PM announces plans to build new LNG terminal, drill 150 wells to prevent gas crisis in industry

Jarnews Desk

Prime Minister Tarique Rahman told the National Assembly that the government has taken a plan to set up a new LNG terminal and drill 150 wells to prevent gas shortages in the industrial sector. He made the disclosure in response to a starred question by government party member Sultana Ahmed during the oral question-and-answer session scheduled for the Prime Minister in the National Assembly on Wednesday. The session of the parliament began at 3 pm under the chairmanship of Speaker Hafiz Uddin Ahmed.

Integrated plan to prevent sudden crises

The Prime Minister said that to ensure that the industrial sector does not face major losses due to sudden or temporary gas shortages, the government is emphasizing on increasing domestic gas production, establishing new LNG terminals and exploring for gas. As part of this, a plan has been taken to drill 150 wells, conduct 4,500 line kilometers of 2D seismic surveys and 4,200 square kilometers of 3D seismic surveys by 2030-2031 as per the target.

Initiative to attract international investment in marine and land exploration

The Prime Minister said that an international bidding round was called on May 24 to appoint international companies to explore and extract oil and gas in 26 offshore blocks, with the deadline for bid submission set for November. In addition, activities have also been taken to formulate the ‘Bangladesh Onshore Model PSC-2026’ to attract international investment in onshore oil and gas exploration.

Plans for a new LNG terminal

The Prime Minister said that currently, an average of about 935 million cubic feet of gas can be supplied to the country daily through two floating LNG terminals. To ensure that the industrial sector is not affected by sudden gas crises in the future, activities are underway to establish a new floating LNG terminal at Kutubjom in Maheshkhali and a land-based LNG terminal at Matarbari. According to the plan, re-gasified LNG supply is expected to start from the Kutubjom terminal in 2028 and from the Matarbari terminal by December 2030.

The Prime Minister also said that the feasibility of setting up another floating LNG terminal on an urgent basis at the Payra or Mongla port area or at a convenient location on the southwestern coast is being examined. The government believes that if this initiative is implemented, additional supply capacity will be created to deal with sudden gas crises.

Plans for Bhola gas

The Prime Minister also outlined the government’s plan to connect Bhola gas to the national gas network. She said that if Bhola gas is to be brought to the main network through a pipeline, it will take at least seven years to implement it. Therefore, plans are being made to set up industries there using Bhola gas locally, which will create new employment opportunities and increase the size of the local economy.

He further said that the government also has plans to set up a fertilizer factory and a 500 MW power plant there to properly utilize Bhola gas for the benefit of the people of the country. In addition, the feasibility of bringing Bhola gas to the mainland in the form of LNG and supplying it to interested industrial establishments is also being examined, where priority will be given to establishments in planned industrial areas like economic zones, EPZs and BSCIC.

The goal is long-term energy security.

The Prime Minister said the main goal of these initiatives is to increase gas supply from domestic sources, address import dependence, and ensure uninterrupted production in the industrial and export sectors. She also said that integrated plans are being implemented for exploration, production, and infrastructure development to ensure long-term energy security.