Chevron to invest $500 mln to raise Bangladesh gas output

SINGAPORE, July 30 (Reuters) - Chevron Corp will invest about $500 million to raise its natural gas production in Bangladesh by more than a quarter in 2014 to meet rising local demand, the company said on Monday.

With the investment, Chevron will remain the largest natural gas producer in Bangladesh, which currently faces up to 500 million cubic feet a day (mmcfd) of gas shortages.

Chevron will expand a plant to process more natural gas from the Bibiyana field, drill additional development wells and build an enhanced gas liquids recovery unit, the company said in a statement.

The project, when completed in 2014, will boost Chevron's total natural gas production capacity in Bangladesh by more than 300 mmcfd to 1.4 billion cubic feet per day while its condensate output will rise by 4,000 barrels per day, the company said.

Chevron has urged the Bangladesh government to upgrade its national pipeline network so that it can deliver more gas.