Petrobangla sources reported that the country is currently facing a supply shortfall of at least 1 billion cubic feet of gas per day. To reduce this shortfall in the ongoing fiscal year, Petrobangla will purchase 115 LNG cargoes from long-term suppliers in Qatar and Oman, as well as from the spot market.

Petrobangla has planned to import a total of 115 liquefied natural gas (LNG) cargoes to address the gas supply shortage in FY 2025–26. The estimated cost for importing this volume of LNG in the fiscal year has been set at around BDT 580 billion. In contrast, for domestic gas exploration surveys and well drilling, the Annual Development Program (ADP) has allocated a total of BDT 11.29 billion for ongoing and new projects. This means the spending on LNG imports in the current fiscal year will be 51 times higher than the allocation for domestic gas exploration and well drilling. These figures were obtained by analyzing Petrobangla’s LNG import cost estimates alongside the ADP allocations for gas well drilling and exploration survey projects by the Planning Ministry.

However, sources in the Energy Division have confirmed that two separate projects for deep well drilling and gas well drilling in the island district of Bhola have recently been approved. The total cost for these projects has been set at BDT 21.5 billion. Petrobangla officials said that if these amounts are included in the revised ADP, the allocation for this sector will further increase in the fiscal year.

Petrobangla sources reported that the country is currently facing a supply shortfall of at least 1 billion cubic feet of gas per day. As a result, the agency is forced to ration gas supply to various consumers, including fertilizer plants. To reduce this shortfall in the ongoing fiscal year, Petrobangla will purchase 115 LNG cargoes from long-term suppliers in Qatar and Oman as well as from the spot market. The total cost for importing this LNG will amount to BDT 579.28 billion. According to Petrobangla, importing this number of cargoes will allow a monthly supply of a minimum of 800 million to a maximum of 970 million cubic feet of LNG into the national grid during the fiscal year.

Petrobangla’s cost estimation for importing 108 LNG cargoes in the 2025 calendar year shows that the total blended cost of domestic and imported LNG will be BDT 27.59 per cubic meter, while the weighted average selling price will be BDT 22.93 per cubic meter. The price gap, or the difference between cost and selling price, will be BDT 8.66 per cubic meter. Based on this calculation, there will be a deficit of BDT 105.78 billion in the current fiscal year from gas sales. To cover this deficit and improve gas supply, Petrobangla’s gas distribution companies have already submitted proposals to the Bangladesh Energy Regulatory Commission (BERC) to increase gas prices for industrial consumers. The commission is currently reviewing these proposals.

According to Petrobangla sources, LNG imports began in FY 2018–19 to address the country’s gas shortage. In that fiscal year, the total cost of imports amounted to BDT 188.13 billion. With the gradual increase in LNG imports, the import bill exceeded BDT 400 billion in FY 2020–21. In FY 2024–25, LNG import costs remained above BDT 400 billion. For FY 2025–26, Petrobangla has planned to spend BDT 579.29 billion on LNG imports. In the first fiscal year of LNG imports, subsidies totaled BDT 25 billion. In the concluded FY 2024-25, the government provided BDT 89 billion in subsidies for LNG.

To boost domestic gas production, the former Awami League government initiated a plan to drill 50 wells. The project is still ongoing. For domestic gas production and exploration surveys, FY 2025–26’s ADP has allocated BDT 3.41 billion across three projects. However, the government’s total estimated expenditure for these projects stands at BDT 19.64 billion.

ADP data from the Planning Ministry shows that the 3D seismic survey project at the Habiganj–Bakhrabad and Meghna gas fields has a total estimated cost of BDT 4.54 billion. For FY 2025–26, BDT 1.22 billion has been allocated. The project is scheduled to run from January 2025 to June 2027.

Petrobangla is implementing another project to drill four appraisal and development wells at the Titas and Kamta gas fields. The total project cost will be BDT 12.55 billion, with BDT 2.16 billion allocated for FY 2025–26. The project aims to be completed by September 2027.

Sylhet Gas Fields Limited (SGFL), a Petrobangla company, has taken the initiative to drill the Sylhet well number 12 in the current fiscal year. The total cost of drilling this well will be BDT 2.55 billion. For FY 2025–26, BDT 214 million has been allocated for this well. The project is scheduled to run from January this year through December 2026.

To increase domestic gas production, four additional ongoing projects are being implemented. In the current fiscal year, BDT 7.87 billion has been allocated for these projects. This includes drilling Sundalpur-4, Srikail-5, and two exploratory wells, with BDT 4.21 billion allocated in the current fiscal year out of a total project cost of BDT 5.88 billion. For the 2D seismic survey project in Blocks 7 and 9, BDT 1.12 billion has been allocated this fiscal year, while the total project cost is BDT 2.34 billion. For drilling well number 11 at Rashidpur, BDT 838.4 million has been allocated in the current fiscal year out of a total project cost of BDT 2.71 billion. Additionally, Petrobangla is implementing the Dupitila-1 and Kailashtila-9 exploratory well drilling projects, with BDT 1.68 billion allocated this fiscal year out of a total cost of BDT 6.46 billion.

Separately, on August 7, 2025, Bangladesh Gas Fields Company Limited (BGFCL), a Petrobangla subsidiary, signed a contract worth BDT 5.94 billion with the Chinese company CNPC Chuanqing Drilling Engineering Company Limited (CCDC) for drilling two deep exploratory gas wells at the Titas and Bakhrabad gas fields. In addition, in early September, the Executive Committee of the National Economic Council (ECNEC) approved a project for drilling five wells in Bhola. These wells will be drilled by another Petrobangla subsidiary, Bangladesh Petroleum Exploration and Production Company Limited (BAPEX), at a total cost of BDT 15.55 billion.

Regarding the limited budget allocation for domestic well drilling and survey activities, a Petrobangla official, speaking on condition of anonymity, told Bonik Barta, “The government is implementing projects to increase domestic gas exploration and production. New well-drilling projects have been taken up beyond those shown in the ADP. These have already been approved by ECNEC. Once these projects are added to the ADP, the allocation amount will increase further.”

Alongside 50 ongoing well-drilling projects, the government has also initiated plans to drill 100 more wells. The Energy Division aims to start drilling in 2026 and complete the projects by 2028. The total cost is estimated at around BDT 200 billion. These wells will be funded by Petrobangla’s own resources and the Gas Development Fund (GDF).

Due to LNG imports to address the gas shortage, Petrobangla has already accumulated significant debt. The company has been covering its financial expenses by taking loans from both foreign and domestic energy sector companies. Petrobangla owes a total of BDT 280.16 billion to the National Board of Revenue (NBR), the Finance Division, Bangladesh Petroleum Corporation (BPC), International Islamic Trade Finance Corporation (ITFC), Barapukuria Coal Mining Company Limited (BCMCL), and Bangladesh Gas Fields Company Limited (BGFCL). The company has also taken large loans from the GDF to finance LNG imports.

When asked about funding allocations and plans for well drilling in the country, Energy Secretary Mohammad Saiful Islam told Bonik Barta, “Exploration activities have been intensified to increase domestic gas reserves and production. We are using funds from the GDF as well as increasing allocations from the government. As drilling activities expand in the coming days, we are also making efforts to increase financing.”

News Link: Bangladesh spends 51 times more on LNG imports than on gas exploration