BD faces rising risks from imported gas, climate threats: IEA
Business Report:
Bangladesh’s increasing reliance on imported liquefied natural gas (LNG) could pose serious risks to the country’s economy and energy security over the next decade, according to the International Energy Agency’s (IEA) World Energy Outlook 2025, published on Wednesday.
The report highlights that Bangladesh, once self-sufficient in natural gas, now depends on imports for nearly one-fifth of its gas consumption. The IEA projects that by 2035, LNG imports by Bangladesh and Pakistan will reach around 80 billion cubic meters (bcm) a 60 percent increase from 2024 levels.
Bangladesh faces three key challenges: rising energy demand, declining domestic gas reserves, and climate-related risks that threaten energy infrastructure. The IEA noted that high import prices, limited storage and regasification facilities, and vulnerability to extreme weather make the current LNG-dependent model economically and environmentally unsustainable.
Bangladesh’s coastal LNG terminals remain exposed to climate shocks. In 2023, cyclones and flooding disrupted LNG supplies, forcing temporary shutdowns of several power plants. The IEA warned that without investments in climate-resilient infrastructure, gas supply reliability will remain uncertain.
The report also highlighted the human and economic toll of air pollution. Globally, pollution caused more than 16,000 premature deaths daily in 2024, while South Asia suffered losses exceeding 11 percent of regional GDP. The IEA stressed that a transition to renewable energy is the most effective way to reduce pollution.
Although Bangladesh achieved universal electricity access in 2022, millions of households still rely on firewood and biomass for cooking, contributing to indoor air pollution. The agency estimates that clean cooking fuels could reach universal access in developing Asia, including Bangladesh, by 2033 with government investment and incentives for electric stoves.
The IEA forecasts that average LNG prices in Asia may fall to around $7.5 per million British thermal units (MBtu) during 2030-2035 about 40 percent lower than current levels. While lower prices could make LNG more attractive, infrastructure bottlenecks and financing challenges may limit demand growth.