Addressing the Gas Crisis Requires a Multi-Dimensional Energy Strategy
Bangladesh’s gas crisis is no longer a temporary or isolated problem; it is gradually evolving into a structural economic and energy security challenge.
Declining gas pressure in residential areas, inadequate gas supply to industries disrupting production, fuel shortages at power plants, and long queues at compressed natural gas (CNG) stations all indicate deep-rooted policy weaknesses in the country’s energy sector.
The recent disruption caused by an accident at one of the floating LNG terminals in Maheshkhali once again demonstrated how fragile Bangladesh’s gas supply system remains and how heavily it depends on a handful of critical infrastructures.
For decades, Bangladesh relied primarily on its domestic natural gas resources to support industrialization, electricity generation, and household energy consumption. However, rapid population growth, expanding industrialization, rising electricity demand, insufficient exploration of new gas fields, and the natural decline in production from existing fields have significantly widened the gap between domestic supply and national demand. Major gas fields, including Bibiyana, have been experiencing declining production year after year. Meanwhile, investment in onshore and offshore exploration, along with the adoption of advanced exploration technologies, has remained below the required level for many years. Consequently, Bangladesh has become increasingly dependent on imported Liquefied Natural Gas (LNG) to meet its growing energy needs.
LNG imports are capital-intensive, technology-driven, and highly dependent on international markets. LNG is transported by specialized carriers, unloaded at floating storage and regasification units (FSRUs), converted back into gaseous form, and then injected into the national transmission grid. At present, a substantial portion of Bangladesh’s LNG supply is handled through only two floating LNG terminals. As a result, the failure or shutdown of a single terminal can significantly disrupt the national gas supply. Engineers describe this vulnerability as a Single Point of Failure—a situation where the malfunction of one critical facility can jeopardize the entire system. The recent incident has clearly illustrated this risk.
Such dependence creates not only technical vulnerabilities but also significant economic risks. Imported LNG is considerably more expensive than domestically produced natural gas. When international LNG prices rise, electricity generation costs increase, industrial production becomes more expensive, export competitiveness declines, and pressure on foreign exchange reserves intensifies. Consequently, an energy crisis extends far beyond the energy sector, affecting inflation, investment, employment, and overall economic growth.
Bangladesh currently imports LNG through both long-term supply contracts and the spot market. However, prices in the spot market are highly volatile, fluctuating with global demand, exchange rate movements, shipping costs, and geopolitical developments. Therefore, instead of relying excessively on spot purchases to meet short-term demand, Bangladesh should place greater emphasis on long-term contracts, supplier diversification, and effective price-risk management.
The current global geopolitical environment has further amplified these risks. Instability in the Middle East, security concerns surrounding the Strait of Hormuz and the Bab-el-Mandeb Strait, international sanctions, and volatility in global energy markets all have direct implications for import-dependent economies such as Bangladesh. Even minor disruptions affecting major LNG exporters—including Qatar, Australia, and the United States—can trigger significant price increases in international markets.
At the same time, growing competition among Asian countries for LNG cargoes is making the market increasingly volatile. Energy security, therefore, is no longer merely an economic issue; it has become an integral component of foreign policy, diplomacy, and national security.
In Bangladesh, the state-owned Petrobangla is primarily responsible for LNG imports, wholesale gas marketing, and supplying gas to the national transmission grid, while LNG infrastructure is operated through a combination of public and private sector participation. Although this partnership has facilitated access to modern technology and investment, national energy security requires reducing excessive dependence on any single infrastructure or a limited number of operators. Moreover, any allegations, controversies, or political claims regarding the energy sector should be assessed on the basis of official documents, audit reports, contractual provisions, and verifiable evidence rather than political rhetoric or speculation. Evidence-based policymaking remains the most effective approach in such a strategically important sector.
Against this backdrop, Bangladesh must fundamentally reassess its national energy policy.
First, exploration and production of domestic natural gas must be significantly accelerated. Both onshore and offshore exploration, particularly in the Bay of Bengal, should be expedited through modern technologies, timely implementation of Production Sharing Contracts (PSCs), and greater participation by reputable domestic and international investors.
Second, LNG infrastructure should become more diversified and resilient. Dependence solely on floating terminals should gradually be reduced by developing land-based LNG terminals, establishing strategic gas storage facilities, and expanding the national pipeline network. Such investments would strengthen supply resilience during emergencies and infrastructure failures.
Third, diversification of energy sources has become an urgent necessity. Bangladesh should substantially increase investment in renewable energy—particularly solar and wind power—expand cross-border electricity and gas trade, strengthen regional energy cooperation, and initiate research on emerging technologies such as green hydrogen. Simultaneously, equal emphasis should be placed on demand-side management through energy-efficient industrial technologies, smart gas metering, reduction of system losses, and prevention of energy wastage.
Equally important is ensuring transparency, accountability, and competitive governance throughout the energy sector. Major infrastructure projects, LNG procurement contracts, and investment decisions should be based on independent economic evaluations, comprehensive risk assessments, and the broader public interest. Decisions made in the energy sector have far-reaching implications for industrial production, employment, inflation, export competitiveness, and macroeconomic stability.
Bangladesh now stands at a critical crossroads where energy security can no longer be viewed simply as importing more LNG. A sustainable energy future requires a comprehensive strategy built upon seven interrelated pillars: accelerated domestic gas exploration, diversified import sources, resilient infrastructure, strategic gas reserves, expanded renewable energy, efficient demand management, and sound governance.
While addressing the immediate gas shortage remains essential, an even greater priority is the formulation of a long-term, transparent, diversified, and nationally driven energy policy that minimizes excessive dependence on any single infrastructure, supplier country, or technology. Energy security is not merely about ensuring uninterrupted gas or electricity supply; it is the foundation of industrialization, investment, employment, price stability, foreign exchange resilience, and national security. The strategic decisions Bangladesh makes today will ultimately determine the country’s future economic strength and long-term energy security.
(The writer is an Economist, Social and Political Thinker, and an International Representative, Petro Asia Global, Dubai, United Arab Emirates)
