Efforts to build a pipeline to utilise gas from the island district of Bhola began in 2018 with a plan to construct a 102-kilometre pipeline from Bhola through Barisal to Khulna. The project’s initial estimated cost was BDT 6 billion. The 24-inch-diameter pipeline was designed to have a daily gas supply capacity of 350–400 million cubic feet, which is close to the current supply capacity of an LNG terminal.

The project was not implemented at the time due to concerns over economic risks, indecision, and lobbying and negotiations by the LNG import lobby close to the ousted Awami League government. Energy experts say that had the pipeline project been implemented, gas supplies would have increased and vigorous efforts to explore new gas reserves in Bhola would have begun. Meanwhile, constructing the same pipeline now would cost at least BDT 35–40 billion.

During the tenure of the ousted government, many mega projects were implemented to boost economic activity in the country, such as the Karnaphuli Tunnel, Matarbari Power Plant and Payra Port. Despite the huge amounts of money spent on these projects, they are currently failing to generate the expected financial benefits, turning into “white elephant” projects for the government.

The Bhola gas pipeline project, which could have been built with an investment of just BDT 6 billion, was kept in limbo for years. As domestic gas production has declined, LNG imports have gradually increased. Energy experts believe this has also led to higher energy costs, putting the country’s industrial sector, power generation and fertiliser factories at greater risk.

But the previous Awami League government constructed the Karnaphuli Tunnel at BDT 100 billion, saying it would transform the port city into a “One City, Two Towns” model like Shanghai. Despite the feasibility study projecting substantial profits, the government has been incurring losses since the project was completed; even the maintenance costs are not being recovered from toll revenues.

The Awami government also developed Payra Deep Sea Port at a huge cost despite knowing that it would not be economically viable. More than BDT 73 billion has so far been spent on the project. Yet neither the volume of vessel traffic nor the level of trade expected after its completion has materialised. A scheme was meanwhile implemented from April 2021 to April 2024 for dredging and maintaining the port’s Rabnabad Channel, costing BDT 65.35 billion. The work was financed using the country’s foreign exchange reserves. The then government invested in the project through the Bangladesh Infrastructure Development Fund (BIDF), which was established in 2021 using funds from the central bank’s reserves.

The import of coal for the large power plants in the area has also encountered complications.

Discussions about constructing a pipeline to utilise Bhola’s gas date back at least 15 years. If the project is implemented now, several times more will have to be spent on foreign consultants, project materials and technology. Regardless of which route is selected for the pipeline, the cost could range from a minimum of BDT 35 billion to as much as BDT 80–90 billion.

The ousted Awami League government’s dithering over Bhola’s gas continued even during the tenure of the former interim government. It too failed to take an effective decision on the Bhola–Barisal–Khulna pipeline. Due to bureaucratic complications, it decided to change the route and construct a Bhola–Barisal–Dhaka pipeline. The project was not ultimately initiated because of indecision over securing substantial financing, conditions attached to loans from foreign agencies, and the associated economic risks.

According to the Energy Division sources, the current government has undertaken a master plan to utilise Bhola’s gas. Under a cluster-based plan, the government wants to develop a realistic economic zone featuring a fertiliser factory, power plants, a technical university, a hilsa conservation centre and gas-based industries. Through this initiative, it aims to bring Bhola and the entire southern region into the country’s broader development framework.

Some industry insiders and energy experts have blamed the LNG business for the indecision over Bhola’s gas during the Awami League government’s tenure. According to them, the draft for constructing the Bhola gas pipeline was prepared in 2018, the same year the decision was made to import LNG into the country. When LNG imports began that year, they were viewed as a major solution to the supply shortage of domestic gas.

There are allegations that former Awami League government Energy Adviser Tawfiq-e-Elahi Chowdhury, State Minister for Power, Energy and Mineral Resources Nasrul Hamid, and a major lobby in the energy sector played a significant role in reducing domestic gas production while promoting LNG imports. According to the allegations, their approach ultimately prevented the Bhola gas pipeline project from being implemented. They instead began efforts to increase LNG imports by allowing domestic gas production to stagnate. A huge amount of foreign currency has consequently flowed out of the country, while the gas sector has accumulated substantial liabilities and debt.

Yet, despite concerns that gas supplies would not be available, gas pipelines were constructed in northern Bangladesh, particularly along the Sirajganj–Bogura–Rangpur route. A long pipeline from Bheramara in Kushtia to Aranghata in Khulna was built, along with several gas-fired power plants, but these have been left idle. The country has had to take both domestic and foreign loans for these projects, while they have failed to generate any meaningful economic benefits from the pipelines.

