Is the government moving towards an import-dependent energy structure?

AN import-dependent structure bears significant responsibility for the crisis in the country’s energy sector.

Over the last two decades, little emphasis has been placed on gas exploration and extraction from local sources.

Thus, imports of Liquefied Natural Gas (LNG) have been significantly increased.

The current government is once again moving towards the construction of a floating LNG terminal. Meanwhile, plans for three additional terminals have been announced.

Naturally, this raises the question: is the government, like its predecessors, steering towards an import-dependent energy infrastructure?

There is no denying the need to import LNG as an immediate or short-term solution to alleviate the country’s ongoing gas crisis.

Recently, when one of the two existing floating LNG terminals was damaged, the gas supply to the national grid was temporarily reduced to a significant extent.

This situation brings to the fore the need for LNG import as well as construction of related infrastructure.

Viewed in this light, the government’s initiative to construct a new LNG terminal appears logical. However, a closer examination reveals that one cannot overlook the limitations of the country’s financial capacity.

Over the eight years since imports began in 2018, approximately Tk 2.76 lakh crore has been spent on LNG imports and over Tk 48,000 crore has been paid in subsidies.

Despite such massive expenditure, a permanent solution to the gas crisis remains elusive.

Despite the import of costly LNG, industrial units have been shutting down one after another due to the domestic gas crisis, with some operating only partially.

Efforts have been made to manage electricity demand across the country through load-shedding and rationing.

These crises persist. Challenges such as rising international fuel prices, and pressure on foreign currency reserves also have intensified.

Currently, there is a deficit of approximately 1.2 billion cubic feet between the demand for and supply of gas in the country.

To address this shortfall, Petrobangla is implementing a project to drill 50 wells.

However, the expected results are not being achieved. Gas was not found in many of the wells, while production in others has been far below initial estimates.

It is also true that ramping up domestic exploration will not yield gas overnight; discovering new gas fields is a time-consuming process.

Therefore, LNG imports must continue in the short term. However, building LNG terminals will not serve as a sustainable long-term solution.

Ultimately, there is no alternative to enhancing local gas production capacity, even if it takes time.

This requires fostering technical expertise, securing investment, increasing the number of drilling rigs, and establishing coordination with foreign partner organizations.