The government is set to approve a Tk1,555 crore project to drill five gas wells in the Bhola region in a bid to address Bangladesh’s deepening energy crisis.

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

This initiative, spearheaded by Bangladesh Petroleum Exploration and Production Company Limited (BAPEX), is part of the government’s broader effort to ramp up domestic gas production and reduce the country's costly dependence on imported liquefied natural gas (LNG).

An official of the Planning Commission said that the proposed gas well drilling initiative is a strategic response to the country’s declining domestic gas reserves.

He emphasised that the decision was backed by comprehensive analysis of seismic and geological data gathered by BAPEX, ensuring a data-driven approach to energy exploration.

The official added that, once approved by ECNEC, the project will not only enhance domestic gas production but also reduce the nation’s dependency on costly LNG imports, ultimately strengthening Bangladesh’s energy security and economic stability.

According to Planning Commission sources, the proposed wells – Shahbazpur-5, Shahbazpur-6, Bhola North-3, Bhola North-4, and Shahbazpur North-East-1 – will be drilled to a depth of approximately 3,500 to 3,600 metres. The project aims to uncover up to 300 billion cubic feet (BCF) of recoverable gas reserves.

Of the total cost, Tk1,244.8 crore will be funded through government loans, while BAPEX will contribute Tk310.86 crore from its own resources. If approved, implementation will begin in the current 2025-26 fiscal year (FY26) and the project will be completed by June 2028.

A race against time

The urgency stems from Bangladesh’s rapidly depleting gas reserves.

According to Petrobangla, domestic production has declined by over 33% since 2017, falling from 2,700 million cubic feet per day (mmcfd) to 1,800 mmcfd in 2025.

Current estimates suggest only around eight trillion cubic feet (TCF) of recoverable gas remains – enough to meet demand for just eight to 11 years at present consumption rates unless new discoveries are made.

Bangladesh began importing LNG in 2018 and has since grown increasingly reliant on volatile global markets. The shock was most severe in 2022, when LNG prices surged to US$60 per MMBtu due to the Russia-Ukraine war, straining foreign reserves and fueling inflation and energy price hikes.

Reducing import dependency

Gas imported from abroad costs up to 18 times more than domestically produced gas – Tk55 per cubic meter versus just Tk3.

Experts and industry leaders say this price gap has devastated the economy and manufacturing competitiveness.

Fazlul Haque, former president of Bangladesh Knitwear Manufacturers and Exporters Association, stressed recently, “We need reliable and affordable energy to remain competitive. Domestic production is the only sustainable solution.”

What’s being done

The new ECNEC-bound project is part of a multi-phase national gas development strategy, under which BAPEX plans to drill up to 20 new wells, including the five in Bhola.

Additionally, 50 wells are currently in progress, with another 100 wells planned over the coming years. These include exploration, development, and re-drilling of old wells to boost output.

Petrobangla Chairman Md Rezanur Rahman noted that although short-term gas production gains are difficult, new wells are expected to start producing gas as early as November, with consistent monthly additions to the grid thereafter.

Energy expert Prof Ijaz Hossain said that Bangladesh’s LNG import capacity, currently capped at 1,100 mmcfd, is inadequate to meet growing demand.

“Continued over-reliance on imports is not fiscally sustainable,” he warned, urging the government to prioritise exploration over imports given the fragile state of foreign reserves.