New gas wells in Bibiyana promise around 1 trillion cubic feet reserves: Nasrul Hamid

Around 1 trillion cubic feet (tcf) of natural gas reserves could be found in newly drilled wells at Bibiyana gas field, said State Minister for Power, Energy and Mineral Resources Nasrul Hamid.

"In 2024, Bangladesh will not face any problem regarding power and energy supplies given the current situation. We are also ready to face challenges even if the energy supply becomes tight," he said speaking to the journalists at the Secretariat on Thursday.

The global energy crisis might deepen if the crisis in the Middle East escalates, which in turn could be more challenging for Bangladesh to overcome, said Nasrul.

Pricing in the power and energy sector is one of several issues on which the government is now working, he said, adding, "The government aims is to bring the power and energy sector out of subsidies within the next several years."

Bangladesh has planned to implement an automated dynamic fuel-pricing mechanism within the next couple of months to make the fuel prices at par with the international market, the state minister said.

He said refined petroleum product prices will be adjusted once monthly under this plan.

Currently, the government sets fuel prices through executive orders as needed.

Discovery of the potential gas reserves comes shortly after oil and gas exploration company Chevron Bangladesh completed drilling its 27th well at the field.

As of 4 January, Chevron currently produces around 1,232 million cubic feet per day (mmcfd) of gas from Bibiyana, according to Petrobangla.

It accounts for around 60% of the total output from local gas fields.

The US-based company operates three onshore fields in the country – Bibiyana, Jalalabad and Moulvibazar