DHAKA, Dec 23, 2025 (BSS) - The government has approved a major energy sector proposal aimed at strengthening domestic gas exploration and enhancing long-term energy security, alongside endorsing a series of large-scale power distribution proposals in the Dhaka–Mymensingh region.

The approvals came from the 51st meeting of the Advisers Council Committee on Government Purchase in this year held today at the Cabinet Division Conference Room at Bangladesh Secretariat with Finance Adviser Dr Salehuddin Ahmed in the chair. 

The committee gave approval to an important proposal under the energy and mineral resources Division for drilling new gas wells in Bhola. The project involves the drilling of four appraisal-cum-development wells—Shahbazpur-5, Shahbazpur-7, Bhola North-3 and Bhola North-4—along with one exploration well named Shahbazpur North East-1.

The wells will be drilled under an international tender through a one-stage, two-envelope procurement method on a turn-key basis. The total estimated cost of the proposal stands at Taka 907.29 crore. Following evaluation, Sinopec International Petroleum Service Corporation of China was recommended as the responsive bidder.

Officials said the approval of this proposal will contribute significantly to increasing domestic gas production, reducing dependence on imported fuel and strengthening national energy security. The project is also expected to support industrial growth and ensure a more stable supply of natural gas for power generation and other economic activities.

The committee also reviewed and recommended for approval of several major procurement proposals under a special revised project titled “Modernisation and Capacity Enhancement of BPDB Power Distribution System (Dhaka–Mymensingh Division).” The initiatives are designed to improve grid reliability, reduce system losses and enhance the quality of power supply in one of the country’s most important regions.

Under Package MCEP/BREB/DMD-W-4, two lots were considered. Lot-1 involves the construction and augmentation of six 33/11 kV air-insulated substations (AIS) on a turn-key basis, including design, supply, installation, testing, commissioning and land development, at a cost of Taka 130.00 crore. Lot-2 covers similar works for another six 33/11 kV AIS substations, with an estimated cost of Taka 113.82 crore. Ideal Electrical Enterprise Ltd was recommended as the bidder for both lots.

Another two proposals were reviewed under Package MCEP/BREB/DMD-W-5. Lot-1 includes the construction and augmentation of seven 33/11 kV gas-insulated substations (GIS) on a full turn-key basis, costing Taka 220.90 crore. Lot-2 involves an additional seven 33/11 kV GIS substations with similar scope of work, estimated at Taka 207.91 crore. Ideal Electrical Enterprise Ltd was also recommended for both these lots.

The committee approved all four power distribution proposals, noting that the projects will play a crucial role in meeting rising electricity demand, improving system efficiency and ensuring more reliable power supply across the Dhaka–Mymensingh division.

Officials said the combined approval of the gas exploration and power distribution proposals reflects the government’s continued emphasis on strengthening the energy sector.