The government has undertaken a new initiative to increase domestic gas production and reduce import dependency. Plans have been made to drill two more wells in Titas, one of the country’s largest gas fields. The estimated cost for this is BDT 592 crore. If the project is implemented, approximately 30 million cubic feet of gas per day is likely to be added to the national grid.
The project titled ‘Drilling of Two Exploratory and Development Wells (Titas-32 and Titas-33) in Titas Gas Field’ will be presented for approval at the Executive Committee of the National Economic Council (ECNEC) meeting on October 25.
A project official provided this information on Thursday (October 22). Prime Minister and ECNEC Chairperson Tareque Rahman is scheduled to preside over the ECNEC meeting at the Bangladesh Secretariat.
The project will be implemented by Bangladesh Gas Fields Company Limited (BGFCL), a subsidiary of Petrobangla, under the Energy and Mineral Resources Division of the Ministry of Power, Energy and Mineral Resources.
The implementation period for the project has been set from October 2026 to September 2029. Out of the total expenditure of BDT 592 crore, government financing will be BDT 414.40 crore. The remaining BDT 177.60 crore will be sourced from the company’s own funds.
Petrobangla Chairman Abdul Mannan stated that the two new wells are expected to produce approximately 30 million cubic feet of gas per day. Additionally, there is a potential to obtain about 18 barrels of condensate daily.
He added that once the new wells are operational, gas supply to the national grid will increase. This will also help reduce dependency on imported Liquefied Natural Gas (LNG).
As part of a long-term plan to boost domestic gas production, the government has set a target to drill 150 wells by 2031. Subsequently, there are plans to drill another 150 wells between 2031 and 2035.
According to the project proposal, the two new wells could potentially produce approximately 100.74 billion cubic feet (BCF) of gas and 60,444 barrels of condensate over 10 years.
Based on the company’s current wellhead price or production site value, the estimated worth of this gas and condensate is BDT 339.07 crore. Of this, the value of gas is BDT 285.26 crore and condensate is BDT 53.81 crore.
However, considering the consumer-level gas price, the estimated value of the gas produced over 10 years would amount to BDT 6,523.97 crore.
BGFCL operates six producing gas fields. Currently, about 480 to 485 million cubic feet of gas per day is supplied to the national grid from five of these gas fields.
In Titas, the company’s largest gas field, 28 wells have been drilled to date. Among these, 23 wells are currently producing approximately 330 million cubic feet of gas daily.
The new project has been undertaken based on the analysis of data from a 3D seismic survey conducted in the Titas and Bakhrabad gas fields between 2010 and 2012.
BGFCL engaged BGP Inc., a subsidiary of China National Petroleum Corporation (CNPC), to review the survey data. Following the review, the company recommended drilling 16 new and seven deep wells in the two gas fields.
Titas-32 and Titas-33 wells have been prioritized under the government’s plan to drill 150 onshore gas wells.
Under the project, two wells will be drilled by a foreign contractor. Additionally, local and foreign consultants will be appointed, and necessary infrastructure, including gas collection pipelines, will be constructed.
The feasibility study for the project was conducted in 2026 by Infrastructure Investment Facilitation Company (IIFC).
Initially, the project cost was estimated at BDT 632 crore. However, during the Project Evaluation Committee (PEC) meeting held on June 18, it was recommended to reduce the expenditure to a reasonable level. Subsequently, the total project cost was set at BDT 592 crore, a reduction of BDT 40 crore.
According to the Planning Commission, the implementation of this project will increase gas supply from domestic sources. This will help reduce the pressure of LNG imports, save foreign currency, and ensure fuel supply to the country’s industrial sector.
Source: BSS