The Silent Risk in Bangladesh’s Gas Sector: Losing Gas Underground Forever

Bangladesh’s energy debate usually centers on declining reserves, rising LNG imports, and rising electricity and fuel oil costs. While these concerns are real, another critical issue receives far less public attention: the permanent loss of natural gas underground due to inadequate and inef?cient reservoir management. Most people think gas is only ‘lost’ when it is burned, ?ared, or leaked from pipelines and surface facilities.

instead, it happens silently within gas reservoirs when ?elds are produced without proper long-term engineering planning. When reservoirs are not properly managed or technical challenges are not addressed in time, signi?cant volumes of gas can become technically unrecoverable, remaining underground forever. For a country heavily dependent on natural gas for domestic, infrastructural, and industrial needs, this is not merely a technical matter; it is a question of national energy security and economic protection.

the Silent Loss of Gas Beneath the Ground The discovery of gas is only the ?rst step.

ef?cient gas recovery from the ?eld requires strong engineering management throughout the eld’s life.

a portion of the discovered gas can remain unrecoverable if reservoirs are not managed carefully.

this can happen for several reasons: Poorly placed wells or improper well design may leave parts of the gas reservoir untouched. ? Advancing underground water can trap pockets of gas if it is not properly monitored and managed. ? Delayed installation of compression facilities can cause production to decline too early, reducing the amount of gas that can ultimately be recovered.

over time, these problems can leave large volumes of gas permanently trapped underground, with serious long-term consequences.

a simple example shows how gas can be lost underground. Consider a gas ?eld with 200 billion cubic feet (BCF) of gas. With proper management, about 90 percent of this gas, which is around 180 BCF, can be produced. But if the ?eld is poorly managed – such as allowing sand or water to enter the well, ignoring unexplained drops in production, delaying use of compression, or improper monitoring – the recovery may fall to about 50 percent of recoverable reserves or even less.

in that case, only about 100 BCF of gas would be produced, and nearly 80 BCF could remain trapped underground forever. Losing such volumes of gas from multiple ?elds due to poor reservoir management would lead to signi?canteconomic loss for the country. Preventing such losses is precisely what petroleum engineers are trained to do. One of their key roles is to anticipate potential problems before they become critical.

through reservoir monitoring, modeling, and production analysis, petroleum engineers can identify early warning signs and take timely action by adjusting production strategies, improving design, or installing necessary facilities to ensure that the maximum amount of gas is ultimately recovered from the reservoir.

the Oil and Gas Sector is Entering a Sensitive and Challenging Stage Bangladesh’s gas sector is no longer in the stage of easy production. Many major ?elds are now mature and face increasing challenges, mostly of a technical nature.

at this stage, even small mistakes, negligence, or wrong decisions can have large consequences.

in mature ?elds, careful engineering management becomes more important than ever. Globally, new oil and gas discoveries are becoming increasingly complex. Future reservoirs are often deeper, smaller, and technically more challenging to develop and extract. Developing such resources requires careful planning, risk assessment, economic evaluation, and continuous monitoring – precisely these are areas where petroleum engineers provide essential expertise. Companies such as Saudi Aramco, Abu Dhabi National Oil Company, and Qatar Energy have achieved high recovery rates through advanced reservoir monitoring, detailed ?eld modeling, and careful long-term reservoir management.

their heavy investment in petroleum engineering expertise demonstrates that maximizing recovery depends on strong and continuous petroleum engineering oversight. Petroleum Engineers Protect Both Resources and Revenue Petroleum engineers are not only technical specialists; they are also trained to evaluate the economic implications of engineering decisions.

every gas development involves a series of critical decisions that rely heavily on petroleum engineering analysis -from exploration to production.

these decisions require balancing technical performance and long-term economic assessment. Petroleum engineers evaluate reservoir behavior, production potential, and development feasibility to guide key choices in different phases of the whole process, such as: Exploration stage: Assessing reservoir potential, drilling risks, and estimating recoverable resources to determine whether a discovery can be commercially viable. Field development planning: Determining when and how a newly discovered eld should be developed, based on engineering calculations of reservoir performance, production forecasts, and economic feasibility. Production strategy: Deciding whether production should be accelerated or moderated to protect long-term recovery. Facility planning: Determining the appropriate timing for installing a compressor or other surface facilities. Well management: Evaluating whether new wells should be drilled or existing wells optimized. Resource management: Deciding whether to prioritize developing smaller new ?elds or maximizing recovery from existing ones. Without rigorous engineering evaluation, such decisions can lead to lower recovery, higher costs, and reduced long-term value of national gas resources. Strategic Decisions Can No Longer Wait The involvement of petroleum engineers in Bangladesh’s gas sector remains extremely limited compared to global standards.

