Gas Output from Bangladesh's Sangu Gas Field Drops

Gas production from Santos operated offshore Sangu gas field fell by 16.66 per cent to around 25 million cubic feet per day (mmcfd) from the initial output of 30 mmcfd.

Financial Express reported that output drop was because of decline in demand.

Santos’ president in Bangladesh John Chambers told Financial Express that gas output from the field varies as per customer's requirement. He added that the company is ready to supply as high as 30 mmcfd of natural gas Bangladesh Power Development Board (BPDB) from Sangu-II, the country's only operating offshore gas field in the Bay of Bengal.

Santos has inked a deal with BPDB in early June to sell Sangu-II gas from block 16 at market price.  It has been supplying Sangu-II gas to BPDB since June 17, 2012.

This is first time in Bangladesh that an international company has been selling natural gas to an end-user at the market price, the newspaper said.

Santos signed a gas purchase and sales agreement with BPDB to sell new gas from the offshore Sangu-II well at $4.50 per Mcf (1,000 cubic feet), 55 per cent higher than the previous rate of $2.90 per Mcf from the older Sangu well.