📌 Bangladesh Mineral & Energy Resources: Updated Overview with References

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📌 Bangladesh Mineral & Energy Resources: Updated Overview with References

Writer: Niaz Murshed Chowdhury

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1️⃣ Introduction

Bangladesh sits atop the greater Bengal Basin, one of the largest sedimentary basins in the world (Khan & Muminullah, 1988). Its surface geology is covered by:

• 80% Holocene deposits — young, unconsolidated sand, silt, and clay (Alam et al., 2003).

• 12% Tertiary folded sedimentary rocks, mainly in the eastern hilly regions and Sylhet.

• 8% uplifted Pleistocene terraces, prominent in Madhupur and Barind tracts.

Subsurface explorations have revealed older Palaeocene, Mesozoic, and Precambrian basement rocks (Imam, 2013). These formations hold key mineral deposits: natural gas, coal, limestone, hard rock, white clay, glass sand, and heavy mineral sands (Bangladesh Bureau of Mines & Petrobangla, 2022).

Key reference: Geology of Bangladesh — Alam, M., Alam, M.M., Curray, J.R., et al., 2003.

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✅ 2️⃣ Role of Natural Gas

Natural gas is Bangladesh’s dominant domestic energy source, supplying ~70–75% of commercial energy needs (BPDB Annual Report, 2023). It fuels:

• 60%+ of electricity generation.

• 85% of fertilizer production (BAPEX, 2022).

• Major industrial heating.

• ~15% of household energy.

Gas is cheaper than imported oil and critical for GDP growth (World Bank, 2023).

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📊 Natural Gas Snapshot (2024–25)

Indicator	Figure	Source
Total discovered fields	28	BAPEX 2023
Offshore fields	2	Petrobangla 2023
Active fields	20	Petrobangla
Gas wells	~104	EMRD 2023
Proven recoverable reserves	~20.7 TCF	Hydrocarbon Unit
Probable reserves	~6.4 TCF	EMRD
Daily production	~2,400–2,500 MMCFD	Petrobangla
Demand	~3,000 MMCFD	BPDB
LNG imports (2024)	~1,000 MMCFD	Summit LNG, Excelerate

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📌 Production Trends & Shortages

Bangladesh’s production peaked at ~2,500 MMCFD in 2023. However, demand often exceeds supply by 500–700 MMCFD, requiring LNG imports (IEA Southeast Asia Outlook 2023). Without new discoveries, proven reserves could decline sharply after 2026 (IMF Country Report, 2023).

Chevron remains the top producer (~55% of total output). Major fields: Bibiyana, Titas, Habiganj, Kailashtila.

Key source: Bangladesh Energy Sector Review, World Bank, 2022.

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🔍 3️⃣ Historical Background

Gas exploration began under British India:

• 1908: Indian Petroleum Prospecting Company drilled Sitakunda (GSP, 2022).

• 1955–60: PPL (Pakistan Petroleum Ltd) discovered Sylhet, Chhatak.

• 1960s: Shell discovered Titas, Habiganj, Rashidpur.

• Post-independence, Shell’s fields transferred to Petrobangla subsidiaries (Imam, 2013).

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🔑 4️⃣ Current Gas Sector Challenges

• Depletion: Reserves may last 8–12 more years (ADB 2022).

• Overproduction: Bibiyana’s expansion raises sustainability concerns.

• Import dependency: LNG imports are now vital — adding billions to the import bill (IEA, 2023).

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✅ 5️⃣ Other Petroleum Products

Metric	Volume	Source
Crude oil imports	~1.3 million MT/year	BPC Annual Report
Refined products	~2.7 million MT/year	BPC
Largest refinery	ERL, 1.5 million MT/year	Eastern Refinery Ltd.
Main users	Transport, industry	BPC

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🚙 6️⃣ Compressed Natural Gas (CNG)

Introduced in 1997 to save foreign exchange and reduce urban air pollution (DOE 2022).

Metric	Figure	Source
CNG stations	587	Petrobangla 2023
Conversion workshops	180	DOE
CNG vehicles	~213,000	BRTA Annual Report
% of city buses/minibuses	~75%	BRTA

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🏠 7️⃣ Liquefied Petroleum Gas (LPG)

LPG is vital for remote areas without pipelines (BPC, 2022).

Metric	Volume
Total supply	~95,000 MT/year
Public sector	~22,500 MT
Private sector	~73,000 MT
Estimated demand	~200,000 MT/year

Key source: Bangladesh Energy & Mineral Resources Division Annual Report, 2022.

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📈 8️⃣ How the Gas Crisis is Managed

• New offshore exploration rounds launched (Block DS-12, DS-16).

• Deep-sea survey with foreign partners (ONCG Videsh, Santos).

• LNG imports doubled from 500 MMCFD (2018) to ~1,000 MMCFD (2024).

• Cross-border hydro imports: Bangladesh imports 1,160 MW from India (BPDB, 2024) and eyes new projects with Nepal/Bhutan.

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✅ 9️⃣ Energy Security Outlook

Target	Status (2024)	Vision (2030)
Installed capacity	25,700 MW	40,000 MW
Gas share in power	~50%	40–50%
LNG import share	~20%	30%
Renewable share	~4%	10–12%
Peak demand	19,000 MW	34,000 MW
Cross-border trade	1,160 MW	2,500+ MW

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✅ 10️⃣ Conclusion

Bangladesh’s gas and mineral sectors are vital for its industrial backbone. As domestic gas depletes, a balanced strategy is needed:

• Boost onshore & offshore exploration,

• Expand LNG import capacity,

• Develop large renewables and nuclear,

• Strengthen cross-border energy trade.

Responsible policy, robust investment, and smarter management will help ensure energy security and economic growth for decades to come.

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📚 Key References

• Alam, M. et al. (2003). Geology of Bangladesh. Elsevier.

• BPDB Annual Report, 2023.

• BAPEX Annual Report, 2022.

• Petrobangla Data Book, 2023.

• World Bank. Bangladesh Energy Sector Review, 2022.

• Asian Development Bank (ADB) Country Diagnostic Report, 2022.

• International Energy Agency (IEA). Southeast Asia Energy Outlook, 2023.

• Energy & Mineral Resources Division (EMRD) Reports, GoB, 2023.

• IMF Country Report, 2023.

• Department of Explosives (DOE) Report, 2022.

• Bangladesh Petroleum Corporation (BPC) Annual Reports.

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