DHAKA, Dec 3, 2025 (BSS) - The government is moving ahead with a major initiative to boost domestic gas production as it has approved the implementation of a Taka 1,136.25-crore project to drill three new exploration wells in Srikail, Mobarakpur and Fenchuganj in the country.

The project, proposed by the Energy and Mineral Resources Division and to be implemented by Bangladesh Petroleum Exploration and Production Company Limited (BAPEX), aims to strengthen the country's indigenous gas supply amid rising energy demand across industrial and household sectors.

According to official documents, the project titled "Drilling of Three Exploration Wells (Srikail Deep-1, Mobarakpur Deep-1 and Fenchuganj South-1)" will be implemented by December 2027. Funding will come mainly from the government through a loan allocation of Taka 909 crore, while BAPEX will contribute Taka 227.25 crore from its own resources.

The new wells are located in three districts under Chattogram, Sylhet and Rajshahi divisions. The initiative forms a key part of BAPEX's plan to drill 20 new wells under its nationwide exploration programme.

The project was approved by the Executive Committee of the National Economic Council (ECNEC) in its last meeting.

Commenting on the project after the ECNEC meeting, Planning Adviser Dr Wahiduddin Mahmud said, "As always, there is a recurring issue we deal with - new exploration wells for gas whether drilling new exploration wells or completing the necessary steps to bring gas from already-discovered wells. Since we assumed office, every meeting includes at least one or two such gas projects."

The Adviser said although imports are still required, the real issue is that in the last 15 years almost no new wells were drilled even BAPEX was not strengthened. "If we start now, gas will not appear in one year, but if we never started, we would never reach that point. For the first time, we are strengthening BAPEX by financing the purchase of necessary equipment for drilling and subsequent stages. This is part of a long-term approach."

Under the project design, the Srikail Deep-1 and Mobarakpur Deep-1 wells will each be drilled up to a depth of 6,000 meters, while Fenchuganj South-1 will be drilled to 4,000 meters. The work will include rig mobilization and demobilization, construction of rig foundations, drilling operations, testing and completion services. Consultancy support will also be engaged particularly for the two deep wells in Srikail and Mobarakpur.

Talking to BSS, a senior Planning Commission official noted that the locations were finalized after analysing 3D seismic survey data and reviewing extensive geological information collected by BAPEX. The geological prospects in the three structures show strong potential for significant gas deposits.

If commercial gas is discovered, the estimated Gas Initially in Place (GIIP) from the three wells is projected at 1,696.36 billion cubic feet (BCF). Of this, around 1,018.14 BCF could be recoverable - an amount policymakers say would play a "critical role" in strengthening the country's energy security.

"This project is strategically important as it aligns with the government's plan to ramp up domestic production and reduce dependency on imported LNG," said the official of the Planning Commission's Industry and Energy Division. He added that the exploration outcome from these wells could "substantially enhance the national reserve base."

The Project Evaluation Committee (PEC) of the Planning Commission reviewed the proposal in its meeting held on July 8, 2025, where it endorsed the project and recommended its approval. The committee emphasized timely implementation, improved coordination with Petrobangla and the need for modern drilling technologies to enhance success rates.

Energy sector analysts view the development as a timely step given the increasing pressure on the national gas supply system. With industrial expansion and growing power generation needs, Bangladesh's reliance on gas imports has continued to rise. Successful discovery of new domestic reserves would help contain import costs and stabilize long-term energy planning.

BAPEX, the state-owned exploration company, has been working to expand its operational capacity in recent years. The agency has already conducted several 2D and 3D seismic surveys across potential gas-bearing regions, identifying multiple prospects for further evaluation.

With the ECNEC approval, the new drilling initiative is expected to create momentum for broader exploration activities under the government's energy sector roadmap. Officials believe it could also encourage private and international investment in exploration.