Government To Approve Tk1,555cr Project To Drill Five Gas Wells In Bhola

The government is poised to approve a Tk1,555 crore project to drill five new gas wells in Bhola as part of efforts to ease Bangladesh’s mounting energy crisis.

The initiative, which includes four appraisal-cum-development wells and one exploratory well, is expected to be cleared at Wednesday’s meeting of the Executive Committee of the National Economic Council (ECNEC), chaired by Chief Adviser Prof Muhammad Yunus at the NEC Conference Room in Sher-e-Bangla Nagar.

Spearheaded by Bangladesh Petroleum Exploration and Production Company Limited (BAPEX), the project is aimed at boosting domestic gas output and reducing the country’s heavy reliance on expensive imported liquefied natural gas (LNG).

A Planning Commission official told the Daily Sun that the plan represents a strategic response to dwindling local reserves. He noted that the decision is based on detailed seismic and geological data collected by BAPEX, ensuring a scientifically grounded approach to exploration.

Once approved, the project is expected to enhance production capacity, cut import dependency, and reinforce both energy security and economic resilience.

According to commission sources, the targeted wells—Shahbazpur-5, Shahbazpur-6, Bhola North-3, Bhola North-4, and Shahbazpur North-East-1—will be drilled to depths of around 3,500 to 3,600 metres. The project aims to uncover up to 300 billion cubic feet (BCF) of recoverable reserves.

Of the total cost, Tk1,244.8 crore will come from government loans, while BAPEX will invest Tk310.86 crore from its own funds. Work is scheduled to start in FY26, with completion expected by June 2028.

A race against time

Bangladesh’s gas reserves are being depleted at an alarming rate. Petrobangla data shows that domestic output has dropped more than 33% since 2017—from 2,700 million cubic feet per day (mmcfd) to 1,800 mmcfd in 2025.

Estimates suggest only about eight trillion cubic feet (TCF) of recoverable gas remains—sufficient for just 8–11 years at current consumption levels unless new reserves are discovered.

Bangladesh began importing LNG in 2018, but reliance on volatile global markets has proved risky. In 2022, the Russia-Ukraine war pushed LNG prices as high as US$60 per MMBtu, straining reserves, stoking inflation, and forcing up domestic energy costs.

The cost gap

Imported LNG costs up to 18 times more than locally produced gas—Tk55 per cubic metre compared to just Tk3.

“This price gap has hammered the economy and weakened manufacturing competitiveness,” said Fazlul Haque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association. “Reliable, affordable energy through domestic production is the only sustainable solution.”

What’s being done

The Bhola project is part of a broader multi-phase gas development plan. BAPEX aims to drill around 20 new wells, including the five in Bhola, while 50 are already under way and 100 more are planned in the coming years. These include exploration, development, and re-drilling of older wells to raise output.

Petrobangla Chairman Md Rezanur Rahman noted that while immediate output gains are difficult, fresh wells could start supplying gas as early as November, with steady monthly additions thereafter.

Energy expert Prof Ijaz Hossain cautioned that Bangladesh’s LNG import capacity, capped at 1,100 mmcfd, is already insufficient to meet demand. “Over-reliance on imports is fiscally unsustainable,” he warned, urging the government to prioritise domestic exploration over foreign purchases.