one major reason is that, for many years, local universities in the country did not produce petroleum engineers. However, a positive change has recently begun -over the past few years, several of Bangladesh’s own universities have started producing petroleum engineering graduates.

to ensure the country’s energy security, several strategic measures must now be taken: First, petroleum engineers must be given an active and institutional role in decision-making, planning, and management of gas elds. Second, regular reservoir monitoring and scienti?c analysis must be strengthened in every gas eld.

third, production management must be strengthened through the timely development and modernization of essential technical infrastructure. Fourth, skilled and talented petroleum engineering graduates from local universities should be effectively placed and utilized in the gas sector without any bias. Bangladesh’s energy future will not depend solely on new gas discoveries or LNG imports. Rather, true energy security will depend on how ef?ciently existing gas ?elds and related resources are managed. With proper reservoir management, it is possible to recover up to 80-90 percent of the gas underground.

therefore, utilizing petroleum engineering expertise at the center of planning and management in the gas sector is no longer optional – it is an essential strategic decision for ensuring Bangladesh’s long-term energy security and economic stability

PM Test-Drives Bangladesh’s First Locally Made EVs, Pledges Govt Support

Prime Minister Tarique Rahman recently testdrove locally manufactured electric vehicles (EVs) and praised the initiative, assuring full government support for the country’s growing EV industry. He visited an exhibition of electric vehicles organized at his of?ce in Tejgaon by Bangladesh Auto Industries Limited, according to Deputy Press Secretary Hasan Shiplu. During the visit, Tarique Rahman personally drove a sports utility vehicle (SUV) and a covered van manufactured by the company. Company representatives informed the Prime Minister that Bangladesh Auto Industries Limited is the country’s ?rst electric vehicle manufacturer. They said the vehicles are fully battery-powered, environmentally friendly, and require no fuel oil, while electricity costs remain comparatively low.

ExxonMobil Sticks to Long-Term Upstream Growth Strategy

Exxon Mobilis continuing its long-term up stream investment strategy despite ongoing market volatility , focusing on production growth, technology deployment and operational ef?ciency. Speaking at CERAWeek 2026, ExxonMobil Upstream President Dan Ammann said global energy demand will continue to rise, supporting the company’s long-term expansion plans. He highlighted the company’s operations in the Permian Basin as a key growth driver, noting that improved recovery technologies could signi?cantly boost production from unconventional reservoirs.

ammann said ExxonMobil is deploying advanced completion technologies, including lightweight proppants, which are already increasing recovery rates by up to 20%.

the company aims to further improve recovery ef?ciency as part of its strategy to strengthen long-term upstream earnings growth.

India Targets 100 GW Nuclear Capacity by 2047

India’s BJP Rajya Sabha MP Harsh Vardhan Shringla said his country aims to expand its nuclear energy capacity to 100 gigawatts by 2047, as a US executive nuclear delegation visited the country. Speaking on 18 May, Shringla highlighted the recent passage of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, calling it the foundation for the planned expansion. ‘In December, Parliament approved the ‘SHANTI Bill,’ which subsequently became the SHANTI Act.

this Act created a framework under which both domestic and foreign investment can be deployed in the nuclear energy sector.

our goal is to scale up nuclear capacity from 8.8 gigawatts to 100 gigawatts by 2047,’ he said. Shringla said India’s fastgrowing economy required reliable baseload power in addition to renewable energy sources, adding that nuclear energy was uniquely positioned to meet that need.

