Govt plans to drill 150 gas wells

The government plans to drill 150 gas wells, establish three to four new liquefied natural gas (LNG) terminals and offer tax incentives for solar power generation as part of efforts to strengthen energy security and attract investment.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury disclosed the plans at a discussion titled “Sustainable Power and Energy: Driving Investment in Bangladesh”, organised by the Foreign Investors’ Chamber of Commerce and Industry (FICCI) at a city hotel on Monday.

The government has also approved the procurement of equipment needed for gas exploration and expects private investors from South Korea, China and the United States to participate in developing new LNG terminals, the minister said.

He said the government had decided to drill 150 gas wells through the Bangladesh Petroleum Exploration and Production Company (BAPEX), alongside exploration under contractual arrangements, as it seeks to boost domestic gas production.

To address the gas shortage, the government plans to establish three to four new floating storage and regasification unit (FSRU) terminals. A new deep-water location near Khulna has also been identified alongside Matarbari, he said.

The proposed facility, with a depth of around 20 metres, would allow large vessels to unload oil and LNG directly, helping develop an energy hub.

Alongside gas exploration, the government is encouraging renewable energy production through tax exemptions and incentives for solar power, including rooftop installations at homes and industrial facilities.

The minister said surplus electricity generated by these systems could be purchased at rates higher than the regular tariff, creating an incentive for wider adoption of solar power.
Reforms to attract investment

The government is also planning reforms in the  banking and revenue sectors, alongside measures to develop the capital market and attract foreign investors.

The minister said the government was restructuring the National Board of Revenue (NBR), separating policy formulation from implementation to reduce conflicts of interest and prevent corruption.

Reforms in the banking sector and capital market, along with the removal of unnecessary regulatory restrictions, would reduce business costs and improve the investment climate, he added.

The government is also considering a special investment fund in Hong Kong’s stock market to attract foreign investors to Bangladesh. Discussions with leading Wall Street investors in the United States had been productive, raising expectations of substantial international investment in the country's capital and bond markets, he said.
Energy security a priority

The minister said the global economic crisis and instability in the Middle East had made energy security a major economic concern.

The government was working to address inherited revenue shortfalls, disorder in the banking sector and capital flight while strengthening energy security and stabilising the economy, he said.

He expressed optimism that the economy and energy sector would gradually stabilise, paving the way for a return to normal economic activity and faster growth.

Chevron Bangladesh President and Managing Director Shu Shiong, Independent University, Bangladesh Vice-Chancellor Professor Dr Mohammad Tamim, Centre for Policy Dialogue Executive Director Dr Nazneen Ahmed and Bangladesh Federation of Chambers of Commerce and Industry Administrator Fazlul Hoque attended the event, along with business leaders, economists and local and foreign investors.