According to Petrobangla data, Bangladesh spent BDT 2.77 trillion on LNG imports during the eight years from fiscal year 2018–19 through 2025–26. During the same period, the government had to provide an additional BDT 480 billion in subsidies to the gas sector. Even so, the country’s gas shortage could not be reduced. LNG was imported by raising gas prices and using funds established for gas exploration. Petrobangla is now purchasing LNG with loans obtained from foreign lending institutions.

Had a gas pipeline been constructed in Bhola, a significant portion of the huge expenditure on LNG imports could have been saved. The country could also have reduced its dependence on imports and strengthened energy security.

Gas was discovered in Bhola in the 1990s. There are currently three gas fields there. Although the potential reserves in these fields are estimated at 2 trillion cubic feet (TCF), recoverable reserves are around 1.5 TCF. Speaking to officials of Bangladesh Petroleum Exploration and Production Company (BAPEX), it was learned that the wells currently in production have the capacity to supply 120 million cubic feet of gas per day. But BAPEX is currently extracting 74 million cubic feet per day. To increase gas production in Bhola, an initiative has been taken to drill 10 new wells. A Chinese company will drill five wells, while BAPEX itself will drill the other five.

The country’s gas shortage has now become acute. Considering global geopolitical instability, higher LNG prices on the spot market, and LNG imports from long-term sources, energy experts now view extracting Bhola’s gas and transporting it through a pipeline as the most cost-effective solution. They say Bhola’s gas can be brought to the mainland in several ways. But among these alternatives, they consider constructing a pipeline to be the most economically viable option.

Energy expert and Vice-Chancellor of Independent University, Bangladesh, Professor M Tamim told Bonik Barta, “The idea that a pipeline wouldn’t be profitable given the volume of gas reserves in Bhola has largely led authorities to back away from initiatives at various times. There was also indecision on the part of successive governments. But given the current circumstances, a gas transportation project through a pipeline from Bhola would be the most profitable option.”

He said there are broadly four ways to utilise Bhola’s gas. “First, CNG; second, LNG; third, a pipeline; and fourth, generating electricity by constructing power plants there. But given the current circumstances, considering global gas prices and the plan to increase domestic production, the gas must be utilised in one way or another,” he said.

According to BAPEX sources, gas has been found in every well drilled in Bhola so far. Geologists say that gas is present in Bhola and that the area has significant potential for additional reserves. The success rate of gas discovery through well drilling is also 100 percent. So the notion that a pipeline would not be profitable or that gas would not be available is unrealistic. Experts say the previous government’s reluctance to increase domestic gas production and the interests surrounding the import business were major reasons behind the situation.

Several former senior officials of Gas Transmission Company Limited (GTCL) and Petrobangla were aware of why various plans for a pipeline to transport Bhola’s gas failed to move forward. Two such officials spoke to Bonik Barta on condition of anonymity. They said plans were developed between 2018 and 2024 to construct pipelines along several routes to utilise Bhola’s gas. Some of these plans remained merely at the proposal stage, while others remained confined to paper.

According to the officials, various quarters engaged in lobbying and negotiations in favour of taking the easier route of importing gas rather than increasing domestic gas supplies. Consequently, the Energy Division, Petrobangla and GTCL could not reach any final decision; rather, years were spent delaying the process, leaving Bhola’s gas resources unused.

There are two plans for utilising Bhola’s gas, according to Petrobangla sources. The first involves constructing a 205-kilometre pipeline along the Bhola–Barisal–Khulna route. Once gas reserves increase, the plan is to expand connectivity with Dhaka via Bhola–Barisal–Gopalganj. But under the government’s current plan, the 205-kilometre pipeline project to transport Bhola’s gas to Khulna is being advanced.

GTCL will implement the Bhola–Barisal–Khulna pipeline project. Speaking to officials of the organisation, it was learned that the preparation of a Development Project Proforma (DPP) is currently underway for constructing a 96-kilometre, 24-inch gas pipeline from Bhola to Barisal. Route surveys, environmental assessments and a feasibility study are underway for the 109-kilometre Barisal–Khulna section.

When contacted for an update on the latest progress of the pipeline project and GTCL’s related activities, the organisation’s Managing Director (MD), Engineer Md Harun Bhuiyan, did not provide any comment.

Asked about the Bhola pipeline project, Petrobangla Director (Operations and Mines) Engineer Md Shoaib told Bonik Barta, “Alongside drilling new wells to increase domestic gas production, plans are also being developed to determine how Bhola’s gas can be brought into industrial use as quickly as possible. GTCL is particularly working on how Bhola’s gas can be connected to the national grid amid the current gas shortage. This is part of Petrobangla’s plan to increase gas production and supply.”