Despite the rapid depletion of gas reserves, no significant new gas fields are being discovered in the country. Experts estimate that the existing reserves will last for only about 12 more years. With no major gas fields being found on land and the depletion of existing ones accelerating, concerns about the future of natural gas supply are mounting. Additionally, international tenders for offshore exploration have failed to attract foreign companies, further exacerbating the crisis, according to sources from Petrobangla.
Due to dwindling natural gas reserves, the country is increasingly relying on expensive imported Liquefied Natural Gas (LNG). This dependence is driving up industrial production costs and overall living expenses. If ongoing gas exploration efforts fail to yield positive results, the situation could worsen significantly. Currently, 80% of the gas used is domestically sourced, while 20% is imported LNG. However, if no new gas fields are discovered, this ratio may reverse, leading to an 80% dependency on imported LNG, which would place a heavy financial burden on the country.
At present, gas production is being carried out from 20 small and large fields, with four additional fields containing gas reserves that remain untapped. Production has been halted at five fields due to various issues. As of January last year, approximately 20.8 trillion cubic feet (TCF) of gas had been extracted, leaving an estimated 9.12 TCF in reserves. Given the annual extraction rate of about 1 TCF, these reserves are expected to last between 10 to 12 years. However, this assessment is based on a 2010 survey conducted by a U.S. company. Daily gas production, once exceeding 2,500 million cubic feet, has now declined to around 2,000 million cubic feet. Without new discoveries, the country will have no choice but to rely entirely on imported LNG, exacerbating the crisis.
Furthermore, the production from the largest gas fields in the country is also declining. The Bibiyana gas field in Habiganj initially had an estimated reserve of 8,383 billion cubic feet (BCF), with 5,755 BCF deemed extractable. By January this year, 5,827 BCF had already been produced. Similarly, the Jalalabad gas field in Sylhet originally had 2,716 BCF, of which 1,429 BCF was extractable. By January, 1,632 BCF had already been extracted. The Moulvibazar gas field initially had 494 BCF, with 428 BCF considered extractable, and by January, 351 BCF had already been used. Based on these figures, reserves in Moulvibazar are nearly depleted, and Bibiyana and Jalalabad fields are also approaching exhaustion. While there has been no official announcement regarding additional reserves at these fields, U.S. energy giant Chevron reported an increase of 481 BCF in May last year, according to a filing with the U.S. Securities and Exchange Commission.
In the last 15 years, only the Bhola gas field has been discovered on land. Despite its large reserves, the lack of a pipeline connection has prevented its integration into the national grid. To boost reserves, authorities have initiated drilling, well development, and rehabilitation efforts in older fields. Petrobangla is working to increase production through these measures. However, offshore gas exploration remains unfulfilled. In March 2024, Petrobangla issued an international tender for offshore oil and gas exploration, but despite initial interest from seven foreign companies, none submitted bids by the deadline.
According to Petrobangla, as of January this year, the Sylhet Gas Field Limited (SGFL) has five fields with over 5 TCF of remaining reserves. However, daily production stands at just 118 million cubic feet. SGFL has 14 operational wells. Another state-owned company, Bangladesh Gas Field Company Limited (BGFCL), has five fields with nearly 3 TCF in reserves, producing 546 million cubic feet per day.
The lack of new discoveries and the rapid depletion of existing gas fields pose a significant challenge for the country’s energy security. If new sources are not identified soon, the rising dependence on imported LNG may lead to severe economic and industrial repercussions.
LND/SAKIB
