Bangladesh could face a major natural gas crisis during the upcoming dry season, as slow approvals for well-drilling projects continue to delay new gas output, a senior official warns.
“We planned to drill 50 wells to produce an additional 600 mmcfd of natural gas by the end of 2025,” said Petrobangla Chairman Zanendra Nath Sarkar. “But the delay in project approvals may extend the gas crisis.”
Petrobangla recently proposed 20 exploratory, development, and work-over wells from August to October 2024 at a cost of Tk 61.21 billion. Among these, the Rashidpur-11 exploratory well was submitted for review in early September, but final approvals remain pending.
Although Petrobangla scheduled tender invitations for October 22, 2024, delays have pushed these back, potentially impacting energy supplies.
The proposed drilling includes major projects at Dupitila-1 and Kailastila-9, estimated to cost Tk 646.48 crore, but these projects are also awaiting planning approval.
Bureaucratic bottlenecks are further delaying tenders for two deep wells at Titas and Bakhrabad, and exploratory wells at Srikail Deep-1, Mobarakpur Deep-1, and Fenchuganj South-1, according to an official from the energy division.
Additionally, drilling at Shahbazpur-5, Bhola North-3, and other critical wells has been stalled. A decision to cancel all projects under the special power act has been considered, although Russian energy company Gazprom is reportedly lobbying to proceed with drilling through a costly contract of Tk 1864.46 crore, bypassing the standard tender process.
Due to prolonged delays, Bangladesh has increased costly LNG imports. The government signed a 15-year contract with Qatargas and QatarEnergy to purchase 360 cargoes at Tk 1,351.68 billion, based on Brent crude prices.
The Petrobangla chairman, however, said the country is receiving 190mmcfd output from only 16 wells drilled out of 50 so far.
Local gas reserves, estimated at 8.66 trillion cubic feet (tcf) from 29 fields, are projected to last less than seven years without significant new discoveries, posing a serious threat to industrial productivity and economic stability.
The country’s supply currently stands at only 2,561 mmcfd against a demand of 4,000 mmcfd, as local production continues to fall. Petrobangla’s plan to drill 100 onshore wells between 2025 and 2029, at a projected cost of Tk 190.5 billion, is expected to yield an additional 500 mmcfd by 2029, though experts caution that existing field depletion will strain supply.
Offshore exploration remains vital, with a new bidding round for foreign investment now planned for January 2025. Muhammad Fouzul Kabir Khan, Adviser on Power, Energy, Rail, Road Transport, and Bridges, stated that the government is considering both onshore and offshore opportunities to address the looming energy crisis.
