improvement Project: Component 2 Chittagong-Bakhrabad Gas Transmission Pipeline Environmental Monitoring Report (January-June 2019) Environmental Monitoring Reports Sep 2019
Natural Gas Infrastructure and Efficiency Improvement Project: Component 2 Chittagong-Bakhrabad Gas Transmission Pipeline Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Aug 2019
Natural Gas Infrastructure and Efficiency Improvement Project: Component 2 - Chittagong-Bakhrabad Gas Transmission Pipeline External Social Safeguard Monitoring Third Progress Report Social Monitoring Reports Jul 2019
Natural Gas Infrastructure and Efficiency Improvement Project: Component 2 - Chittagong-Bakhrabad Gas Transmission Pipeline External Social Safeguard Monitoring Second Progress Report Social Monitoring Reports Jun 2019
Natural Gas Infrastructure and Efficiency Improvement Project: Component 1 Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Feb 2019
Natural Gas Infrastructure and Efficiency Improvement Project: Component 2 - Chittagong-Bakhrabad Gas Transmission Pipeline External Social Safeguard Monitoring First Progress Report Social Monitoring Reports Dec 2018
Natural Gas Infrastructure and Efficiency Improvement Project: Component 2 Chittagong-Bakhrabad Gas Transmission Pipeline Social Safeguard Monitoring Report (January-June 2018) Social Monitoring Reports Oct 2018
Natural Gas Infrastructure and Efficiency Improvement Project: Component 2 Chittagong-Bakhrabad Gas Transmission Pipeline External Social Safeguard Monitoring Inception Report Social Monitoring Reports Sep 2018
Natural Gas Infrastructure and Efficiency Improvement Project: Component 2 Chittagong-Bakhrabad Gas Transmission Pipeline Environmental Monitoring Report (January-June 2018) Environmental Monitoring Reports Sep 2018
Natural Gas Infrastructure and Efficiency Improvement Project: Component 1 Environmental Monitoring Report (January-June 2018) Environmental Monitoring Reports Aug 2018
Natural Gas Infrastructure and Efficiency Improvement Project: Part B Environmental Monitoring Report (January-December 2017) Environmental Monitoring Reports Dec 2017
Natural Gas Infrastructure and Efficiency Improvement Project: Component 1 Environmental Monitoring Report (January-December 2017) Environmental Monitoring Reports Dec 2017
Natural Gas Infrastructure and Efficiency Improvement Project: Component 2 Chittagong-Bakhrabad Gas Transmission Pipeline Initial Environmental Examination Initial Environmental Examination Sep 2016
Natural Gas Infrastructure and Efficiency Improvement Project: Component 1 Titas Gas Field Location "A" Initial Environmental Examination Initial Environmental Examination Sep 2016
Natural Gas Infrastructure and Efficiency Improvement Project: Component 1 Titas Gas Field Location "A" Initial Environmental Examination Initial Environmental Examination Aug 2016
Natural Gas Infrastructure and Efficiency Improvement Project: Component 2 Chittagong-Bakhrabad Gas Transmission Pipeline Initial Environmental Examination Initial Environmental Examination Aug 2016
Natural Gas Infrastructure and Efficiency Improvement Project: Resettlement Plan Resettlement Plans Aug 2016

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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.

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