Bangladesh has approved a major domestic gas exploration programme alongside large-scale power distribution upgrades in the Dhaka–Mymensingh region, marking a significant move to strengthen long-term energy security and support industrial growth.
The approvals were granted at the 51st meeting of the Advisers Council Committee on Government Purchase, held at the Cabinet Division Conference Room at the Bangladesh Secretariat in December 2025. The meeting was chaired by Salehuddin Ahmed, finance adviser to the government.
As part of the initiative, the committee approved a proposal from the Energy and Mineral Resources Division to drill five new gas wells in Bhola—Shahbazpur-5, Shahbazpur-7, Bhola North-3, Bhola North-4 and Shahbazpur North East-1. The wells will be developed through an international tender under a one-stage, two-envelope procurement process on a turnkey basis.
The total estimated cost of the gas drilling project is Taka 907.29 crore, with Sinopec International Petroleum Service Corporation of China recommended as the responsive bidder. Officials said the new wells are expected to significantly boost domestic gas production, reduce reliance on imported fuels and enhance national energy security. Increased availability of locally produced gas is also expected to provide a more stable fuel base for power generation and industrial operations.
Alongside the gas exploration approval, the committee also cleared four major procurement proposals under the revised project titled “Modernisation and Capacity Enhancement of BPDB Power Distribution System (Dhaka–Mymensingh Division)”. The project aims to strengthen and modernise electricity distribution infrastructure across the region.
Under one package, six 33/11 kV air-insulated substations will be constructed and augmented at a cost of Taka 130 crore, with another six similar substations to be built at an estimated cost of Taka 113.82 crore. Under a second package, seven 33/11 kV gas-insulated substations will be constructed and upgraded at a cost of Taka 220.90 crore, followed by another seven substations costing Taka 207.91 crore. Ideal Electrical Enterprise Ltd has been recommended as the bidder for all four lots.
Officials said the combined impact of the gas drilling and power grid modernisation projects would play a critical role in meeting rising electricity demand, improving system efficiency and ensuring a more reliable power supply across the Dhaka–Mymensingh division.
The approvals are particularly significant for Bangladesh’s textile and manufacturing sectors, which have long been constrained by gas shortages and unstable power supply. Expanding domestic gas production while upgrading the distribution network is expected to reduce disruptions, stabilise energy costs and support sustainable industrial expansion.
The government believes the December 2025 decisions represent an important milestone in building a more resilient, self-reliant and future-ready energy ecosystem for Bangladesh.
