Govt intensifies gas exploration, plans to curb system loss: Minister 

The government has intensified efforts to increase domestic gas production through gradual drilling and workover of 150 wells, seismic surveys, and strengthening of the Bangladesh Petroleum Exploration and Production Company Limited (Bapex), Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood told parliament in a written response today (2 September).

Replying to a scripted question from ruling party lawmaker Khairul Kabir Khokon (Narsingdi-1), the minister said the government has already completed drilling of 30 wells under the 150-well drilling/workover programme, adding 100 million cubic feet per day (mmcfd) of gas to the national grid.

"Once the ongoing drilling of seven wells is completed, another 85 mmcfd of gas will be added to the national grid," he said.

The minister said the government has also taken up a plan to conduct 4,500 line kilometres of 2D seismic surveys and 4,200 square kilometres of 3D seismic surveys to explore domestic gas resources.

He said the government has been taking steps to strengthen Bapex, including procurement of two new drilling rigs.

The government is also examining proposals as part of its policy decision to reopen closed gas wells, he added.

On offshore exploration, Iqbal Hassan Mahmood said in the written response that the government invited bidding on 24 May, 2026 under the Bangladesh Offshore Model PSC 2026.

Regarding LNG supply, he said the government has approved a proposal submitted by China's state-owned National Energy Engineering & Construction Co Ltd (CNEE) for installing an FSRU at Kutubjom in Maheshkhali, Cox's Bazar.

"Negotiations with CNEE are currently underway, and we expect to sign the agreement by August 2026," he said.

The minister said the proposed terminal could start supplying regasified LNG by December 2028, potentially increasing LNG imports by 600 mmcfd within the next two years.

He also said the government has initiated a feasibility study for installing another FSRU on an urgent basis in the Payra or Mongla port areas or along the coastal belt of the southwestern region.

The government has also been working to establish a land-based LNG terminal at Matarbari in Cox's Bazar to ensure sustainable gas supply, he said.

He said the government is diversifying LNG import sources by signing short-, medium-, and long-term supply agreements with more suppliers alongside purchases from the spot market.

The government also plans to maximise LNG imports through the existing floating LNG terminals, he added.

The minister said the government has set company-wise system-loss reduction targets for gas transmission and distribution companies at the ministry level based on their February 2025 performance.

"We are monitoring the targets, actual achievements and the possible reasons for failure to achieve the targets, and taking necessary measures accordingly," he said.

He said the government has placed emphasis on strengthening isolation activities, zone-based accountability and reward-and-punishment mechanisms to prevent gas wastage and reduce system losses.