Two-track push for uninterrupted gas: World Bank guarantee sought, two new wells planned at Titas

The government has taken a two-track initiative to strengthen the country's energy security and ensure uninterrupted gas supply for industry and power generation. On one track, it has sought a 350 million dollar guarantee facility from the World Bank to ease financing for liquefied natural gas (LNG) imports; on the other, it plans to drill two new wells at the Titas gas field to raise domestic production.

If the 592 crore taka well-drilling project is implemented, around 30 million cubic feet of gas per day could be added to the national grid. If both initiatives work, they could help stabilise energy supply, manage pressure on foreign currency reserves and raise industry's production capacity.

For the current 2026-27 fiscal year, Bangladesh has proposed 2.77 billion dollars in project financing and 1 billion dollars in budget support from the World Bank. In addition, under the proposed 'Resilience, Reform and Investment Partnership' (RRIP) framework, it has sought an extra 10 billion dollars in financing over the next three years, beyond regular allocations.

As part of this, the government has sought a 350 million dollar guarantee facility from the International Development Association (IDA), the World Bank's concessional arm, for LNG imports. Such a guarantee can make import financing easier by reducing payment risk for lenders and suppliers. However, it is not the same as receiving cash directly; the real benefit will depend on the guarantee's terms and the financing structure.

Under the proposed RRIP framework, there is a plan to spend 4 billion dollars on importing essential goods including fuel oil and fertiliser. In addition, 1.5 billion dollars has been proposed for small and medium industries, 3 billion for banking sector reform, and 1.5 billion for emergency support and co-financing.

Finance Minister Amir Khosru Mahmud Chowdhury said discussions with the World Bank over financing are ongoing, but no final decision has been made yet. A technical team is planned to be formed within the next 60 days. The government's target is to finalise the agreement by June 2027.

Meanwhile, as part of the plan to reduce import dependence by raising domestic gas production, an initiative has been taken to drill two exploratory and development wells named Titas-32 and Titas-33. The project's cost has been set at 592 crore taka.

The project is planned to be placed for approval at the meeting of the Executive Committee of the National Economic Council (ECNEC) on 25 October. Bangladesh Gas Fields Company Limited (BGFCL), a Petrobangla company under the Ministry of Power, Energy and Mineral Resources, will implement the project.

The implementation period has been set from October 2026 to September 2029. Of the total cost, 414.40 crore taka is proposed to come from government financing and 177.60 crore from the company's own funds. The cost was initially estimated at 632 crore taka but was later reduced by 40 crore.

Petrobangla Chairman Abdul Mannan said the two wells are expected to yield around 30 million cubic feet of gas and 18 barrels of condensate per day. According to the project proposal, over 10 years there is a possibility of producing about 100.74 billion cubic feet of gas and 60,444 barrels of condensate.

BGFCL currently supplies about 480 to 485 million cubic feet of gas per day to the national grid from five producing gas fields. Of this, about 330 million cubic feet per day is produced from 23 wells at the Titas gas field. The new drilling plan is based on analysis of three-dimensional seismic survey data conducted at the Titas and Bakhrabad fields between 2010 and 2012. Alongside drilling, the project includes laying gas-gathering pipelines and procuring necessary consultancy services.

The government has set a target of drilling 150 wells by 2031 and another 150 between 2031 and 2035. If implemented, the plan could raise domestic gas production. However, geological conditions and the size of reserves will be crucial in ensuring the expected output from the new wells.

If LNG import financing becomes easier, it may be possible to maintain continuity of gas supply and improve production planning at power plants and factories. On the other hand, gas from the new Titas wells could reduce pressure on imports and save foreign currency.

However, for long-term energy security, alongside import financing it is essential to expand domestic gas exploration, increase production from existing wells and broaden the use of renewable energy including solar power. At the same time, effective use of funds must be ensured, taking into account loan interest, repayment periods and currency risk.

If the possible World Bank support and the new Titas drilling initiative are implemented in a coordinated way, they could help raise the country's energy supply, industrial output and power generation capacity. All eyes are now on the 25 October ECNEC meeting and on progress in the talks with the World Bank.