The interim government launched three new projects on Sunday worth nearly Tk1,965 crore for domestic gas and oil exploration, aiming to ease energy import pressure amid rising demand.
Due to an inconsistent power supply, local factories have become heavily reliant on gas, increasing both gas demand and import pressure against declining domestic production.
Over the past six years, gas demand has doubled across all sectors, including power generation, fertiliser production, industries, and residential use.
Instead of prioritising domestic exploration, the previous Awami League government focused on imports to bridge the supply gap. However, amid the current economic crisis, the interim government is now emphasising natural gas and oil extraction.
The approvals for the three new projects came during an Executive Committee of the National Economic Council (Ecnec) meeting at the Planning Commission, chaired by Chief Adviser Mohammad Yunus.
Previously, Ecnec approved one project in its last meeting. On 19 December, three projects were approved, while an earlier meeting cleared two new projects and one revised project. The Ministry of Power, Energy, and Mineral Resources has also submitted two additional projects for review.
The Bangladesh Gas Fields Company Ltd (BGFCL) will spend Tk1,255 crore on one of the newly approved projects to drill four evaluation-cum-development wells in the Titas and Kamta fields. The government will fund Tk872 crore, while Tk382 crore will come from BAPEX’s own funds. The project is set for implementation from January 2025 to September 2027.
A separate project worth Tk454 crore will fund a 3D seismic survey in the Habiganj, Bakhrabad, and Meghna gas fields, scheduled from January 2025 to June 2027.
Additionally, Sylhet Gas Fields Ltd will drill a well to extract fuel oil from the Sylhet-12 gas field under a Tk255 crore project.
“The government is prioritising natural gas extraction to reduce energy import costs. Two projects have been approved at the Ecnec meeting, with several others under review,” said a senior Planning Commission official.
Ecnec also approved revised cost escalations for two ongoing Bangladesh Power Development Board (BPDB) projects. The Gorashal Fourth Unit Repowering (3rd Revision) project saw a Tk96 crore cost hike, while the second phase of the Power Distribution System Development project in the Chattogram zone saw a Tk164 crore increase.
In total, Ecnec approved 12 projects at a combined cost of Tk12,532 crore, including a Tk4,068 crore scheme to upgrade Mongla Port by enhancing its facilities.
