Bangladesh expects inviting international tenders in the energy sector to draw more global investments to the country. Credit: James Jones Jr/Shutterstock.

In an effort to address the gas crisis impacting industries, Bangladesh’s interim government, through Petrobangla, has announced plans to invite international tenders for offshore gas exploration on 9 December and for onshore reserves in March of the following year.

Petrobangla chairman Zanendra Nath Sarker revealed the strategy at a seminar in Dhaka, highlighting the goal to enhance local gas production and decrease dependence on imported LNG, reported the Business Standard (TBS).

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Zanendra expressed optimism that the initiative would draw more international energy companies to invest in Bangladesh, emulating Chevron‘s involvement in the local energy market.

He also mentioned that from 1 December, the government will permit LNG imports through open tenders, allowing any entity to import LNG from the spot market. Additionally, tenders for new floating LNG terminals will be issued next month.

Power and Energy Adviser Muhammad Fouzul Kabir Khan announced a December tender for transporting gas from a new discovery in Bhola to Dhaka.

While 70 million cubic feet of gas has been found in Bhola, it cannot be brought to Dhaka because there is no pipeline.

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“Interested businesses can participate in the tender and bring Bhola’s gas to Dhaka in the form of compressed natural gas [CNG] or liquefied natural gas [LNG],” he said.

Fauzul Kabir stated that the government anticipates saving Tk3.6bn over the six-month period from January to June by easing a requirement for fuel oil imports. Previously, suppliers were mandated to own a refinery, but this condition has now been removed, leading to expected substantial savings.

Confirming the savings, Bangladesh Petroleum Corporation (BPC) chairman Md Amin Ul Ahsan told TBS: “In the tender for importing fuel oil for the upcoming January-June period, suppliers have offered significantly lower premiums compared to the previous six months [July-December]. This will lead to savings in the next six months.”

“For diesel imports during the Jul-Dec period, the premium was 8.75% per barrel. This time, 14 companies participated in the tender, with the two offering the lowest premiums of 5.18% and 5.44%, which is why this saving will occur,” the BPC chairman added.