SAN RAMON -- Chevron will proceed with expansion of a natural gas field in northwestern Bangladesh, the energy giant said.

Chevron will spend $500 million to expand the Bibiyana gas project.

The new project will include expansion of the gas plant to process increased natural gas volumes from the Bibiyana Field, additional development wells, and an enhanced gas liquids recovery unit.

The project is expected to boost Chevron's total natural gas production capacity in Bangladesh by more than 300 million cubic feet per day to 1.4 billion cubic feet per day, and 4,000 barrels per day of natural gas liquids.

First production is expected in 2014, San Ramon-based Chevron estimated.

Contact George Avalos at 925-977-8477. Follow him at twitter.com/george_avalos.