The production of local gas is consistently declining, leading to the need to import liquefied natural gas (LNG) at high prices to meet the shortfall.
This has been putting pressure on the country’s foreign currency reserves. If production continues to decrease, imports will increase further. To manage this situation, the government is prioritising the renovation of 31 wells to increase local gas production.
According to sources at the ministry of energy, the government has planned the implementation of a project involving the renovation, exploration, and development of 100 wells.
Exploration wells are drilled to discover new gas reserves, development wells are drilled to increase production from old gas fields, and renovation work is carried out on old or non-functional wells to boost production. Given the current situation of gas production, renovation work is being prioritised.
Bangladesh Oil, Gas, and Mineral Resources Corporation (Petrobangla) has stated that according to earlier plans, if 50 wells are drilled by 2025, the national grid will add nearly 650 million cubic feet of gas per day. Currently, 18.4 million cubic feet of gas are being extracted daily, with 7.2 million cubic feet being supplied to the national grid.
On 22 January, the energy and mineral resources ministry held a meeting regarding well drilling. The meeting minutes show that energy adviser Muhammad Fouzul Kabir Khan emphasised the importance of well drilling.
He stated that the country’s gas reserves are steadily depleting while demand continues to rise, leading to significant foreign currency expenditure on importing fuel.
During the meeting, the energy advisor provided several directives. To avoid delays, he recommended conducting feasibility studies for multiple projects as a cluster for new initiatives. Priority should be given to exploration activities where there is a higher chance of discovering large gas reserves.
It is also essential to explore large gas reserves using BAPEX’s existing rigs and initiate efforts to increase reserves through deep well drilling. Additionally, a 5-member expert subcommittee has been formed to oversee the renovation of 31 wells.
Earlier, on 21 January, Petrobangla formed a committee to prepare a specific timetable and work plan for the renovation of the 31 wells. The committee consists of 15 members, chaired by Istiaque Ahmed, Chairman of the BAPEX Board of Directors.
The committee includes officials from the energy, Petrobangla, Bangladesh University of Engineering and Technology (BUET), and gas production companies.
The committee’s scope of work includes reviewing the schedule for the renovation of 16 wells under the 50-well exploration project and 31 wells under the 100-well project, assessing the likelihood of gas extraction, determining the feasibility of connecting the wells to the pipeline quickly, and identifying the benefits and potential of well renovation.
Additionally, priority will be given to the exploration and development of 34 and 69 wells, respectively, in two plans. The committee will submit a report to Petrobangla within 30 days.
Petrobangla’s chairman Mohammad Rezanur Rahman told Prothom Alo that the focus on well renovation is aimed at bringing the demand and supply of gas to a manageable level.
Renovation work has already begun on 16 wells, and as a result, the supply to the national grid has slightly increased with the completion of work on seven wells.
Once all the work is completed, production will further increase. The energy ministry is now expediting the approval of development project proposals (DPPs) for well drilling.
The daily demand for gas in the country is 380 million cubic feet. For several years, supply of around 300 million cubic feet has generally been sufficient, with 220 million cubic feet coming from domestic gas sources, and the remaining being met through LNG imports.
The ousted Awami League government focused more on LNG imports instead of increasing domestic gas exploration and production, which led to a steady decline in local gas production. Now, domestic production has fallen below 200 million cubic feet.
Moreover, due to high prices, the required amount of LNG could not be imported. Faced with a severe crisis, a plan to drill 50 wells was proposed in mid-2022, but it was not implemented with priority.
After assuming office, the interim government has focused on gas exploration and production and has initiated well drilling. Plans for an additional 100 wells to be drilled next year have also been outlined.
Experts believe that increasing domestic gas production is the only alternative to solving the gas crisis. With proper renovation and technological advancements, it is possible to increase production in old gas fields. Simultaneously, both onshore and offshore gas exploration activities must be ramped up.
prothom alo
