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GAIL to Monetize Stranded Gas in Bangladesh

Mumbai, September 12, 2005

GAIL has offered to assist Petrobangla (Bangladesh Oil, Gas and Minerals Corporation) for monetization of stranded gas from Kutubdia offshore gas field located in South East Bangladesh. 

The issue was discussed at the meetings between GAIL and Petrobangla, a state owned hydrocarbon, company in Bangladesh held during the recent visit of Shri Proshanto Banerjee, Chairman and Managing Director, GAIL to Dhaka. Shri Banerjee accompanied the Hon’ble Minister of Petroleum & Natural Gas and Panchayati Raj who visited Bangladesh recently to hold discussions on Myanmar - Bangladesh - India Gas Pipeline. 

The gas reserves in the Kutubdia offshore gas field are not sufficient enough to have commercially viable dedicated pipeline system to bring the gas from the field to market. Apart from transporting gas in compressed form in cascades, the other options, which may be considered for monetization of stranded gas, include CNG marine transportation by ships and installing Gas Turbine for power generation. The power thus generated could subsequently be transmitted by laying sub-sea cables. 

GAIL has offered to provide full support and consultancy services to Petrobangla for examining these options for monetization of stranded gas from Kutubdia gas field. 

GAIL has already completed a Pre-Feasibility Study for transportation of gas in the form of CNG by ship using VOTRANS (Volume Optimised Transportation and Storage) technology of EnerSea, USA in February, 2005. GAIL is now in the process of carrying out detailed techno-commercial feasibility study for transportation of gas using VOTRANS technology.

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