Gas output plummets, costs climb sharply
The country is confronting a growing gas crisis as both domestic reserves and production continue to decline.
Over the past six fiscal years, the number of gas wells has remained largely stagnant, while daily production capacity has fallen significantly.
At the same time, the country’s remaining gas reserves are depleting rapidly, raising concerns over future energy security and industrial supply.
Data from the Hydrocarbon Unit of the Ministry of Energy and Mineral Resources reveal that the number of gas wells in Bangladesh was 112 in 2019-20, rising slightly to 113 in 2020-21, but fluctuating thereafter, standing at 110 in 2024-25.
Daily production capacity has dropped from 2,423.31 million cubic feet per day (MMcfd) in 2019-20 to 1,800 MMcfd in 2024-25. Total cumulative production from discovered fields has reached 21.77 trillion cubic feet (TCF) by 2024-25, while remaining reserves have fallen to 8.15 TCF.
Experts note that slower discoveries of new gas fields, coupled with declining output from older fields, are major drivers of the crisis. Industrial, electricity, and residential demand continues to rise, accelerating extraction and further reducing reserves.
They emphasise that not all underground gas can be recovered: typically, only 60-80% of a field’s reserves are technically and economically extractable. This means the reported 8.15 TCF may not be fully accessible.
At current production rates of 1,800–2,000 MMcfd, Bangladesh can maintain gas supply for roughly 8–10 more years unless exploration intensifies and advanced extraction technologies are deployed.
Bangladesh began importing liquefied natural gas (LNG) in 2018, following a period of limited domestic exploration under the previous government.
Two floating storage and regasification units (FSRUs) were built at Maheshkhali, Cox’s Bazar, and long-term LNG contracts were signed with Qatar.
Supply under these contracts officially began in 2018 and 2026. In 2023, the government also signed a 10-year LNG import deal with Oman.
Global market disruptions, such as the Russia-Ukraine war, have also impacted prices.
For instance, when the international LNG market tightened in early 2022, Bangladesh faced supply difficulties due to a dollar shortage, forcing the country to halt open-market LNG imports for seven months.
Recent conflicts in the Middle East, including the blockade of the Hormuz Strait, have further disrupted supply, forcing the government to purchase spot LNG cargos at more than double the previous price. Sources report that two recent cargos cost 2,300 crore taka, compared with 1,100 crore taka for similar shipments earlier.
To address domestic supply constraints, Petrobangla has announced plans to drill 50 new wells by 2025-26 and 100 more by 2026-28, alongside workover operations across the country’s various gas blocks.
However, offshore exploration has yet to begin, despite previous agreements with multinational firms including ExxonMobil, Chevron, Petronas, TGS-Slumberger, Inpex, and others.
Political delays and contract disputes have hindered progress in deep-sea surveys, leaving Bangladesh dependent on costly LNG imports.
Energy experts warn that immediate action is needed. Dr. Ijaz Hossain, a former BUET professor, stresses that accelerated offshore exploration is essential to reduce import dependence and ensure long-term energy security.
“The next two years are crucial. Funding for exploration now will prevent far greater costs in the future,” he says.
With domestic production declining and imports becoming increasingly expensive, Bangladesh faces a critical juncture in securing its gas supply.
Unless new fields are discovered and production technologies improved, both energy security and industrial stability could be at risk in the near future.
