The government has taken steps to increase import of LNG (Liquefied Natural Gas) as well as supplies from local sources to overcome the gas crisis in the country.
As part of this, initiatives have been taken to increase production and strengthen exploration activities by overhauling existing and abandoned gas wells. Petrobangla and Bapex have plans to dig exploration wells in the Chattogram Hill Tracts and Shariatpur district soon this year, energy and mineral resources division officials said.
According to survey data, the country has huge gas reserves in the Chattogram Hill Tracts. As the price of oil and gas continues to rise in the world market, the government is now giving priority to the exploration of gas in this area.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid said gas exploration activities were a matter of time. Government is trying to bring speed there. However, there is no alternative to increasing import as there is not enough local gas. But the floating LNG terminal that exists now cannot supply more than 100 crore cubic feet per day. It will take more floating LNG to increase imports which will take about 1.5 years.
Demand and consumption have increased over the last decade due to massive economic growth. With no large gas reserves discovered, local gas production in Bangladesh is already declining significantly. As a result, there has been a shortage of fossil fuels and increased imports of liquefied natural gas (LNG).
Stakeholders have warned that if no major gas field is found in the country in the next few years, the growth and productivity of various sectors of the industry will be severely hampered.
Currently, the daily consumption of gas in the country is 3,126 million cubic feet. Of this, 2,284 million is produced from local sources, while the rest is being imported from the Middle East. However, the country’s actual gas demand is around 4,200 million cubic feet per day.
In 2020, domestic gas fields produced 2,570.4 million cubic feet of gas per day, which has dropped by 286.4 million cubic feet per day within the last two years.
And as a result, reliance on LNG imports is increasing to bridge the gap between supply and demand of domestic sources. However, the price of LNG in the global market is now showing a volatile trend.
Sources said, the country's total proven and potential gas reserves are 29.54 trillion cubic feet in 27 commercial gas fields. However, according to Petrobangla's data, 20 trillion cubic feet of total gas reserves had already been extracted by 2021.
Currently, the country's gas fields produce about 900 billion cubic feet of gas per year. If gas is to be produced in this way, natural gas can be produced in the country for only the next 10 years.
Petrobangla chairman Nazmul Ahsan said, “We are planning to renovate or overhaul the aging, drying up and abandoned gas fields. We hope that 100 million more cubic feet of gas will be added to the national grid in this process.”
Petrobangla has also taken plans for deep drilling in five gas fields of the country. Of these, two Bapex-operated Mubarakpur and Srikail gas fields will be drilled. The other two will be drilled at BGFCL (Bangladesh Gas Field Company Limited)-operated Titas and Bakhrabad gas fields. The other one is located in the Rashidpur gas field of SGFL (Sylhet Gas Fields Limited).
According to Petrobangla sources, Bangladesh Petroleum Exploration and Production Company (BAPEX) will explore for gas in the Chattogram Hill Tracts in a joint venture with foreign companies. Three companies have already expressed interest in this. Ariel, an Uzbekistan company has already submitted an interest letter. They have offered to work with Bapex on exploration, development and production in the 22A and 22B blocks of the CHT. Apart from this, the multinational company is also showing interest in investing in Bhola gas field. Ariel has done well drilling in Bangladesh earlier. They have a drilling rig in Bangladesh.
Mohammad Ali, Managing director of Bapex, said “Bapex has undertaken a number of projects to increase gas exploration and production. We have taken initiative to dig deep wells in two blocks of Chattogram Hill Tracts. The work of digging a well in Shariatpur will start soon. Apart from this, more wells will be dug in Bhola. Four exploration wells are scheduled to be drilled by 2023.
Recently, Bangladesh Petroleum Exploration and Production Company Limited-Bapex has hit a new gas reservoir in Kailash Tila field, the main source for Sylhet Gas Fields Ltd.
The yield of Kailash Tila was on average 69 million cubic feet per day in 2016, but it dropped to 29 million cubic feet in January this year.
In the old Kailastila field, Bapex found new gas reserve during work of the well that also has condensate -- a petroleum-like product. Within a few days, this field is expected to produce around 15 to 17 mmcft gas and around 160 barrels of condensate per day.
Moreover, new gas has been found in an abandoned well at ‘Saldanadi gas field’ in Brahmanbaria district recently. It was discovered during workover of the well. Officials expect around 4 to 5 million cubic feet of gas to be produced from the well per day.