February 11, 2025, 7:08 am

Petrobangla accelerates local gas production process to reduce LNG dependency

  • Update Time : Monday, February 10, 2025
  • 2 Time View
Photo: Collected


Staff Correspondent:



In a bid to reduce reliance on imported liquefied natural gas (LNG), Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) is expediting the tender process for drilling 21 wells across various gas fields.

According to official sources, 21 out of the proposed 26 wells are either at the awarding stage or undergoing tendering.

The remaining five will soon be tendered for drilling, they said.

The initiative follows an energy ministry plan announced on 3 October last year by Power and Energy Adviser Dr Muhammad Fouzul Kabir Khan.

He had declared that open tenders would be invited for the drilling of 26 wells to enhance domestic gas production and lessen dependency on expensive LNG imports.

Dr Khan said that no contracts would be awarded on a government-to-government (G-to-G) or unsolicited basis.

He said revealed that a total of 100 wells are set to be drilled between 2025 and 2028, comprising 69 for exploration and development and 31 for workover operations.

Of these, the Bangladesh Petroleum Exploration and Production Company Limited (Bapex) will drill 43 wells—33 using its own rigs and 10 with rented rigs—while the remaining 26 will be handled by contractors through open tendering.

Under Petrobangla’s directive, three subsidiaries—Bapex, Bangladesh Gas Fields Company Limited (BGFCL), and Sylhet Gas Fields Limited (SGFL)—are overseeing the drilling activities.

BGFCL has already issued Notifications of Award (NoA) for six wells, namely Sylhet 10 Extension, Sylhet-4, Dupitila-1, Rashidpur-11, Rashidpur-13, and Kailashtila-9. Additionally, BGFCL has taken over five more wells for workover drilling.

Meanwhile, Bapex has floated tenders for five wells in the Bhola gas fields, including Shahbazpur-5, Shahbazpur-7, Shahbazpur North East-1, Bhola North-3, and Bhola North-4.

The company has also completed the tender process for three additional wells.

The previous Awami League government had initially decided to award contracts to the Russian company Gazprom without tender under the Speedy Increase of Power and Energy Supply (Special Provision) Act 2010.

The interim government repealed the act and cancelled the decision to engage Gazprom.

Bapex Managing Director Md Shoyeb stated that the tender process is expected to conclude within the next two to three months, with drilling operations anticipated to commence by June this year. “We hope the country will gain approximately 100 million cubic feet of gas per day (mmcfd).

SGFL officials noted that they have also floated tenders for several wells to further ramp up domestic gas production.

Sources from all three companies indicated that around 10 additional tender offers are under evaluation, with contract awards expected soon.

Energy ministry officials highlighted that Bangladesh currently imports approximately 1,000-1,100 mmcfd of gas to meet daily demand, which is projected to double by 2026.

If the government’s drilling plan is successfully implemented, it could increase local gas production by at least 500 mmcfd, significantly reducing the need for LNG imports.

 

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