Bangladesh Drills 32 Gas Wells in Seven Months, Adds 148 mmcfd to Gas Grid
In the seven months since the BNP government took office, 32 gas wells have been drilled to completion, adding about 148 mmcfd to the national grid. But around 60 mmcfd of additional gas from the new wells is still not being fully utilised due to pipeline constraints that prevent it from reaching the national grid.
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In a Nutshell
- Bangladesh has completed 32 gas wells in the seven months since the BNP government took office, adding around 148 mmcfd to the national grid.
- The government plans to drill 150 wells by 2031 and another 150 between 2031 and 2035.
- Of the 32 completed wells, 14 were drilled by SGFL, 11 by BAPEX and seven by BGFCL.
- The wells were projected to produce 134.4 mmcfd, but actual supply has exceeded the projection, with Habiganj-5 yielding around 147.9 mmcfd.
- At the same time, gas supply from the completed wells is not being used to its full potential. Around 60 mmcfd of additional supply is currently held back due to pipeline constraints.
- Seven more wells are under drilling and are expected to be completed by January, with potential production of around 96 mmcfd.
- Nineteen projects are ongoing, covering 31 wells, while another nine projects are awaiting approval.
- Petrobangla also plans to drill four additional wells.
- Petrobangla Chairman Md Abdul Mannan said the government is focusing on new wells and workovers while developing the infrastructure needed to bring additional gas into the grid.
Context
Bangladesh currently produces around 2,600 mmcfd against a demand of about 3,800 mmcfd, leaving a gap of more than 1,000 mmcfd. Local fields provide around 1,600 mmcfd, while 900 to 1,000 mmcfd comes from imported LNG. State-owned companies currently produce around 700 mmcfd, up from about 566 mmcfd, while international oil companies supply around 900 mmcfd.
Since Bangladesh heavily relies on imported energy, it has been exposed to higher international prices and transport costs. Between March and August, Bangladesh Petroleum Corporation incurred around Tk23,000 crore in additional costs as global fuel prices and shipping charges rose, with shipping costs increasing from $3-$4 per barrel to $15-$17 per barrel. The government subsequently provided BPC with a Tk4,500 crore loan to help finance fuel imports and maintain uninterrupted supplies.
The government is therefore expanding domestic exploration alongside the current drilling programme. It has opened the 2026 Offshore Bidding Round for 26 blocks in the Bay of Bengal to attract international investment in gas exploration. Dr Zahed Ur Rahman also said this week that the government is waiting to see whether the recent fall in global oil prices is sustained before considering another adjustment to domestic fuel prices.
Why It Matters
The gas shortfall leaves Bangladesh dependent on imported LNG to meet demand, so every increase in domestic production can reduce the amount it must source from abroad. Since global energy prices remain in flux amid the conflict in the Middle East, expanding domestic gas production is a much-needed step towards reducing Bangladesh’s exposure to external price shocks. Information and Broadcasting Adviser Dr Zahed Ur Rahman said this week that the government is waiting to see whether the recent fall in global oil prices is sustained before considering another adjustment to domestic fuel prices.
Energy analyst Shafiqul Alam of IEEFA said the drilling programme is intended to limit Bangladesh’s future dependence on imported LNG, but stressed that the necessary infrastructure must be developed in time to bring the new gas into the national grid. The current pipeline constraints show why expanding production alone will not be enough to ease the supply pressure.
What We Think
Expanding domestic gas production is the right direction for Bangladesh, especially as imported energy remains costly and uncertain amid the Israel-Iran war in the Middle East. But that push will only go so far if pipelines and processing capacity do not keep up with the gas supply coming from new wells.