Gas Deficit May Widen Further Until 2029

Bangladesh faces a worsening gas crisis, sparking strategic initiatives by the Energy Division and Petrobangla to stabilize supply, including exploration, Bhola gas integration, foreign investment, and LNG import expansion.

- Mollah Amzad Hossain Khondkar Abdus Saleque

Despite efforts like drilling 150 new wells by 2028, progress is hindered by delays, bureaucratic issues, and uncertain reserves. With growing demand, the country’s gas supply capacity may remain insufficient by 2030 unless reforms in contractor engagement, data transparency, and PSC frameworks are implemented swiftly. The Energy Division and Petrobangla have launched multifaceted initiatives to confront a sustained, chronic gas crisis. These include implementing ongoing exploration and development projects, connecting discovered gas resources in Bhola with the national gas grid, and attracting private sector investment through fresh bidding—following the finalization of an updated Model PSC for onshore exploration and an updated MPSC for offshore, especially targeting prospective gas blocks in the Chattogram Hill Tracts and offshore areas of the Bay of Bengal. Plans also involve setting up an FSRU and a land-based LNG terminal to increase import capacity.

The target and objective are to achieve a gas supply capacity of 4,800 MMCFD by 2030. Relevant experts and analysts have observed that domestic gas production is declining by 120-150 MMCFD annually. Current production is hovering between 1,885 and 1,930 MMCFD. Petrobangla is optimistic about increasing this to 2,000 MMCFD by implementing its ongoing and planned initiatives successfully.

By early May 2025, about 49 MMCFD of new gas can be evacuated to the gas grid from three freshly drilled wells in the Sylhet region. The capacity of the two operational FSRUs stands at 1,100 MMCFD. Work is in progress to increase this capacity to 1,600 MMCFD by 2028, 2,100 MMCFD by 2030, and 2,600 MMCFD by 2032.