Energy security key to stable growth: Business leaders

Reza Mahmud :

In the face of energy crisis, business leaders urged the government to cope with the opportunities in this sector for a strong national economy and stable growth.

They said energy security is vital for economic growth, social well-being, and political stability. A country with its own energy resources or strong investments in alternatives (like renewable energy) reduces import dependence and strengthens stability.

Industries such as textiles, cement, and fertilizer rely on uninterrupted electricity and gas supply. Any disruption halts production, hurting exports, jobs, and growth. Investors are also reluctant to commit without guaranteed supply, reducing FDI. Though energy self-sufficiency is costly and time-consuming, its benefits-economic independence and protection from global price shocks-are immense.

Industry leaders highlighted the urgency of energy security. ICCB President Mahbubur Rahman, BGMEA President Mahmud Hasan Khan Babu, and FBCCI Vice-President candidate Sakif Shamim stressed that Bangladesh must prioritize energy self-sufficiency by exploring domestic resources and expanding renewable energy.

Self-sufficiency means ensuring reliable energy supply while reducing reliance on imports. This requires exploration of gas, coal, oil, and renewables like solar, hydro, and wind. Greater investment in these areas will lower dependence on costly fossil fuel imports.

ICCB’s Mahbubur Rahman warned that gas and electricity shortages are crippling industries, with many factories facing closure. He urged immediate exploration of new gas fields, adoption of advanced technologies, and increased renewable energy use. Considering these hurdles, he also called for a six-year extension to Bangladesh’s LDC graduation deadline to prepare infrastructure.

BGMEA’s Mahmud Hasan Khan Babu emphasized that uninterrupted gas and power are critical for the RMG sector to retain its U.S. market share. He warned that domestic reserves could be depleted in 7-8 years, forcing the country to spend $8-9 billion annually on LNG imports. Currently, two floating LNG terminals operate, but infrastructure expansion is essential.

Sakif Shamim highlighted how rising global fuel costs strain reserves and raise production costs. He stressed that Bangladesh must explore offshore gas reserves through greater investment and partnerships while also developing renewable energy. He noted that 47% of total power generation capacity is gas-based, but supply shortages leave 3,000 MW of capacity idle. Daily demand is 3,800 million cubic feet, while supply is only 3,000 million.

Bangladesh’s gas supply comes from domestic fields and LNG imports. But despite high costs, many factories cannot run due to insufficient supply. LNG is often bought from the spot market, which is costlier than long-term contracts.

Two floating terminals at Maheshkhali process imports, but they are not always fully operational. Shamim suggested building permanent, land-based LNG terminals with greater capacity and lower maintenance costs, along with expanding the pipeline network for long-term contracts.
No large gas fields have been discovered in 20 years, as BAPEX lacks capacity.

Despite winning maritime boundary disputes, offshore exploration remains stagnant, while Myanmar extracts gas nearby. Shamim stressed that urgent agreements with international companies are needed for deep-sea exploration.

He also noted inefficiencies in oil-based power plants. Rising global oil prices forced diesel plants offline, while many furnace-oil plants cannot operate due to fuel shortages-an outcome of import dependence rather than domestic exploration.

According to Shamim, energy shortages now pose Bangladesh’s biggest economic risk, disrupting industry alongside inflation, slower growth, rising debt, and unemployment.

He urged strengthening BAPEX to drill new wells and boost production, while partnering with foreign firms for offshore exploration.

At the same time, Bangladesh must reduce reliance on fossil fuels by prioritizing renewables. Expanding solar, wind, and nuclear power will ensure long-term stability.