LNG Expansion And Domestic Gas Exploration Are Urgent

Bangladesh's energy crisis is no longer a distant policy concern.

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It is a daily reality for industries, power plants, and households alike. As the new government prepares to take office, it inherits a widening gas supply gap that cannot be closed overnight. Domestic production is declining, drilling efforts are yielding limited results, and import infrastructure remains constrained after key LNG contracts were canceled during the interim period.

Former BAPEX Managing Director Mortuza Ahmad Faruque believes the country must confront this reality with urgency and realism. In a candid conversation with Energy and Power Editor Mollah Amzad Hossain, he argues that without rapid expansion of LNG capacity and a coordinated strategy for domestic exploration, Bangladesh's energy shortfall will deepen, putting industrial recovery and economic stability at risk.

After winning the election, the BNP alliance is set to form the government, with Party Chairman Tarique Rahman expected to assume office as Prime Minister. What challenges will the new administration face in the energy sector at the outset, and what preparations are necessary to address them?

Energy, particularly natural gas, is currently the most pressing challenge. Demand continues to rise, while domestic production is steadily declining. At the same time, imports cannot be significantly increased due to infrastructure constraints.

Gas demand will climb further during Ramadan, the irrigation season, and the summer months, driven by higher industrial consumption and increased power generation needs. Domestic production now stands at about 1,700 MMCFD, while average LNG imports range between 900 and 1,000 MMCFD. As a result, total supply cannot exceed 2,700 MMCFD, compared with the demand of roughly 4,000 MMCFD. Under these circumstances, the crisis cannot be resolved quickly.

There is also no assurance that the ongoing drilling programs will deliver rapid results or even maintain domestic production at its current level.