Securing Bangladesh's Energy Future From Gas Shortages To Strategic Reforms

Bangladesh's crisis-prone energy sector is now critically ill and in desperate need of lifesaving intervention. Energy security has become increasingly uncertain, sounding alarm bells for the country's fragile industrial growth and economic development. Severe shortages in gas and electricity have led to the shutdown of many small and medium-sized industries in recent years. In contrast, large industries continue to grapple with a chronic energy crunch. Foreign direct investment (FDI) and domestic industrial investment have nearly ground to a halt. Not a single large-scale industry has been established in several years.

- By Saleque Sufi

Since the country's liberation, successive governments have come and gone, yet none have addressed the energy crisis with the urgency it demands. Natural gas use began in the world's largest riverine delta during the 1960s, but as of July 2025, Bangladesh remains one of the least explored gas-rich deltas in the world. Significant coal deposits—often referred to as “black gold”—still lie buried underground. Offshore petroleum potential remains virtually untapped, and only about one-third of the onshore areas have been explored. The country's gas-based economy is in steep decline.

Petrobangla's recently published annual report offers a sobering account of the current situation and its short-term plans for gas exploration and extraction. At an information-sharing event organized by Petrobangla for energy journalists, former BUET dean and prominent energy researcher Dr. Ijaz Hossain delivered a highly informative keynote presentation on the nation's critical energy security challenges.

Petrobangla's presentations highlighted alarming system losses in the gas supply chain, largely due to leakage, theft, and pilferage. They also revealed substantial outstanding receivables owed to gas distribution companies. While the agency outlined its current projects and future programs, it also issued a stark warning: at the current rate of consumption, the nation's remaining 8 trillion cubic feet (TCF) of proven gas reserves could be exhausted soon. The current exploration program is unlikely to sustain existing supply levels.