Interim govt’s first Ecnec meeting to focus on gas exploration, pipeline projects

Highlights:

• Proposed budget for two new projects stands at Tk988.40 crore
• The projects are drilling of two evaluation-cum-dev wells and two exploration wells 
• Bapex will implement the project by June 2026
• Approved cost for the three existing projects, for which revisions have been suggested, was Tk3,717.38 crore 
• Revised expenditure for these projects has been proposed to rise 121%

The interim government will hold its first Ecnec meeting today, focusing on proposals for two new projects related to exploring and developing new gas wells to meet demand and supplying gas to industrial areas, alongside three revised projects.

The Executive Committee of the National Economic Council (Ecnec) meeting will be held at the Chief Adviser's Office, with Chief Adviser Professor Muhammad Yunus presiding, according to Planning Commission sources.

The proposed budget for the two new projects stands at Tk988.40 crore. Meanwhile, the approved cost for the three existing projects, for which revisions have been suggested, was Tk3,717.38 crore. The revised expenditure for these projects has been proposed to be increased by 121%, bringing the total to Tk8,219.3 crore.

The two new projects to be presented at the Ecnec meeting include the drilling of two evaluation-cum-development wells (Sundalpur-4 and Srikail-5) and two exploration wells (Sundalpur South-1 and Jamalpur-1) at a cost of Tk588.40 crore. The Bangladesh Petroleum Exploration and Production Company Limited (Bapex), a subsidiary of Petrobangla, will implement the project by June 2026, according to Planning Commission sources.

If commercial gas is discovered after drilling the proposed four wells, the estimated Gas Initially in Place (GIIP) will increase by 620 billion cubic feet (BCF), of which recoverable reserves will be 442 BCF.

Subject to gas availability, the potential daily production of the Sundalpur-4, Srikail-5, Sundalpur South-1, and Jamalpur-1 wells will be 10, 20, 15, and 10 million standard cubic feet (MMscf), respectively, with a total daily production of 55 MMscf from the wells. The project proposal states that increased domestic gas production through this project will reduce costly LNG imports and save a significant amount of foreign exchange.

Meanwhile, a proposal to increase the cost of the Bakhrabad-Meghnaghat-Haripur gas transmission pipeline construction project will also be presented at the meeting. The approved cost of the project, initiated in 2021, was Tk1,304 crore, and a revised cost of Tk1,570 crore has been proposed, reflecting a 20% increase.

However, the project cost was previously increased to Tk1,500.14 crore through special revisions. According to the project proposal, the increase is due to rising costs in gas pipeline construction, facility development, land development, and revenue sectors.

In addition to the increased expenditure, it is also proposed to extend the project duration by two years, with a new completion date set for June 2026.

Altogether six power plants are set to be built in the Meghnaghat power hub area, both in the public and private sectors, with plans to supply approximately 550 MMscfd of gas to power plants, economic zones, industries, commercial establishments, and other customers in Ghazaria, Haripur, Siddhirganj, and Araihazar.

The gas will be transported from Bakhrabad in Cumilla to Haripur via Meghnaghat in Narayanganj through a 50 km long, 42-inch diameter gas transmission pipeline, operating at 1,000 psig and capable of transmitting up to 1,000 MMscfd per day.

In addition to the power plants, economic zones and industries in the Meghnaghat hub and surrounding areas like Haripur, Siddhirganj, and Araihazar, the project will also include the construction of transmission infrastructure to ensure reliable gas supply to institutions, commercial entities, and other customers in these regions.

Another new project to be placed for approval is the Sustainable Social Services Project (Phase II) in Chattogram Hill Tracts at a cost of Tk400 crore. Unicef will donate Tk100 crore to this project.

According to Planning Commission sources, a revised proposal to increase the budget for the land acquisition project aimed at upgrading the Faridpur-Bhanga-Barisal-Patuakhali-Kuakata national highway to four lanes will be presented at the Ecnec meeting.

The project was initially approved by Ecnec in 2017 with a budget of Tk1,867.86 crore, but the newly revised proposal suggests an increased outlay of Tk5,899.66 crore.