Photo : collected
The Ilisha-1 and Tagbi-1 gas well projects in Bhola district, initially scheduled for completion by June 30, 2023, experienced a delay of six months. This delay has led to a cost escalation of Tk 207.59 crore, equivalent to 29.88 percent, bringing the total cost to Tk 902.22 crore.
As per the evaluation report, the projects are anticipated to be finalized by December 31, 2023.
Ilisha-1 has been declared the nation's 29th gas field, revealing a substantial gas reserve recently discovered. Within the overall gas reserve of 3 trillion cubic feet (TCF) in Bhola Island, Ilisha is estimated to contain 200 billion cubic feet. Additionally, the Tagbi-1 well is anticipated to yield a daily gas production ranging between 20 to 25 million cubic feet (mmcfd).
State Minister for Power Energy and Mineral Resources Nasrul Hamid told the Daily Messenger “Over the past six months, the costs of all projects have risen, primarily attributable to economic instability. Consequently, the expenses associated with these projects have also surged. Despite these increases, it's noteworthy that the current price of gas remains lower than the prevailing rates in the global market.”
He underscored the significance of domestic gas, especially considering the impact on fossil fuel availability. Nasrul emphasised, "Due to ongoing conflicts, prices of all types of fuel in the international market have risen. Hence, it is crucial that we utilise our own gas resources to sustain power plants and industrial operations."
In alignment with national interests, the successful exploration of commercial gas through the drilling of two exploratory wells, namely Tagbi-1 and Ilisha-1, along with one appraisal cum development well, Bhola North-2, is poised to augment the country's overall gas reserves. This development is expected to enhance gas production significantly in the Bhola region.
On March 8 this year, Ilisha-1 excavation started in the Maler Hat area of Ilisha union in Bhola Sadar upazila and the drilling was completed successfully on April 24 through the Drill Stem Test in three levels at a depth of 3,475 metres.
Nevertheless, when considering the local context, the commercial value of gas in Bhola is estimated at Tk 6,500 crore. In comparison, if evaluated in terms of the value of imported gas from abroad, it reaches Tk 26,000 crore.
Presently, the country is producing approximately 2300 million cubic feet per day (mmcfd) of gas from 22 domestic gas fields. Additionally, around 700 mmcfd of gas is being imported from abroad to fulfill the demand, to meet the demand of about 4000 mmcfd. Despite these efforts, there remains a deficit of approximately 1000 mmcfd in meeting the overall gas demand.
Apart from Ilisha-2, the two Bhola gas fields have around 200 mmcfd production capacity, while the production hovers between 80-85 mmcfd.
Therefore, around 120 mmcfd surplus capacity remains unused in the eight wells of the Shahbazpur and Bhola gas fields.
With the increased gas production and its utilisation in gas-based industries, there is a positive outlook for the country's economic conditions to improve. The enhanced availability of gas resources can contribute to the growth and development of various industries, potentially bolstering economic stability.
Three well drilling operations in Bhola district in the southern part of Bangladesh are directed to be processed in pursuance of the "Rapid Increase in Supply of Electricity and Energy (Special Provisions) Act 2010".
Due to the lack of pipeline and transmission facilities, the government was unable to supply the surplus gas from the Bhola field to other energy-hungry industrial zones in Dhaka and elsewhere.
The government already has started supplying of gas to the industry by compressed form.
In accordance with the Gas Sector Master Plan, it is imperative for the country to expeditiously address the rising gas demand using the available reserves. Additionally, meeting the augmented demand for industrial gas in the Bhola district necessitates the drilling of new wells, which, in turn, requires a boost in both gas reserves and production. Therefore, the implementation of this project is crucial in serving the national interest by ensuring the country's energy needs are met in a timely and sustainable manner.
Messenger/Disha
