Bangladesh is moving forward with a significant Tk 1,136.25 crore (approximately $102 million) project aimed at aggressively boosting its indigenous natural gas production to meet burgeoning energy demands.

The Executive Committee of the National Economic Council (ECNEC) recently approved the initiative, which will see the drilling of three crucial new exploration wells by the state-owned Bangladesh Petroleum Exploration and Production Company Limited (BAPEX).

Key Drilling Locations

The project, titled “Drilling of Three Exploration Wells (Srikail Deep-1, Mobarakpur Deep-1 and Fenchuganj South-1),” is scheduled for completion by December 2027. The wells are located across three key regions:

• Srikail Deep-1
• Mobarakpur Deep-1
• Fenchuganj South-1

The Srikail and Mobarakpur wells will be drilled to a depth of 6,000 metres, while the Fenchuganj well will reach 4,000 metres.

Strategic Long-Term Focus

The funding for the project is primarily government-backed, providing Tk 909 crore via a loan, with BAPEX contributing the remaining Tk 227.25 crore from its own resources.

Planning Adviser Dr Wahiduddin Mahmud emphasised the necessity of this long-term investment, acknowledging that gas cannot be discovered instantly, but that inaction would guarantee future shortages.

“The real issue is that in the last 15 years almost no new wells were drilled, and BAPEX was not strengthened,” Dr. Mahmud noted following the ECNEC meeting. “For the first time, we are strengthening BAPEX by financing the purchase of necessary equipment... This is part of a long-term approach.”

Potential Impact on Energy Security

The locations were chosen based on extensive 3D seismic survey data and geological analysis by BAPEX, which indicate a strong likelihood of significant gas deposits.

If commercially viable gas is struck, the total Gas Initially in Place (GIIP) across the three wells is estimated at 1,696.36 billion cubic feet (BCF). Of this, policymakers estimate that over 1,018 BCF could be recoverable, which would play a “critical role” in enhancing Bangladesh’s long-term energy security and reducing its increasing reliance on costly imported Liquefied Natural Gas (LNG).

Energy sector analysts have welcomed the move as timely, given the rising pressure on the national gas grid driven by industrial expansion and growing power generation needs. The success of this exploration drive is also expected to encourage greater private and international investment in Bangladesh’s energy sector.