In an effort to address the pressing gas shortage in Bangladesh, the government has launched a sweeping initiative aimed at boosting local gas production. Not only are authorities actively exploring additional gas sources, but there’s also contemplation about extending gas supply to residential areas, contingent on the discovery of more gas reservoirs.
Leaping into uncharted waters, the approval of the ‘Offshore Model Production Sharing Contract’ (PSC) signals a forward-looking approach. This contract, greenlit for oil and gas exploration in both deep and shallow seas, underscores the government’s commitment to diversifying exploration methods.
This comprehensive approach, involving both onshore and offshore strategies, reflects the government’s dedication to securing a sustainable and robust gas supply for the nation. As the nation grapples with the immediate challenges, these initiatives stand as a testament to a visionary blueprint for a more gas-abundant future.
The Current Situation
According to the Ministry of Power, Energy and Mineral Resources, the Avg. Gas Production/day is 2978 MMcfd, while the present demand per day is 3508 MMcfd; leaving a deficit of 530MMcfd. Currently grappling with this deficit, Bangladesh is navigating this challenge with strategic measures to enhance gas production from domestic outlets. As a pivotal step in this strategy, the forthcoming financial year of
In the upcoming years of 2024-25, a significant drilling endeavor is set to unfold, targeting a total of 49 wells. This ambitious initiative will further escalate, aiming to identify a remarkable 100 wells during the subsequent years of 2026-28. Aligned with the overarching goals of Vision 2021 and the Sustainable Development Goals (SDGs), the Government is steadfast in its commitment to secure access to affordable, reliable, sustainable, and modern energy for everyone by 2030, while also minimizing the demand-supply gap.
Plans for Future Energy Security
In a strategic move, the Government has undertaken measures not only to bolster domestic production but also to bridge the energy deficit through significant imports of liquefied natural gas (LNG). In pursuit of this, the Government has recently inked two separate Terminal Use Agreements (TUA) with key players in the energy sector—Excelerate Energy Bangladesh Limited (EEBL) and Summit LNG Terminal Co. (Pvt.) Ltd. These agreements pave the way for the installation of two Floating Storage and Regasification Units (FSRU) at Moheshkhali, situated approximately 90 kilometers south of Chattogram. The envisioned outcome is the supply of an impressive 500 MMscfd of Regasified Liquefied Natural Gas (RLNG) from each unit.
Expert Opinion
(Prime Minister Sheikh Hasina Gold Medalist)
Assistant Professor, Department of Economics,
European University of Bangladesh
“How crucial is Energy Security for Bangladesh? Why is it imperative”?
Bangladesh’s overall well-being, economic progress, poverty reduction, and sustainable development all depend on energy security. To provide a stable and secure energy supply for its expanding population, the nation must handle its energy concerns by enhancing infrastructure, promoting regional collaboration, and investing in a variety of sustainable energy sources.
Parallelly, Petrobangla has engaged in a joint venture with Tokyo Gas Engineering Solutions Corporation (TGES) and Nippon Koei Co. (NK), both from Japan. This partnership is geared towards conducting a comprehensive techno-economic feasibility study, providing engineering services, and managing tenders for the construction of a land-based LNG terminal at Matarbari in Cox’s Bazar. The planned terminal is designed to have the capacity to handle 7.5 million metric tons per annum (MTPA) of LNG, equivalent to 1,000 MMscfd of RLNG.
The progress is palpable, with the completion of a feasibility study for the Matarbari-based LNG terminal. A Request for Proposal (RFP) is now in the pipeline, poised to be issued to the shortlisted terminal developers, marking a significant stride in Bangladesh’s journey towards a robust and diversified energy landscape.
Future Energy Recommendations
It’s emphasized that a substantial amount of gas remains undiscovered. The revelation comes in the wake of a mere 28 exploratory wells drilled by authorities over the last two decades—an evidently limited number for a nation boasting high hydrocarbon potential. The ratio of discovering gas in every three wells drilled is noteworthy, especially when compared to the global average of five.
Drawing attention to an underutilized resource, there are at least 40 abandoned wells that hold the promise of contributing to the country’s gas production. The proposition is clear: through strategic investments in overhauling these dormant wells, the nation could not only unlock new sources of gas but also yield significant cost savings by reducing reliance on LNG imports.
This insight underscores the critical importance of maximizing domestic resources and leveraging existing infrastructure to bolster energy self-sufficiency. As discussions around energy security continue, the potential revival of abandoned wells emerges as a pragmatic solution, aligning with both economic and environmental imperatives.
Conclusion
Bangladesh’s ambitions to ensure energy security are commendable. With a high hydrocarbon potential, Bangladesh has the potential not only to secure its energy demands for the future but also potentially attain energy independence should enough resources be invested in exploration, survey, and overhaul. A comprehensive plan, therefore, is critical to ensure the future competitiveness of the nation as well as reduce the dependence on imports.
