The government on Tuesday approved a major energy sector proposal to strengthen domestic gas exploration, alongside clearing several large power distribution projects aimed at upgrading the electricity network in the Dhaka–Mymensingh region.
The approvals came at the 51st meeting of the Advisers Council Committee on Government Purchase held at the Cabinet Division Conference Room in the Bangladesh Secretariat, with Finance Adviser Dr Salehuddin Ahmed presiding.
Under the Energy and Mineral Resources Division, the committee approved a proposal to drill new gas wells in Bhola to boost local production and enhance long-term energy security. The project includes drilling four appraisal-cum-development wells—Shahbazpur-5, Shahbazpur-7, Bhola North-3 and Bhola North-4—along with one exploration well, Shahbazpur North East-1.
The wells will be drilled through an international tender using a one-stage, two-envelope procurement method on a turnkey basis. The total estimated cost of the project is Tk 907.29 crore. Following technical and financial evaluation, China’s Sinopec International Petroleum Service Corporation was recommended as the responsive bidder.
Officials said the initiative would help raise domestic gas output, reduce reliance on imported fuel and ensure a more stable supply of natural gas for power generation, industry and other economic activities.
In the same meeting, the committee reviewed and approved four major procurement proposals under a revised project titled Modernisation and Capacity Enhancement of BPDB Power Distribution System (Dhaka–Mymensingh Division), aimed at improving grid reliability, reducing system losses and enhancing service quality.
Under Package MCEP/BREB/DMD-W-4, two lots were approved for the construction and augmentation of 12 air-insulated 33/11 kV substations on a turnkey basis. Lot-1 covers six substations at a cost of Tk 130 crore, while Lot-2 includes another six substations costing Tk 113.82 crore. Ideal Electrical Enterprise Ltd was recommended for both lots.
Another two proposals were approved under Package MCEP/BREB/DMD-W-5 for the construction and augmentation of 14 gas-insulated 33/11 kV substations. Lot-1, involving seven substations, was estimated at Tk 220.90 crore, while Lot-2, covering another seven substations, was estimated at Tk 207.91 crore. Ideal Electrical Enterprise Ltd was also selected for these works.
The committee noted that the power distribution projects would help meet rising electricity demand and ensure a more reliable and efficient power supply across the Dhaka–Mymensingh division.
Officials said the combined approvals underscore the government’s continued focus on strengthening the energy sector by expanding domestic gas exploration and modernising critical power infrastructure.