Message from Chairman

Energy is the prime mover of an economy which ultimately contributes to propping up the living standards of the people. Since the early 1960s indigenous natural gas is the major primary energy source of Bangladesh due to its versatility and affordability. Natural gas accounts for about three quarters of primary energy supplies with the remaining parts coming from imported fuels and coal. Bangladesh Oil, Gas and Mineral Corporation (Petrobangla), the flagship organization in the country's primary energy sector is entrusted with the responsibilities of exploring, developing, producing and marketing natural gas as well as extracting coal resources and thus playing a vital role in fuelling the economy.

Despite the slow diversification of energy mix, indigenous natural gas still accounts for approximately 41% of the country's total primary energy and 54% of its total commercial energy. About 60% of total electricity is still generated by burning gas in Bangladesh. Natural gas is also used in fertilizer production, industries, transportation, domestic sector and commercial purposes. Industrialization is the catalyst of rapid economic growth which largely depends on the strength and efficiency of energy infrastructure. With the growing population and per capita income in our country, the demand for energy has been on a sharp rise.

Recent gas reserve estimation, current gas production, consumption rates and future demand projections suggest that known recoverable reserves of natural gas will not be able to cater the growing energy needs of the country alone. Since the onshore gas fields are depleting, Petrobangla is putting its best effort to take up massive hydro-carbon explorations, especially in the Bay of Bengal. To encourage international investment in off-shore exploration, 2D multi-client seismic survey is undergoing and Offshore Bidding Round 2024 has already been announced. Under this bidding round, total 24 offshore blocks (shallow and deep) have been made available for exploration to the IOCs out of 26 blocks. Of which, 11 are shallow covering an approximate area of 62,034 square KM and 15 are deep covering an approximate area of 52,025 square KM. At the same time, Petrobangla is updating the onshore Production Sharing Contract (PSC) to explore the onshore blocks.

Petrobangla is focusing on boosting its domestic gas production to fulfill the growing energy needs. Various projects are undergoing which will add approximately 648 million cubic feet of gas per day (mmcfd) from on-shore gas fields after successful completion of 50 well drilling and workover by 2025. At present, 2D and 3D seismic surveys are underway in different parts of the country. Based on these surveys, Petrobangla has already made a plan to drill 100 wells by 2028, out of which 69 are drilling and 31 are workover.
With the objective of mitigating the shortfall of gas, Liquefied Natural Gas (LNG) is being imported and supplied to the national gas grid after re-gasification through two Floating Storage and Re-gasification Units (FSRU) located at Moheshkhali, Cox’s Bazar with a total capacity of 1,100 mmcfd. Furthermore, steps have been taken to construct more FSRUs and one land-based LNG terminal at Moheshkhali. Petrobangla signed several long term LNG import contracts and it has also signed Master Sales and Purchase Agreement (MSPA) with 23 suppliers to import LNG from the spot market to meet gas demand.

Petrobangla is also managing our limited mineral resources and thus saving a substantial amount of foreign currency. Five coal deposits have so far been discovered in the north-western part of Bangladesh with a reserve of 7,823 million metric tons in total. At present, coal is extracted from the country's lone producing mine at Barapukuria and total coal is used in generating electricity located at the mine mouth. Studies are underway to produce coal from Dighipara coal mine viz a viz expansion of production from existing Barapukuria mine. However, more diverse source of energy supply, efficient utilization of non-renewable fossil fuels and pragmatic demand management are important factors for attaining energy security to meet the challenges of the coming years. Petrobangla is also engaged in extracting granite which is used as construction materials.

With a view to attain a sustainable future and to ensure the efficient use of valuable natural gas, Petrobangla has been implementing schemes to install pre-paid meters and set up meters with Electronic Volume Correctors (EVCs) and encouraging use of energy-efficient appliances in industries. It may be noted that Petrobangla is a major contributor to the national exchequer. At the same time, it is saving a huge amount of foreign currency by substituting the import of energy and construction materials. I am confident that the robust growth attained by the energy sector due to the pragmatic policy taken by Petrobangla will open up a new vista of economic development of Bangladesh.


Chairman
Petrobangla