Govt plans to drill, rework 58 wells by 2031 to bolster energy security, minister tells parliament
Fuel storage capacity to rise further as govt targets 90-day reserve, says Energy Minister Iqbal Hassan Mahmood
The government plans to drill and carry out workover operations on 58 oil and gas wells between 2028 and 2031 as part of a long-term strategy to strengthen Bangladesh's energy security, Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood told parliament today (7 June).
Responding to a question from Gazipur-5 MP AKM Fazlul Haque Milon regarding the government's future energy security plans, the minister outlined a series of initiatives aimed at boosting domestic exploration, diversifying fuel imports and expanding storage capacity.
Iqbal said the 2028-2031 programme includes drilling and workover activities in 58 wells, with new drilling locations to be identified based on data obtained from ongoing seismic surveys.
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To enhance the capacity of state-owned exploration company Bangladesh Petroleum Exploration and Production Company Ltd (Bapex), the government will procure, test and commission a 1,500-horsepower drilling rig, he added.
The minister also highlighted offshore exploration plans, noting that a bid notice for the Bangladesh Offshore Bidding Round 2026 was published on 24 May covering 26 offshore blocks, including 15 deep-sea and 11 shallow-water blocks.
Successful implementation would enable 2D and 3D seismic surveys and gas exploration drilling in both deep and shallow offshore areas, he said, adding that plans are also underway to launch new onshore bidding rounds.
As part of efforts to expand LNG infrastructure, the government intends to establish a floating LNG terminal at Kutubjom in Moheshkhali, Cox's Bazar, alongside a land-based LNG terminal in Moheshkhali, he mentioned.
Iqbal said the government aims to reduce overall system losses to 6% and expand the national gas transmission network through several major pipeline projects.
These, he added, include connecting Bhola's gas fields to the national grid, constructing the Barishal-Aminbazar-Khulna gas pipeline, building the Feni-Begumganj transmission pipeline, and determining modalities for a third parallel Moheshkhali-Bakhrabad gas pipeline.
The minister said Bangladesh Petroleum Corporation (BPC) has undertaken multiple projects to modernise fuel operations and ensure uninterrupted supply.
Key initiatives include the Single Point Mooring (SPM) project, the India-Bangladesh Friendship Pipeline, the Chattogram-Dhaka Pipeline project and the Jet A-1 pipeline linking Pitalganj and Kurmitola Aviation Depot, he noted.
To strengthen supply security, the government is also pursuing diversification of fuel import sources through government-to-government agreements, international tenders, supplier enlistment, requests for international quotations and, where necessary, direct procurement, Iqbal stated.
He said the government has adopted a broad range of long-term measures in response to rising energy demand and in line with Sustainable Development Goal 7 on affordable and clean energy; among the most significant targets is raising the country's fuel security coverage to 90 days.
He noted that Bangladesh's fuel storage capacity has increased from 693,990 tonnes to 1,572,503 tonnes over the past 25 years, an expansion of nearly 895,000 tonnes.
Over the same period, approximately 620 kilometres of fuel pipelines have been installed through projects including the Dhaka-Chattogram pipeline, the SPM system and the India-Bangladesh Friendship Pipeline, he said.
"Under the medium-term plan for 2028-29 and 2029-30, the government is identifying potential sites and projects to add another 190,000 tonnes of storage capacity. A longer-term plan covering 2026-2035 aims to expand storage capacity by an additional 1.94 million tonnes."
The minister also said a development project proposal for the modernisation and expansion of Eastern Refinery Limited was approved on 10 February 2026.
He said the project will increase the refinery's processing capacity from 1.5 million tonnes to an additional 3 million tonnes annually. Preparatory work is underway to appoint project management and EPC contractors, he added.
In addition, construction is ongoing on a 15-kilometre Jet A-1 pipeline from Pitalganj to the Kurmitola Aviation Depot to improve aviation fuel transportation, he told parliament.
