Bangladesh plans to drill 150 gas wells to boost supply

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Bangladesh plans to drill 150 gas wells and establish three to four new liquefied natural gas (LNG) terminals to increase gas supply, Finance Minister Amir Khosru Mahmud Chowdhury has said.

Speaking at a discussion organised by the Foreign Investors’ Chamber of Commerce and Industry (FICCI) in Dhaka on Monday, the minister said the government was strengthening the state-owned Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) and had approved the purchase of equipment for the drilling programme.

He said the government was also pursuing onshore and offshore gas exploration and encouraging renewable energy through tax exemptions and incentives for solar power. Arrangements have been made to buy surplus electricity generated by rooftop solar panels at higher rates.

To address the gas shortage, the government plans to establish three to four floating storage and regasification units (FSRUs), with private investors from South Korea, China and the United States showing interest, he said.

A new deep-sea site near Khulna has also been identified alongside Matarbari for a modern energy terminal capable of handling large oil and LNG vessels. The plan aims to help develop an energy hub.

Khosru also outlined reforms in revenue administration, banking and the capital market to improve economic stability and attract investment. The National Board of Revenue (NBR) is being divided into separate policy and implementation divisions, while the government is considering a dedicated equity-based fund in Hong Kong to attract foreign investment into Bangladesh’s capital market.

He said discussions had also been held with major investors on Wall Street and expressed hope that investment in the country’s capital market and bond sector would increase.