Plan to dig 150 wells, set up new LNG terminal to tackle gas crisis: PM

Prime Minister Tarique Rahman has said the government is placing special emphasis on increasing domestic gas production, setting up new LNG terminals and intensifying exploration activities so that the industrial sector does not face major losses due to the temporary gas crisis.

The prime minister said this while replying to a star-marked question from ruling party MP Sultana Ahmed during the scheduled question-and-answer session of the parliament session on Wednesday.

He said the government has taken up a plan to dig 150 wells, conduct 2D seismic survey in 4,500 square kilometres of area and 3D seismic survey in 4,200 square kilometres of area by 2030-31.

The prime minister said tenders were invited from international companies on May 24 for oil and gas exploration and extraction in 26 offshore blocks in the deep and shallow sea, with the tender submission deadline in November.

He said the government has also taken an initiative to formulate the "Bangladesh Onshore Model PSC-2026" to attract foreign investment in onshore oil and gas exploration.

Noting that 935 million cubic feet of gas is currently being supplied on average daily through two floating LNG terminals, the prime minister said work is under way to set up a new floating LNG terminal at Kutubjom in Moheshkhali and a land-based LNG terminal at Matarbari to protect the industrial sector from the crisis. He expressed hope that regasified LNG supply from Kutubjom would be available in 2028, and from Matarbari by December 2030, as per plan.

The prime minister also said the government is urgently assessing the feasibility of setting up another floating LNG terminal at Payra or Mongla port in the country's south-western region, or at any other suitable coastal area. He said that once implemented, this would create additional supply capacity to meet sudden crises.

The prime minister also outlined the plan to connect Bhola's gas to the national grid. He said it would take at least seven years to connect Bhola's gas to the main network through pipeline, and the government is therefore planning to use this gas locally by setting up industrial factories in that region. He said some gas-based industrial factories are already being set up, which will create employment opportunities and expand the local economy.

The prime minister said plans are also under way to set up a fertilizer factory and a 500-megawatt power plant in Bhola to ensure the maximum and proper use of Bhola's gas. He said the government is also assessing the feasibility of supplying Bhola's gas in liquefied (LNG) form to the mainland for interested industries, giving priority to factories in economic zones, EPZs and BSCIC industrial cities.

"The main objective of these initiatives is to increase the supply of domestic gas, reduce dependence on imports, and ensure uninterrupted production in the industrial and export sectors," said Prime Minister Tareq Rahman.

The prime minister said an integrated plan for exploration, production and infrastructural development is being implemented to ensure long-term energy security.