Declining Production in Major Gas Fields Raises Concerns

The availability of natural gas in the country is steadily declining. Within just one year, gas production has decreased by approximately 200 million cubic feet, causing significant concern for the interim government. Despite various measures to increase gas production, experts believe that substantial improvements will require long-term planning and time.

According to sources, the previous government prioritized gas imports over exploration, which has led to a decline in the domestic gas sector that is now difficult to manage. Petrobangla reports that the daily gas demand this year exceeds 5,000 million cubic feet, while only 2,832 million cubic feet (including LNG) was supplied as of August 13.

Experts warn that without proper measures, the country could face significant risks in the future. **Gas Production Overview** According to Petrobangla, the average gas production from 22 state-owned and privately-owned gas fields this year is around 1,000 million cubic feet, compared to 1,200 million cubic feet during the same period last year. The Titas gas field, a major producer, has seen its production drop from 378 million cubic feet last year to 319 million cubic feet this year from its 26 wells. Similarly, production in the Habiganj gas field has decreased from 116 million cubic feet to 90 million cubic feet, and the Rashidpur gas field’s output has fallen from 69 million cubic feet to 61 million cubic feet. While production has increased in some wells, it remains insufficient. Additionally, the Bibiyana gas field, operated by Chevron and one of the country’s largest, has seen a notable decline, with production dropping from 1,000 million cubic feet last year to 900 million cubic feet this year. The Jalalabad gas field’s production has also decreased from 152 million cubic feet to 137 million cubic feet. **Efforts to Balance with LNG** To address the declining natural gas production, the interim government is attempting to meet demand through increased LNG imports. The country currently has the capacity to supply 1,100 million cubic feet of LNG, with 600 million cubic feet supplied last year. This year, LNG supply has been increased to 1,000 million cubic feet, covering a significant portion of the gas demand through imports. Sources indicate that rising gas demand has depleted reserves, leading to reduced production. To counter this, efforts are underway to boost production by installing compressors at wellheads. However, experts note that the previous government’s focus on imports rather than increasing domestic production has exacerbated the situation. Projects initiated by the previous government included establishing a third floating LNG terminal in Maheshkhali, a floating terminal in Payra, a gas supply pipeline from Bhomra-Khulna in Satkhira, a Benaful-Khulna pipeline for gas imports from India, and a Bhola-Barishal-Khulna pipeline. Under special provisions, contracts were signed with Summit Group for a rental-based floating LNG terminal in Maheshkhali, and a deal with U.S.-based Excelerate Energy for a floating terminal in Payra was in its final stages. However, the interim government canceled these projects by repealing the special provisions law. As a result, significant improvements in the gas situation are unlikely in the near future. Developing a new gas field takes approximately three years, while establishing a land-based LNG terminal requires about seven months. With reserves in major fields like Bibiyana depleting at an alarming rate, any major disruption in production could lead to a severe gas crisis. Energy expert Ezaz Hossain told Dhaka Post that the gas crisis has been ongoing for a long time. He noted that the previous government acknowledged its mistake in prioritizing imports over exploration and later initiated exploration efforts. However, the current situation remains far from reassuring. The interim government’s decision to drill 100 new gas wells is a positive step, though it is unlikely to be completed during its tenure. Hossain emphasized that the next government must prioritize implementing these initiatives.

Power, Energy, and Mineral Resources Adviser Fouzul Kabir Khan told Dhaka Post that efforts are being made to increase gas production through exploration, though it is a time-consuming process. Production is also being enhanced through workovers. He added that a roadmap for gas and electricity is being developed to guide future governments, as significant improvements may not be possible during the interim government’s term.