Looming Energy Sector Challenges Ahead of Bangladesh's 2026 Election

Ground realities strongly suggest that the next general election will likely take place in early 2026.

- Saleque Sufi

The Chief Adviser has already announced the interim government’s plan to hold the election in early February, ahead of the holy month of Ramadan. The Chief Adviser's office has reaffirmed its commitment to ensuring a free, fair, and credible election despite ongoing challenges. If all goes according to plan, an elected government will assume office in early 2026.

Among its foremost challenges, the new administration will have to confront the worsening energy and power supply situation. If the weather does not remain favorable, as it has recently, managing power and energy supplies could become extremely difficult. The interim government, which inherited a crisis-prone energy sector, managed to keep things moving but without significant breakthroughs.

No major gas discoveries were made, and existing reserves continued to deplete. The interim government canceled the contract for a third FSRU and, over the course of a year, failed to initiate new LNG import infrastructure—either floating or land-based. It also suspended the engagement of three drilling contractors for development wells, as these contracts had been awarded under the Speedy Power Supply Special Act. However, one new contract was signed with a Chinese company to drill in deeper, high-pressure zones at Titas and Bakhrabad Gas Fields. Progress on the 50- and 100-well projects has so far been disappointing.

The government also failed to decide on evacuating stranded gas from Bhola Island to the national grid and did not pursue exploration at Chattak or in the Chittagong Hill Tracts (CHT). No new offshore or onshore bidding rounds are expected soon. As a result, ensuring short-, medium-, and long-term gas supply security will remain a key challenge for the next government.