Bangladesh Faces Looming Gas Supply Crisis

Bangladesh’s gas sector is confronting a serious long-term challenge, as domestic production struggles to meet rising demand. Expanding output from existing gas fields must be the nation’s highest priority. While official reports suggest substantial reserves in several areas, the accuracy of these figures and the ability to convert these reserves into sustained production remain uncertain. Many wells are experiencing declining yields, and the additional output from new drilling or redevelopment of existing wells is insufficient to compensate for this loss.

Both Petrobangla and BAPEX have announced plans to increase the number of operational wells. What was once a plan for 58 wells has now been expanded to 108. Despite these efforts, the resulting increase in production has been partial and unsustainable. This raises two possibilities: either the reported reserves are overestimated, or even if reserves exist, Bangladesh is failing to convert them into permanent production gains.

Experts identify three key challenges: a lack of sufficient investment, outdated technology, and limited technical expertise. The shortage of experienced personnel is particularly noticeable in engineering and operational management.

Several measures have been proposed to address the crisis:

  1. Engage international consulting firms: Independent experts could reassess fields, optimise well redevelopment, and design a results-oriented roadmap for sustainable production.

  2. Utilise smaller and intermediate layers: Exploit smaller gas layers above major reservoirs to enhance overall output.

  3. Develop the Chatak field: Estimates suggest up to 1 TCF of gas could be extracted with modern technology and detailed technical assessment.

  4. Accelerate exploration: Rapid and transparent licensing processes for new fields are essential.

  5. Ensure proposal evaluation and policy transparency: Offers from international companies to increase production, such as Chevron’s proposals, should be reviewed carefully rather than rejected without justification.

The current production landscape and future requirements can be summarised as follows:

AspectDetails
Major production centresBibiyana, smaller/intermediate wells, Chatak field
Total well plan108 wells (previously 58)
Production challengesDeclining output from many wells; gains from new wells insufficient
Core constraintsInvestment shortfall, outdated technology, limited expertise
Recommended interventionsInternational consulting, small-layer exploitation, accelerated exploration
Short-term optionsGas redistribution, conversion from CNG to LPG
Long-term strategyRenewable energy, rooftop solar, new gas and coal-fired power plants

In the short term, redistributing gas supplies and increasing LPG usage can help maintain uninterrupted supply to industries and households. Coal-fired plants and the 2,400 MW Rooppur nuclear power plant can reduce dependence on natural gas for electricity.

In the longer term, the three pillars for securing Bangladesh’s energy future are: expanding domestic gas production, introducing advanced international technology and expertise, and integrating renewable energy sources. Without urgent and coordinated action, the country risks a serious gas supply crisis, threatening industrial growth, exports, and national energy security.

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