BAPEX to spend Tk 729 crore to find gas worth Tk 120,000 crore

The country is gasping under a severe gas crisis. From households to industrial factories—there is an acute shortage of this fuel everywhere. Taking advantage of this situation, the prices of Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) have skyrocketed. Consumers' walllets are being emptied.

In such a context, Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) has delivered major good news. The state-owned company says it has taken the initiative to drill three wells, from which gas worth about Tk 1.20 lakh crore (120,000 crore) may be obtained.

BAPEX says that to increase natural gas production at the local level, reduce dependence on imported fuels, and strengthen the country's energy security, it has undertaken an initiative to drill one appraisal-cum-development well and two exploratory wells at a cost of Tk 729 crore 22 lakh. These three wells could yield 711 billion cubic feet of gas.

The project titled "Drilling of one appraisal-development well (Begumganj-5) and two exploratory wells (Begumganj-6 and Sunetra-2)" is being placed tomorrow before the meeting of the Executive Committee of the National Economic Council (ECNEC). The meeting, to be held in the Cabinet Room of the Secretariat, will be chaired by the Prime Minister and ECNEC Chairperson Tarique Rahman.

Officials of the Planning Commission say the project has been set for implementation by June 2028. The government will provide Tk 583 crore 37 lakh in funding, while BAPEX will contribute Tk 145 crore 85 lakh from its own funds.

When asked about the project, Planning Secretary S.M. Shakil Akhtar told Agamir Somoy, "The country's energy security is extremely important. Self-reliance cannot be achieved through imports from abroad. Moreover, the huge amount of money spent every year on fuel imports—where do we have that much money? That is why the government wants to utilize the potential that exists within the country. That is why we are giving special importance to gas well-related projects. This is highly necessary."

Sources in the Energy and Mineral Resources Division say the government wants to meet Bangladesh's growing energy demand and reduce pressure on the import-dependent energy system. For this, domestic natural gas exploration and production need to be increased. In this reality, initiatives have been taken to drill one exploratory well at Begumganj in Noakhali (Begumganj-6 and Begumganj-5) and another exploratory well (Sunetra-2) in the Sunetra geological structure under Dharmapasha upazila in Sunamganj. Currently, 11.5 million cubic feet of gas per day is being produced from existing wells (Begumganj-3 and Begumganj-4) in the Begumganj area. The chances of success for these new wells are very high. If the proposed three wells can be successfully drilled and commercially extractable gas is confirmed, an estimated 35 MMSCF (million standard cubic feet) of gas per day will be added to the national grid. This will help increase the country's gas production capacity.

Sources say, according to technical evaluation, the total recoverable gas from this project is approximately 711 BCF (billion cubic feet). Its market value, considering the equivalent price of imported LNG (at $13.14/MMBTU and Tk 6,006 per cubic meter), is about Tk 1,20,851 crore (120,851 crore). If the project is implemented, besides saving a huge amount of foreign currency, the best use of domestic resources will be ensured and it will play an effective role in strengthening national energy security.
Professor Anu Muhammad, an economist and one of the leaders of the movement to protect natural resources, energy, electricity, and ports, told Agamir Somoy, "This is a very good initiative. More such initiatives should be taken during this critical time. Domestic institutions have a much higher success rate in gas exploration and extraction. In this case, placing the work with BAPEX instead of foreign companies has raised greater hope."

However, he added, "Wells are drilled based on some preliminary tests. One cannot expect a 100% success rate. There is no precedent of 100% success anywhere in the world. It is enough that Bangladesh will be successful in this regard."

Sources at Petrobangla (Bangladesh Oil, Gas and Mineral Resources Corporation) say that to increase gas production to meet the country's growing energy demand, the Begumganj-5 appraisal-cum-development well will be drilled to a depth of 3,550 meters. Besides, the Begumganj-6 exploratory well will be drilled to a depth of 3,400 meters. The Sunetra-2 exploratory well will be drilled to a depth of 5,300 meters. Through this, testing and completion will be carried out to confirm the presence of commercially extractable gas.

The project proposal states that the current government's election manifesto mentioned strengthening BAPEX in geological surveys and well drilling for domestic gas exploration as one of the most important goals related to the energy sector. It also mentions strengthening onshore and offshore gas exploration through this. If the proposed project is implemented, BAPEX's exploration activities will be expanded, which will directly play a role in increasing domestic gas exploration and extraction. As a result, the project will effectively help ensure energy security through transparent, efficient, and optimal use of domestic resources as a driving force for national development declared in the government's election manifesto, and build a cost-effective and reliable energy system.

Main activities under the project: If the proposed project is approved, the work to be done includes—acquiring and developing 10.61 acres of land in the three well areas. In addition, civil works including rig foundations for drilling Begumganj-5 and Begumganj-6 wells, and procurement of local and foreign materials and equipment for these two wells. Simultaneously, drilling the Begumganj-5 appraisal-cum-development well to a depth of 3,550 meters using BAPEX's own rig, the Begumganj-6 exploratory well to 3,400 meters, and the Sunetra-2 exploratory well to 5,300 meters on a turn-key integrated drilling operation basis.

Currently, the daily gas demand in the country is at least 550 crore cubic feet (5.5 billion cubic feet). However, demand based on connections is considered to be 380 to 400 crore cubic feet. In contrast, supply is averaging around 260 to 265 crore cubic feet. Of this, roughly 100 crore cubic feet comes from imported LNG. Of the 29 gas fields in the country, 20 are producing regularly. Production has not started from four newly discovered gas fields. The other five fields have been abandoned for a long time.