The government has advanced two major natural gas exploration and production projects worth Tk 11.22 billion, seeking to increase domestic gas supply, curb costly liquefied natural gas (LNG) imports and reinforce the country's long-term energy security.
The initiatives form part of the government's broader strategy to increase domestic gas production and strengthen energy security amid rising demand from power plants and industries, according to minutes of the PEC meetings.
The meetings, however, stressed the need for proper implementation planning, realistic cost estimates and timely execution to maximise the economic benefits of the proposed investments.
The committee also recommended forming a committee comprising representatives from the relevant ministries and divisions to ensure project costs are reduced to justified levels.
Under the BGFCL project, two appraisal-cum-development wells -- Titas-32 and Titas-33 -- will be drilled at the Titas Gas Field in Brahmanbaria.
The Tk 6.32 billion project is scheduled for implementation by December 2028. Of the total cost, Tk 4.42 billion will come from government funding, while BGFCL will contribute Tk 1.90 billion from its own resources.
Once completed, the two wells are expected to add around 60 million cubic feet per day (mmcfd) of gas to the national grid, with each well contributing about 30 mmcfd.
The project also includes the construction of a two-kilometre gas gathering pipeline to connect the new wells to the existing transmission network.
According to project documents, expanding the Titas Gas Field will help meet growing domestic demand and reduce pressure on foreign exchange reserves caused by LNG imports.
A feasibility study found the project to be economically viable, estimating its economic internal rate of return (EIRR) at 258 per cent.
Meanwhile, BAPEX has proposed a nine-well drilling programme with an estimated cost of Tk 4.90 billion to explore new gas reserves and enhance production from existing structures.
The project includes drilling one appraisal-cum-development well at Semutang-7, one appraisal well at Begumganj-9, and seven exploration wells, including Char-Lakshya-1.
The PEC advised BAPEX to ensure effective exploration planning, strengthen technical capacity and complete drilling activities within the project schedule to achieve the expected outcomes.
The committee also highlighted the importance of comprehensive geological assessments before exploration activities to reduce the risks associated with unsuccessful drilling.
The drilling programme will cover prospective gas structures in the Chattogram and Noakhali districts.
Of the project cost, Tk 4.08 billion will be financed through the Gas Development Fund (GDF), while BAPEX will provide Tk 820 million from its own resources.
The BAPEX project aims to identify new gas reserves, assess existing fields and strengthen the capacity of the state-owned exploration company.
The move comes as the government seeks to revive domestic gas exploration after years of increasing reliance on imported energy.
Officials said increasing domestic gas production through projects such as the Titas expansion and BAPEX's drilling programme would help ease pressure on the national budget by reducing the need for LNG imports.
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