The Sundalpur-4 gas well in Shenbagh, Noakhali, where BAPEX has started drilling under a new project to increase domestic natural gas production.  BSS
Bangladesh

Bhola gas could reshape Bangladesh's energy future

BSS

Bangladesh's growing gas demand and rising dependence on imported liquefied natural gas (LNG) are putting renewed focus on the gas resources of Bhola, where significant reserves remain outside the national gas grid because of transmission constraints.

Three discovered gas fields in the southern island district - Shahbazpur, Bhola North and Ilisha - hold an estimated combined 2.047 trillion cubic feet (Tcf) of gas, of which around 1.432-1.433 Tcf is considered recoverable, according to various estimates.

Recent figures from the Energy Ministry and Petrobangla put the country's remaining extractable gas reserves at about 7.63 Tcf. Bhola's extractable reserves therefore account for nearly 19 percent of the national total - about one-fifth of Bangladesh's remaining extractable gas.

Officials and experts, however, say a more precise estimate of the recoverable reserves can be obtained through further drilling, production testing and long-term monitoring.

According to Bangladesh Petroleum Exploration and Production Company Limited (BAPEX), nine wells in Bhola have the potential to supply around 182 million cubic feet (mmcfd) of gas a day. At present, about 75 mmcfd is being utilised, while nearly another 47 mmcfd remains unused because of infrastructure limitations.

Petrobangla Chairman Mohammad Abdul Mannan told BSS that increasing production and developing transmission infrastructure must be given equal priority to make effective use of Bhola's gas.

"Even if gas reserves are available, they will not bring the expected benefits to the national economy unless there is a system to supply the gas to different parts of the country," he said.

The strategic importance of Bhola's resources is underscored by Bangladesh's wider gas supply situation. On September 15, the national grid received around 2,606 mmcfd of gas, including about 1,620 mmcfd from local sources and about 990 mmcfd from imported LNG.

While LNG imports help meet short-term supply shortages, they also expose the economy to foreign currency costs and fluctuations in international energy prices. Increasing domestic production and bringing currently unused gas into economic use have therefore become increasingly important for long-term energy security.

Against this backdrop, plans to connect Bhola's gas to the national grid have gained importance. According to Gas Transmission Company Limited (GTCL), a feasibility study has been completed for the Bhola-Barishal gas transmission pipeline, while preparation of the project development proposal is underway.

A broader Bhola-Barishal-Khulna pipeline route has also emerged as a possible option. If implemented, it could connect Bhola's gas with the national grid in the southwest and eventually create opportunities for integration with the wider gas transmission network. Such major infrastructure projects, however, would require substantial investment and time.

Connecting Bhola to the national grid could benefit industries and power plants in Khulna and other southwestern areas while easing pressure on the existing gas network and potentially reducing dependence on imported LNG.

Local utilisation is another option. Reliable gas supplies could support fertilizer plants, power generation, gas-based industries, industrial parks and economic zones in Bhola. Officials and business representatives say investment in roads, river ports, electricity, water, housing and skilled manpower would also be necessary to turn the district into a larger industrial hub.

BAPEX is already working to increase production. A processing plant is being installed to add another 60 mmcfd from the Bhola North-1, Bhola North-2 and Ilisha-1 wells, with completion targeted for December this year. Plans have also been taken to drill five additional wells.

Exploration could further expand the resource base. BAPEX and Russia's Gazprom have identified prospects for additional gas discoveries in different parts of the district, including the wider Char Fasson area.

Power generation is another potential use. Bangladesh has installed generation capacity but often faces difficulties operating plants at full capacity because of inadequate gas supplies. Using Bhola's gas locally could strengthen electricity supply in the southern region.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood said the government was emphasising domestic gas exploration, utilisation of Bhola's gas, gas imports from Malaysia and expansion of solar power generation to address energy and electricity challenges.

Energy expert and Dhaka University geology professor Dr Badrul Imam told BSS that the economic value of Bhola's gas should not be judged simply by the reserve available.

"The key issue is where the gas can create the highest economic value," he said, adding that the costs and benefits of supplying gas to power plants, fertilizer production, industries and the national grid should be assessed before making long-term decisions.

He also stressed establishing the actual economically recoverable reserves before making major investments, noting that estimated geological reserves and commercially recoverable gas are not necessarily the same.

Local entrepreneurs likewise see reliable gas supply as a prerequisite for industrialisation. Mohammad Jamal Uddin Khan, proprietor of Messrs Khan Flour Mills and a director of the Bhola Chamber of Commerce and Industry, said investment interest could rise if dependable gas supplies were ensured, but stressed that gas alone would not be sufficient without improvements in transport and industrial infrastructure.

The government's broader energy planning also includes efforts to connect Bhola's gas to the national grid. Prime Minister's Information and Broadcasting Adviser Zahed Ur Rahman said a Taka 500-crore project was being considered for taking Bhola's gas to the national grid, alongside BAPEX's project to drill and re-drill 150 wells.

Experts say Bhola requires an integrated strategy covering exploration, production, processing, transmission, industrial use and environmental protection. Decisions will also need to determine how much gas should go to the national grid, local industries and power generation while preserving capacity for future production.

With domestic gas production declining, LNG imports carrying foreign-exchange costs and demand from industry and power generation rising, Bhola offers an opportunity to add domestic supply without waiting for another major gas-field discovery.

Turning that potential into reality, however, will depend on coordinated investment in exploration, production and transmission, alongside responsible industrial development and protection of the district's coastal environment and local livelihoods.

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