Local gas companies gained 55 million cubic feet per day (/d) of additional production this year – which is around half of the country’s daily gas supply from the pricier international spot market – thanks to scaled up exploitations, development and workover of wells of the natural resource.
Around /d gas of the extra production has already been pumped into the national grid while /d is now on standby, according to the Energy and Mineral Resources Division, as the country’s energy woes started to ease up compared to a couple of months ago.
The developments in the gas supply seems to be a silver streak after months of inconsistent gas supply to both industrial and residential clients as a fast-depleting forex reserve and volatile global energy market compelled the government to suspend liquefied natural gas purchase from the international spot market in July this year.
After cushioning the LNG import shock, now the Energy and Mineral Resources Division says another 217mmcf gas from 15 wells will flow in the national grid per day in 2023.
Besides, the division in its long-term plan targets ramping up the production by /d by 2025 through explorations, development and workover of 46 wells.
Current gas supply to the national grid hovers around 2,/d against a demand of 3,/d. Local supply accounts for 2,247mmcf of gas, as the remaining 470mmcf of gas is imported. Besides, there was a demand for 100-130mmcf of gas per day which was purchased from the international spot market.
In the face of a dollar crunch, the government cancelled spot market purchases in July, prompting Petrobangla to initiate an action plan to streamline the local production.
The short and long-term work plans include workover of marginal gas wells and exploring ones, according to Petrobangla Chairman Nazmul Ahsan.
He said Petrobangla’s long-term plan is for exploration, development and workover of 46 wells across the country and add 618mmcf of gas per day by 2025.
“We are trying everything to ease up the gas crunch,” he told The Business Standard.
Sylhet to the rescue
With a target of /d by this year, local gas exploration companies moved to drill six wells. The spot market purchase suspension, according to officials, sped up the move.
So far, drilling of five wells – Tobgi-1, Sundalpur, Sylhet-8, Kailashtila-7, Beanibazar-1, – have been completed, while exploration of Srikail-2 well in Cumilla will be completed soon, according to documents.
Of the 55mmcf gas, Sylhet wells contributed the largest volume. Md Mizanur Rahman, Managing Director of the Sylhet Gas Field Limited (SGFL), said they produced 30mmcf gas additionally this year compared to 2021, driving up the company’s current year production to /d.
The Sylhet gas company expects /d more of gas will be added to the national grid next year.
According to the managing director of the company, some 30mmcf is expected to join the grid from Kailashtilla-8, 10mmcf from Rashidpur-9 and 15mmcf from two workover wells in 2023.
LNG shock could have been averted
Energy experts said if Bangladesh ramped up gas exploration and workover of the wells earlier, the energy shock prompted by the suspension of spot LNG this year could have been averted.
The purchase suspension led to rolling blackouts and acute gas crisis in the industrial sector, mainly in the July-September period.
“The authorities were reluctant about gas exploitation. They were obsessed with the spot market,” geologist Professor Badrul Imam told The Business Standard.
“Still, we can get adequate gas from our large and marginal fields if an appropriate plan is in place,” he noted.
A top official of the Energy and Mineral Resources Division, while talking to The Business Standard on condition of anonymity, said, “There would not be any gas crisis if one-tenth investment and effort for the spot market could be dedicated for local gas exploration.”
Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association (BTMA), said the gas supply has improved in recent weeks, but he attributed the change largely to the winter.
“On low electricity demand, power plants are now consuming less gas. But power demand will pick up in April next year as soon as the winter ends,” he noted, adding gas explorers should act fast in advance.
There will be challenges
Of the 22 operational gas fields across the country, Kailashtilla in Sylhet is the largest field with above two trillion cubic feet of reserve. The daily production of this field is only /d, while the Bibiyana field owned by the US company Chevron produces around /d with a reserve of 763 billion cubic feet.
Production by the Bangladesh Gas Fields Company Limited from Titas field is also quite low, only 395mmcf per day, with the reserves of 1,294 billion cubic feet.
Rashidpur is another large field under the Sylhet gas explorer with the reserve estimated above 1,700 billion cubic feet but the daily daily production is only 43.5mmcf.
Energy experts are calling for accelerating production to ease the crisis, but the authorities point out well management issues.
Petrobangla Chairman Nazmul Ahsan said it is not possible to accelerate the production immediately as the wells are very old.
Bapex Managing Director Mohammad Ali said that fields with good reserves like Kailashtila and Rashidpur were developed in the 1960s.
“If we want to increase the daily production from the fields similar to Chevron’s Bibiana, we need to re-drill the wells,” he said.
