Energy ministry seeks swift project approvals

Nearly 20 months after first seeking exemptions from mandatory feasibility studies for selected gas- exploration projects, the Ministry of Power, Energy and Mineral Resources has renewed its push for broader regulatory relaxations to accelerate domestic gas production amid mounting dependence on imported liquefied natural gas (LNG).
In two demi-official (DO) letters sent to Planning Minister Amir Khosru Mahmud Chowdhury last week, Energy Minister Iqbal Hassan Mahmood sought sweeping changes to the existing project approval framework, arguing that lengthy bureaucratic procedures were delaying exploration activities critical to boosting indigenous gas output, sources say.
The latest move expands an earlier proposal made in November 2024, when the Energy and Mineral Resources Division (EMRD) sought exemptions from mandatory third-party feasibility studies for five gas exploration projects involving 13 wells.
At the time, it argued that repeated feasibility studies for technically similar drilling projects increased costs and delayed implementation.
Under the fresh proposal, the minister sought to allow gas exploration and production projects financed from the implementing agencies' own funds to be processed by the EMRD instead of the Planning Commission.
He also proposed that such projects be approved by the minister or state minister concerned, rather than being placed before the Executive Committee of the National Economic Council (ECNEC) for approval.
In a separate letter, the minister requested exemptions from the mandatory feasibility study requirements for proposed gas exploration and production projects with an estimated cost exceeding Tk 500 million.
According to the letters, the ministry plans to drill 117 wells under 27 projects over the next five years, targeting an additional 1,535 million cubic feet per day (MMCFD) of gas supply to the national grid by 2031.
The ministry said successful implementation of the projects would significantly reduce Bangladesh's dependence on imported LNG and save a substantial amount of foreign exchange.
Defending its proposal, the ministry argued that petroleum exploration projects were fundamentally different from conventional public investment schemes as seismic surveys, exploratory drilling, and field development activities generally produced similar Benefit-Cost Ratios and Internal Rates of Return outcomes.
As a result, requiring separate third-party feasibility studies for each project was repetitive and time-consuming, and they unnecessarily delayed implementation, he said.
Under a January 2026 circular issued by the NEC-ECNEC Coordination Wing of the Planning Division, self-financed projects costing more than Tk 500 million must be processed through the Planning Commission for ECNEC approval, while projects below the threshold can be approved by the respective ministries following recommendations of the Divisional Project Evaluation Committee (DPEC).
Officials say the proposed relaxations are intended to shorten project processing time and expedite domestic gas exploration in line with the government's election pledge to intensify oil and gas exploration.
Energy experts welcome the renewed focus on domestic gas exploration, saying it marks a shift away from the previous policy of relying heavily on imported LNG.
They, however, caution against completely dispensing with project scrutiny.
Professor M Shamsul Alam, senior vice-president of the Consumers Association of Bangladesh (CAB), says the government should take immediate steps to enhance domestic gas exploration to reduce dependence on expensive LNG imports.
"Feasibility studies for some selected projects may be relaxed to a certain extent, but not for every project," he tells The Financial Express.
He says an appropriate technical body should independently verify the economic and technical justification of projects to ensure the lowest possible cost and the highest public benefit where formal third-party feasibility studies are waived.

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