Petrobangla Chairman Engineer Rezanur Rahman has said that the government is giving the highest priority to setting up a land-based LNG terminal, which he claims is significantly more cost-effective than the existing floating terminals. He added that visible progress on this project will be seen soon.
He made the remarks while responding to a journalist’s query at a seminar titled “Energy Security of the Country: Challenges and Way Forward: The Role of Media”, held at Petrobangla’s Petrocentre on Tuesday.
The event was attended by members of the Forum for Energy Reporters Bangladesh (FERB).
The Petrobangla chief stated, “Just yesterday (July 28), we held a meeting with the Adviser of the Ministry of Shipping regarding land allocation for the land-based LNG terminal having capacity to process 1000MMbtu and an LPG bottling plant.
A final decision will be made in an upcoming meeting, and progress will be visible shortly. However, the process does take time.” The Power and Energy Adviser Dr Muhammad Fouzul Kabir Khan also attended at the Monday’s meeting.
He noted that international LNG prices are currently low but are expected to spike during the upcoming European winter. “Had we already built the land-based terminal, we could have procured LNG now at lower prices and stored it, saving significantly during the winter when prices are expected to rise. Everyone wants to ensure cost efficiency,” he added.
In response to another question, the chairman said that the government has decided to discourage gas supply to captive power plants. “We will not approve gas connections for any new captive power project above 10 MW. The aim is to gradually phase out existing captive usage.”
Addressing complaints of delays and irregularities in industrial gas connections, he clarified that industries have been categorised into three groups. “Those ready for immediate production upon receiving gas will be prioritised for connections. A committee, based on lists from various distribution companies, is conducting site visits to finalise decisions. Some visits have already been completed. There will be no special treatment. New applicants will undergo economic feasibility assessments before final approval.”
On domestic gas exploration and production, the Petrobangla Chairman said, “We have intensified our efforts. In addition to the 50-well drilling project, the 100-well drilling programme is progressing rapidly. We expect a significant increase in domestic gas output through these initiatives.”
Engineer Rafiqul Islam, Director (Operations and Mines) at Petrobangla, elaborated that under the 100-well project, 69 exploration and development wells will be drilled, potentially adding 985 million cubic feet of gas per day. “Another 400–500 million cubic feet may come from 31 well workovers. Nineteen wells have been prioritised and are expected to add 277 million cubic feet of daily production by 2026.”
Chairman Rezanur Rahman further revealed that two new drilling rigs are being procured to accelerate drilling activities. “One proposal will be placed before ECNEC shortly, while the feasibility study for the second rig is ongoing. We’ve also instructed the completion of a seismic survey for the entire Bhola district by December, which we hope will lead to new discoveries.”
On issues related to system loss and illegal gas connections, he said: “We’ve set reduction targets for each distribution company. Four dedicated executive magistrates are conducting daily drives to remove illegal connections, and we are already seeing positive results. However, we also need support from consumers and journalists. If you provide us with specific information, we’ll act swiftly.”
He added, “At the end of the day, I too am a consumer of Petrobangla’s services. We must ensure transparency, accountability, and service quality.”
Petrobangla Director (Finance) Md. Mizanur Rahman noted that since April, Petrobangla has cleared all outstanding dues to suppliers, increasing trust in the organisation. “In FY 2024–25, our business volume stood at Tk 54,000 crore, of which Tk 27,000 crore remains as receivables, mainly from power and fertiliser plants. We are working to reduce this backlog to Tk 15,000 crore. Currently, there is a Tk 4.60 per cubic metre gap between purchase and sale prices. We must gradually rationalise this to reduce subsidy pressure.”
Petrobangla Director (Production Sharing Contract) Md Shoyeb informed that Petrobangla has submitted a proposal to the ministry seeking approval to invite a bidding round for onshore blocks.
Energy expert Dr. Ijaz Hossain, presenting the keynote paper, remarked, “Our failure to pursue adequate gas exploration has led to the present crisis. Production is declining daily. A serious incident could occur anytime. Unless drilling increases significantly, we’ll be forced to rely more on imports. Focus must also shift to deep-sea exploration.”
The seminar was also attended by Petrobangla Directors Abdul Mannan Patwary and Altaf Hossain (Administration), FERB Chairman Shamim Jahangir, and senior officials from Petrobangla and various gas distribution companies.