Country’s recoverable (proven and probable) supply of natural gas has come down to 9.02 percent push to major import dependency of the fossil fuel in 2029.
It was disclosed by the state-owned Petrobangla (Bangladesh Oil, Gas & Mineral Corporation) at a seminar ‘Gas Demand-Supply Scenario; Scope of Seismic Survey and Enhancement of Drilling Activities to Expedite Hydrocarbon Production at Petrocentre on Thursday.”
State Minister for Power and Energy Nasrul Hamid, Energy and Mineral Resources Division secretary Md Nurul Alam and Petrobangla chairman Zanendra Nath Sarker attended.
On the keynote paper, jointly presented by Bakhrabad Gas Distribution Company Ltd managing director Md Anwarul Islam and Petrobangla general manager Meharul Hasan, said currently three state-owned gas fields-BGFCL, SGFCL and BAPEX- and two international oil companies- Chevron Bangladesh and Tullow- have been produced gas from 29 gas fields in the country’s.
According to latest estimate, total Gas Initial in Place (GIIP) is 38.21 trillion cubic feet (TCF). Out of which 29.74 is recoverable. “Total 20.27 TCF gas produced leaving 9.02 TCF recoverable,” said Bakhrabad Gas Distribution Company Ltd managing director Md Anwarul Islam and Petrobangla general manager Meharul Hasan in the keynote.
The Petrobangla officials said Bangladesh has been importing LNG significantly as the demand for natural gas has surpassed indigenous production.
Since the early 1960s, indigenous natural gas has played a vital role in the economy of Bangladesh.
In 1975, Father of the Nation Bangabandhu Sheikh Mujibur Rahman, laid the foundation for the country’s energy security by acquiring five gas fields from Shell Oil at anominal price.
These fields have been the backbone of the country’s development for decades due to natural gas’s versatility and affordability, making it the principal fuel source, the speakers said.
Despite the country’s slow diversification of its energy mix, indigenous natural gas still accounts for approximately 41 percent of the country’s total primary energy and 54 percent of its total commercial energy. Natural gas is primarily used for electricity generation, industries, and fertilizer production, with 52 percent of total electricity production in FY 2022-23 coming from gas-based power plants.
Additionally, natural gas is also utilized in transportation, the domestic sector, and commercial purposes.
According to petrobangla demand supply projection, the natural gas demand in power, captive power and industry sector have increased gradually in the recent years, and this increasing trend is deemed to increase in the future.
According to the gas demand projection prepared by an in-house committee of Petrobangla and its Companies in July 2023, in 2023-24, 2024-25, 2029-30, 2034-35 and 2040-41 total gas demand will increase to 4734, 4956, 6655, 7399 and7758mmcfd respectively.
If the Petrobangla will not get any major discovery of natural gas, then the imported gas will meet more than half of the demand for natural gas, according to Petrobangla officials data showed.
Attended at the seminar as chief guest, state minister for power and energy Nasrul Hamid said the power subsidy may be come down to 70 percent subject to get sufficient supply in power plants.
Now the demand for gas to power plants over 2000mmcfd against the supply of 1100mmcfd-1200mmcfd, according to him.
The recoverable reserve of natural gas will decline in next two to three years and then it will increase, he expected.
Energy and Mineral Resources Division secretary Md Nurul Alam has sought opinion from energy experts for pricing formula as country comes under major import dependent of natural gas in coming years.
Petrobangla chairman Zanendra Nath Sarker said his corporation will drill 100 wells by 2028 to ease the import dependency of natural gas some extent.
He added Bangladesh will invite tender on oil and gas exploration in the Bay of Bengal soon.
