As the country grapples with an escalating energy crisis, the urgent need to explore and develop the country’s own gas reserves has never been clearer.
In a report published in this newspaper on Sunday energy experts have raised alarms over the rising dependence on imported liquefied natural gas (LNG), which has surged dramatically in recent months.
The government’s issuance of tenders for 23 LNG cargoes since September — up from just eight last year —highlights a troubling trend that could jeopardise the nation’s dollar reserves.
We agree with the experts that prioritising domestic gas exploration could significantly reduce our reliance on costly LNG imports.
While it is essential to meet immediate energy demands through imports, the long-term solution lies in tapping into our own resources.
The previous administrations’ neglect of gas field exploration has left us vulnerable, and the current government must act decisively to rectify this oversight.
In fact, the surge in LNG imports, driven by declining domestic production, is a symptom of a deeper issue within our energy sector.
Despite the interim government’s efforts to stabilise power generation, which has seen a modest increase to an average of 12.5 gigawatts in November, the challenges remain daunting.
The ongoing reliance on imported LNG, particularly at spot prices exceeding $13 per million British thermal units, is unsustainable and could deter potential investors.
Moreover, the state-owned Rupantarita Prakritik Gas Company Ltd (RPGCL) remains the sole LNG importer, raising concerns about monopolistic practices in the market.
The recent shift towards more transparent procurement regulations is a step in the right direction, but it is crucial that RPGCL adheres to these guidelines to foster competition and attract a broader range of suppliers.
As the country prepares for the Bangladesh Offshore Bidding Round 2024, the opportunity to revitalise oil and gas exploration is at hand. With 24 blocks on offer, the government must encourage participation and investment in these ventures.
The extended deadline for bids until December 2024 provides a crucial window for potential investors to engage with our energy sector.
Our view is that while immediate LNG imports may be necessary, the focus must shift towards sustainable energy solutions.
By investing in domestic gas exploration, Bangladesh can secure its energy future, reduce reliance on imports, and ultimately strengthen its economy.
Our energy independence depends on the efforts exploring own ability, wasting no time.