Trkiye Emphasizes Inclusive Climate Finance in Meeting with Loss and Damage Fund Of?cials

Pof. Halil Hasar, Director of Climate Change, met with Mathilde Laurans, Deputy Executive Director of the Fund for Responding to Loss and Damage, and Program Manager Jihyea Kim at the Directorate of Climate Change.

the meeting focused on strategic discussions regarding the operationalization of the Loss and Damage Fund, one of the most signi?cant climate nance mechanisms established to support countries facing the adverse impacts of climate change. Discussions also addressed improving access to climate ?nance and strengthening implementation processes ahead of COP31. Welcoming the delegation, Director Hasar emphasized that COP31 will represent a critical milestone in advancing the Fund from institutional design to practical implementation on the ground. Describing the establishment of the Loss and Damage Fund as a historic achievement of the multilateral climate process, Hasar noted that the consensus reached during the opening day of COP28 played a vital role in building con?dence among parties. ‘The Fund is one of the most important instruments for strengthening international solidarity with countries confronting the destructive impacts of climate change,’ he stated. Director Hasar further stressed that one of the core challenges in climate ?nance remains the timely and effective access to resources. He underlined that the long-term success of the Fund depends on the availability of adequate, predictable, and sustainable ?nancing mechanisms. ‘Under Trkiye’s COP31 Presidency vision, we are committed to supporting a transparent, rapid, and t-for-purpose access framework for the Fund,’ Hasar said. ‘We aim to ensure that COP31 delivers tangible outcomes for those most in need.’ He also reaf?rmed Trkiye’s constructive and inclusive engagement throughout the Bonn climate negotiations, the Pre-COP process, and the Fund’s Board discussions. Referring to the devastating February 6 earthquakes in Trkiye, described nationally as the ‘Disaster of the Century,’ Hasar highlighted the universal nature of climate-related and disaster risks

Back-to-Back LPG Price Hikes Add Pressure on Households

Lique?ed petroleum gas (LPG) prices have been increased again within just 17 days, with the price of a 12 kg cylinder rising by Tk 212 to Tk 1,940.

earlier on April 2, the Bangladesh Energy Regulatory Commission (BERC) had raised the price by Tk 387, setting it at Tk 1,728. With the latest adjustment, the total increase for a 12 kg cylinder in April stands at Tk 599.

in its order issued on April 19, BERC cited higher import costs, including increased freight charges, trader premiums, and rising diesel prices, as the main reasons behind the hike. The regulator noted that freight and premium costs have surged signi?cantly- partly due to tensions involving Iran-leading to higher shipping expenses. While earlier pricing was calculated based on $120 per tonne for freight and premiums, the new rate considers $250 per tonne to ensure uninterrupted LPG supply.

SME Production Plunges by 30% as Energy Crisis, Soaring Costs Hit Hard

Bangladesh’s Small and Medium Enterprise (SME) sector is witnessing a sharp decline in activity, with production down by as much as 30% in recent weeks amid the global energy crisis, rising raw material costs, and frequent load-shedding. Mirza Nurul Ghani Shovon, President of the National Association of Small and Cottage Industries of Bangladesh (NASCIB), told a local newspaper that the situation is becoming untenable for many smallscale manufacturers. ‘The energy crisis has pushed many institutions to the brink of closure.

in many cases, production has already dwindled by 25% to 30%,’ Shovon said.

BANGLADESH ENTERS NUCLEAR POWER ERA

What was a dream over six decades ago is now turning into a reality.

the process started with the loading of fuel in unit 1 of the 2400 MW Roopur Nuclear Power Plant from April 28, a gigantic step to take energy-starved Bangladesh to the world’s elite nuclear power nations. There are now 33 countries which produce nuclear power through 400 reactors accounting for nearly 11% of the global electricity. Bangladesh joins the exclusive club as the 34th nation in the world and the third in South Asia after India and Pakistan. In inaugurating the fuel loading Science and Technology Minister Fakir Mahbub Anam hailed it as a ‘landmark achievement’ and a ‘glorious chapter’ in Bangladesh’s history, heralding the country’s entry into the nuclear era. He rightly emphasized that safety is the ‘?rst priority’ and that all fuel loading activities are being carried out strictly according to international standards. He told the event that after the completion of fuel loading and technical processes, the ?rst unit (1,200 MW) is expected to start commercial generation of 300 MW by late July or early August 2026. He mentioned that the plant will go into full-scale production in stages, aiming for full-capacity operation by the end of 2026 or early 2027. He highlighted that the project represents a major step in building technological capacity, ensuring energy security, and promoting industrialization in Bangladesh.

