To this effect, the government will drill 100 new and old gas wells between 2025 and 2028. Eight new projects have been introduced to implement this plan, including drilling new gas wells and enhancing the capacity of existing ones.

Impact of Gas Shortage

The industrial sector in Bangladesh is facing a major crisis due to the gas shortage. Key industrial areas such as Dhaka, Savar, Ashulia, Gazipur, Narayanganj, Narsingdi and Chattogram are seeing factory closures due to gas scarcity. The shortage is affecting not only residential consumers but also power generation, fertiliser production and industrial operations, severely impacting the country’s economy and employment. However, the government’s plan to increase gas production is expected to alleviate the crisis.

Dr Md Mostafizur Rahman, member (secretary) of the Industry and Energy Division at the Planning Commission, said the government’s target is to drill 100 new and old gas wells by 2028, with 35 new wells planned by 2025. Several new projects have already been proposed, with three set to be presented to the Executive Committee of the National Economic Council (ECNEC) on 23 December. These projects aim to boost gas production and reduce LNG imports.

Details of Gas Projects

The government has outlined several new initiatives to enhance gas production, including three major projects. The first is a 60-MMSCFD capacity processing plant at the Bhola North Gas Field. This project, with an estimated cost of Tk238 crore, will increase gas supply to the Bhola district and reduce the need for LNG imports.

The third project involves a 2D seismic survey and exploration of blocks 7 and 9, which is expected to increase recoverable gas reserves by 4,295.4 BCF, further reducing the need for LNG imports and saving foreign currency.

Govt’s Efforts to Tackle Energy Crisis

A significant part of the government’s strategy is to accelerate gas exploration both onshore and offshore. Energy Adviser Muhammad Fauzul Kabir Khan stated that gas exploration activities are being expedited, with offshore exploration tenders already completed, and seven companies have shown interest. This could help resolve the ongoing gas shortage if successful.

The gas shortage has severely affected industries, especially the garment, steel and ceramics sectors. Areas with dense industrial activity like Dhaka, Savar, Ashulia, Gazipur, Narayanganj and Chattogram have experienced significant reductions in gas supply, leading to factory closures. To protect the industrial sector from further damage, prompt measures to ensure a steady gas supply are essential.

Gas Wastage and Theft

Gas wastage and theft remain a major concern. It is estimated that nearly Tk12,000 crore worth of gas is wasted annually, much of it due to theft. Business owners have suggested that measures to curb gas theft and implement gas rationing for vehicles and households could help. In response, the government has launched crackdowns, including disconnecting 5,000 illegal connections in Keraniganj, including 110 industrial connections.

High Cost of LNG Imports

Petrobangla Chairman Zanendra Nath Sarker stated that while electricity generation was previously given priority for gas supply, now the industrial sector is receiving top priority. Since 17 October, gas supply to the industrial sector has improved, and he assured that the situation would not worsen until 2030.

He also mentioned that if gas well drilling projects are approved quickly, 50 wells could be drilled by 2025 and 100 by 2028. Additionally, efforts to reduce gas wastage are ongoing, including the recent disconnection of 5,000 connections in Keraniganj, with plans for similar operations in Narayanganj, Gazipur, Savar, and Ashulia.

Addressing the LNG Import Crisis

Bangladesh is grappling with a severe gas crisis due to declining domestic production and unstable LNG imports. The daily demand is around 4,000 mmcfd, but domestic output has dropped to 2,000 mmcfd. The government imports LNG through two Floating Storage and Re-gasification Units (FSRUs), which supply 1,000 mmcfd, leaving a deficit of 1,000 mmcfd.

Expert Opinions on Energy Efficiency

Research by IEF (International Energy Forum) reveals that the average efficiency of self-produced power plants in industry is 35.38%. By using higher-efficiency generators, this could be increased to 45.2%. In addition to improving efficiency, the heat generated from the generators could be used for production purposes. This could reduce LNG imports by 50.18 billion cubic feet annually. Experts suggest that, instead of increasing imports, focusing on enhancing energy efficiency will be key to meeting rising demand.

Experts believe that the government’s plan to increase domestic gas production will significantly reduce reliance on LNG, benefiting both the industrial sector and the national economy. However, successful implementation will require efficient management of gas exploration, production, and distribution. If these initiatives are successfully executed, they will mark a critical step toward resolving the gas crisis and revitalising the industrial sector and growth.