The prospects of Bangladesh’s oil and gas industry appear to be on the glowing edge ever since huge reserves of oil and gas deposits have been discovered in its maritime zone. In 2014, Bangladesh was the eighth largest natural gas producer in the Asia-Pacific region. By 2014, Bangladesh discovered 26 gas fields, of which gas has been extracted from 20. According to the Bangladesh government, the country’s gas reserve stood at 27.12 trillion cubic feet, of which 12.96 trillion cubic feet had been used until June 2014.   

 

Natural gas is the most important indigenous source of energy which accounts for 75% of Bangladesh’s commercial energy. The country produces 833 billion cubic feet gas per year and all of it has been domestically consumed. At present, onshore fields meet the entire gas requirement of Bangladesh, but energy experts say production is likely to recede in the next few years. Dozens of Bangladesh’s offshore blocks are located in the Bay of Bengal. The experts believe that the country’s Exclusive Economic Zone in the Bay possesses one of the largest oil and gas reserves in Asia-Pacific.

 

The key domestic players in the energy sector are state-owned Petrobangla and its subsidiary Bangladesh Petroleum Exploration and Production Company (BAPEX). Besides, a number of foreign enterprises, including India’s ONGC Videsh Limited (OVL) are currently engaged in Bangladesh’s hydrocarbon industry. The OVL signed a contract for two shallow-water exploration blocks of Bangladesh in the Bay on February 19, 2014. MORE