the minister’s comments are especially welcome.

the BNP government, now into its third month, has not dumped RNPP just because it was started by Sheikh Hasina’s government which had been overthrown by a student-led mass movement two years ago.

it seems the new government is willing to accept the positives of the past government despite political bitterness. RNPP, located in Ishwardi of Pabna along the Padma River, would not have been possible without support from Russia. Divided in two equal units It has a capacity of producing 2,400 megawatts of electricity making up 10 percent of the country’s installed capacity.

it has the sophisticated Reactor Model Generation III+VVER-1200, Fuel type – Uranium enriched to 5%, Fuel supplier TVL (Russia) with operator Bangladesh Atomic Energy Commission.

the Main contractor JSC Atomstroyexport is also from Russia. With a life span of 60 years the cost of the construction has now escalated to USD13b, a lion share of it loaned by Russia. Russia’s state-run TVL Fuel Company, which is providing the fuel, has agreed to take back the spent fuel in addressing a major safety and environmental concern.

the fuel loading may take about 45 days and the reactor core would be warmed up within three months by withdrawing neutron absorbers, according to project of?cials.

electricity will be generated on a trial basis and fed into the national grid within three months. ‘If the commissioning progresses smoothly, we expect to add a minimum of 300 megawatts by July or early August to the national grid. Production will then increase gradually by 10 to 15 percent, reaching the ceiling of 1,200 mw by late 2026 or early 2027,’ Md Anwar Hossain, secretary at the science and technology ministry, was quoted as saying by the Daily Star newspaper.

there is a caveat though. Will the reciprocal trade deal Bangladesh’s interim Yunus government signed with the US just three days before the February 12 national polls stand in the way of RNPP and deprive the people of Bangladesh of enjoying its full bene?ts. The much-maligned agreement has compromised Bangladesh’s trading sovereignty and there is fear that Washington may use it in preventing import of nuclear fuel from Russia because of sanctions imposed on it following the Ukraine war.

the operation of the nuclear plant may be in jeopardy if the agreement prevents the import of uranium or fuel rods from Russia. RNPP is the largest of the country’s mega projects. Some have called it a potential ‘white elephant.’ It has been built despite the criticisms and concerns regarding high ?nancial costs and debt and safety risks. Yet, supporters see RNPP as a cheap and safe source of energy and a way out to cut dependence on import of more expensive fossil fuel.

Fuel Price Adjustment Driven by Global Volatility, Not IMF Pressure: Finance Minister

Finance and Planning Minister Amir Khasru Mahmud Chowdhury has said that the recent adjustment in domestic fuel prices was driven by global market volatility, not by any conditions imposed by the International Monetary Fund (IMF). Speaking to reporters at the Ministry of Finance in Dhaka recently, the minister said the government had delayed increasing fuel prices for as long as possible to protect citizens, even as pressure mounted on national ?nances. ‘The government held off on raising prices despite depleting funds, prioritizing public interest,’ he said. He noted that fuel prices have risen sharply worldwide, citing examples such as the United States-where prices reportedly doubled-and Sri Lanka, where prices increased by around 25 percent.

the minister emphasized that the decision to raise fuel prices was taken independently to manage the upcoming national budget and ease pressure on the treasury.

PM Proposes 10-Member Joint Committee to Tackle Energy Crisis

Prime Minister Tarique Rahman has proposed forming a 10-member committee comprising lawmakers from both ruling and opposition parties to work collectively in the national interest to ?nd a ‘reasonable solution’ to the ongoing energy crisis in the country. The Prime Minister placed the proposal in the Jatiya Sangsad (JS) recently, saying that the committee will include an equal number of ?ve members each from the government and the opposition sides. Speaker Ha?z Uddin Ahmad, Bir Bikram, was in the chair.

the Prime Minister announced names of ?ve treasury bench lawmakers and called upon the opposition to provide ?ve names from their side. The Leader of the House said that the proposed committee would be headed by Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood. Four other treasury bench lawmakers are: State Minister for Power, Energy and Mineral Resources Aninda Islam Amit, ABM Ashraf Uddin Nizan (Laxmipur-4), Moinul Islam Khan Shanto (Manikganj-2) and Miah Nuruddin Ahmad Apu (Shariatpur-3).