Govt to Drill Two New Gas Wells at a Cost of Tk592 Crore, Targeting 30 mmcfd

The government plans to invest Tk592 crore in drilling two appraisal-cum-development wells at the Titas Gas Field, aiming to boost domestic gas production by around 30 million cubic feet per day (mmcfd) and reduce reliance on imported liquefied natural gas (LNG).

The project, titled “Drilling of Two Appraisal-cum-Development Wells (Titas-32 and Titas-33) at Titas Gas Field,” will be placed before the Executive Committee of the National Economic Council (ECNEC) for approval at its meeting scheduled for 25 October. Prime Minister Tarique Rahman, who chairs ECNEC, is expected to preside over the meeting at the Bangladesh Secretariat.

Bangladesh Gas Fields Company Limited (BGFCL), a subsidiary of Petrobangla, will implement the project under the Energy and Mineral Resources Division of the Ministry of Power, Energy and Mineral Resources. The project is scheduled to run from October 2026 to September 2029, according to a Petrobangla official.

Of the estimated Tk592 crore cost, Tk414.40 crore will come from government funding, while BGFCL will contribute Tk177.60 crore from its own resources.

Speaking to BSS, Petrobangla Chairman Abdul Mannan said the two wells are expected to produce around 30 mmcfd of gas, alongside condensate.

He said the additional output would strengthen supplies to the national gas grid and help reduce dependence on imported LNG. The government is accelerating domestic exploration as part of its broader plan to increase local gas production.

According to Mannan, the government aims to drill 150 gas wells by 2031, followed by another 150 between 2031 and 2035 to further strengthen the country's domestic gas supply.

The project proposal estimates that the two wells could produce approximately 100.74 billion cubic feet (BCF) of gas and 60,444 barrels of condensate over 10 years.

At BGFCL's existing wellhead prices, the estimated value of the output is Tk339.07 crore, comprising Tk285.26 crore worth of gas and Tk53.81 crore worth of condensate. At consumer-level gas prices, the estimated value of gas production over the same period would reach Tk6,523.97 crore.

BGFCL currently supplies around 480–485 million cubic feet of gas per day to the national grid from five of its six operational gas fields. The Titas Gas Field, the company's largest, produces approximately 330 million cubic feet daily through 23 of its 28 drilled wells.

The proposed project follows a review of three-dimensional seismic survey data collected at the Titas and Bakhrabad gas fields between 2010 and 2012.

BGFCL commissioned BGP Inc., a subsidiary of China National Petroleum Corporation, to assess the data. The consultant recommended drilling 16 infill wells and seven deep wells to enhance production.

The government subsequently prioritised Titas-32 and Titas-33 under its broader initiative to drill 150 onshore gas wells to increase domestic output.

The project will involve drilling the two wells through a foreign contractor, hiring local and international consultants, installing gas-gathering pipelines and completing associated infrastructure work.

The Infrastructure Investment Facilitation Company (IIFC) conducted the feasibility study in 2026. According to the Planning Commission, the project is expected to support domestic gas production, promote industrial development and save foreign currency by reducing LNG imports.

The proposal was revised after a Project Evaluation Committee meeting on 18 June 2026 recommended a review of project costs. As a result, the estimated expenditure was reduced by Tk40 crore, from the initial Tk632 crore to Tk592 crore.