Asian Development Bank (ADB) Bangladesh Gas Transmission Development Project, Institutional Strengthening of Hydrocarbon Unit (HCU)


Cooperating institutions
Hydrocarbon Unit (HCU) under
Energy and Mineral Resources Division (EMRD)
Ministry of Power, Energy and Mineral Resources (MOEMR )

Goals and objectives
Bangladesh has an extensive need for energy, including gas for power generation. A further development of the country’s gas infrastructure, including an adequate institutional framework, is vital for meeting the increasing demand for commercial energy.

The objective is to strengthen the HCU to become a full-fledged functioning, permanent body in the Ministry, authorized to implement government policies and regulations for upstream activities in the petroleum sector and to promote and supervise private sector activities in the petroleum sector. The objective of establishing the HCU was to split the responsibilities for commercial and regulatory governmental functions. Both functions have previously been the responsibility of the national oil company Petrobangla.

Project period

The project has a total budget of USD 413 million, of which Norway contributes USD 5 million.

The programme is concentrated around the following components:

  • Supervision of license activities
  • Resource policy and management
  • Resource assessment
  • Training and other institutional support activities

Oil for Development:
Mr. Trond Hjørungdal,


Country facts


Official Name
People’s Republic of Bangladesh


Chief of state
President Zillur Rahman

Head of Government
Sheikh Hasina Wajed

156 050 883 (2009 est.)

Petroleum sector, key figures
Average oil production: 6 426 bbl/day (est. 2008)
Annual gas production: 17.3 bill m3 (2008)

Organization of the sector
Ministry of Power, Energy and Mineral Resources (MOEMR)
Energy and Mineral Resources Division (EMRD) to which the HCU reports.
Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) – stateowned oil and gas corporation. Consists of several companies of which three are engaged in exploration and production.


Brief history of the project

The Norwegian development aid to Bangladesh has a history that goes back until the 1980s. Norway contributed in 1997-2005 to strengthening the energy management within the government. The current Norwegian financed project “Institutional Strengthening of Hydrocarbon Unit – Phase II ” carries on important aspects of the previous project.

In 2006, the ADB and the Government of Bangladesh signed the agreement “Bangladesh Gas Transmission and Development Project” with a total financial frame of USD 413 mill. The project “Institutional Strengthening of Hydrocarbon Unit – Phase II ” is a component of this agreement.


Activities in 2009

In 2009, the majority of the tender invitations and subsequent contract awards were effectuated according to the programme.


Key achievements in 2009

The different consultancy missions are in various stages of completion. At this stage it is therefore not yet possible to assess project achievements related to key objectives.