DHAKA – Bangladesh has announced plans to invite foreign firms to explore for offshore gas to meet soaring demand for energy to sustain the nation’s fast-growing economy.

The offshore bidding to explore for gas in the Bay of Bengal will open by year end, energy secretary Nasir Uddin said. It will be the country’s third offshore bidding round.

“Both India and Myanmar have found gas in the Bay of Bengal and we’re confident there will also be major discoveries in the Bangladesh part of the Bay,” Nasir said.

Bangladesh needs to urgently locate new sources of energy.

The government’s energy masterplan forecast that at present rates of consumption the nation’s current gas reserves will run out by 2014-15. Under the plan, the country needs at least US$7.7 billion investment in gas exploration and development to sustain annual economic growth of seven percent until 2025, Nasir said.

Bangladesh, home to South Asia’s biggest gas reserves, was divided into 23 blocks for hydrocarbon exploration after the government amended the country’s Petroleum Act in 1993. The government allowed a second round of exploration for onshore blocks in 1997.

Bangladesh has proven recoverable gas reserves of 15 trillion cubic feet of which 7.1 trillion cubic feet have already been extracted, according to official figures.

Nasir said foreign companies have recently stepped up their exploration drive.
“Cairn Energy will drill a well near a southern Bangladesh island at the end of this year. French energy giant Total will also start exploration work in two blocks near the Bay of Bengal later this year,” he said. – AFP