Roadmap for Bangladesh From Energy Crisis to Energy Prosperity

In the 1970s, Bangladesh's power generation largely depended on indigenous natural gas.

- Zainul Abedin P.Eng

Energy Secured Bangladesh to Energy Crisis

By the 1990s, approximately 96% of the country's electricity was generated from domestic gas reserves. This self-sufficiency enabled Bangladesh to celebrate National Energy Security Day on August 9 for 10 consecutive years.

Bangabandhu Sheikh Mujibur Rahman's vision for Bangladesh's energy independence was forward-thinking. He recognized the importance of exploring and exploiting the country's fuel resources, leading to offshore oil and gas exploration in the Bay of Bengal. This strategic move was instrumental in Bangladesh's energy self-sufficiency, with around 90% of electricity generated from domestic gas reserves.

Bangabandhu's approach also involved leveraging foreign investment, technology, and expertise to accelerate energy development. His government's efforts were continued by Ziaur Rahman and the BNP government, facilitating international oil companies (IOCs) through production-sharing contracts (PSCs). This collaboration brought much-needed investment, technology, and expertise, helping Bangladesh achieve energy independence.

The assassinations of Bangabandhu Sheikh Mujibur Rahman in 1975 and Ziaur Rahman in 1980 had a profound impact on Bangladesh's energy sector development. The momentum built during Bangabandhu's tenure was lost, and subsequent governments deviated from his vision.

The power generation (Late 1990s-2012) capacity increased rapidly, and new power plants were added faster than gas production growth. Gas production reached a plateau of around 2800 mmcfd (million cubic feet per day) by 2015. A sharp decline in gas production started in 2017. The current production decline rate is approximately 10% per annum. Existing producing wells are expected to dry up within 3-5 years (by 2027). Energy mix shifting with “gas share” decreased from 90% to around 60% and increased reliance on imported energy sources like LNG and coal.