PM unveils 5-point plan to tackle gas crisis

Bangladesh’s latest energy strategy reveals a difficult balancing act: the government wants to expand gas supplies quickly enough to ease the country’s immediate energy shortages, while at the same time trying to reverse years of declining domestic exploration and growing dependence on imported LNG.

Prime Minister Tarique Rahman, speaking in Parliament on Wednesday, outlined a five-point plan centred on boosting domestic gas production, strengthening state-owned explorer BAPEX, expanding LNG infrastructure and accelerating exploration both onshore and offshore.

The plan reflects a basic contradiction at the heart of Bangladesh’s energy crisis. New domestic gas fields could provide a more sustainable source of supply, but discovering and developing them takes years. LNG, by contrast, can be brought into the system much faster-but leaves Bangladesh exposed to international prices, shipping costs and global supply disruptions.

According to the Prime Minister, 30 wells have already been drilled or worked over under a programme targeting 150 wells. Those operations have added around 140 million cubic feet per day (mmcfd) of gas to the national grid.

Seven more wells are currently being drilled and are expected to contribute another 85 mmcfd once completed.

The government also plans extensive seismic surveys – 4,500 line-kilometres of 2D surveys and 4,200 square kilometres of 3D surveys – to identify new reserves.

Taken together, the measures suggest that Dhaka is attempting to rebuild the exploration pipeline rather than simply address the current shortage.

But the numbers also illustrate the scale of the challenge. Even the additional domestic production expected from the current drilling programme remains modest compared with the country’s growing demand for gas.

That gap explains why LNG remains central to the government’s strategy.
LNG expansion could deepen import dependence
The government is negotiating with interested companies to establish a floating LNG terminal at Kutubjom in the deep sea off Maheshkhali in Cox’s Bazar. If the project proceeds as planned, regasified LNG could begin flowing by December 2028.

The terminal is expected to facilitate an additional 600 mmcfd of LNG imports within the next two years, according to the Prime Minister.

Feasibility studies are also underway for one or two more floating LNG terminals near Payra or Mongla ports, or along the southwestern coast.

These projects could give Bangladesh greater flexibility in meeting gas demand. But they also raise an important policy question: is LNG infrastructure becoming a bridge to greater energy security-or a permanent substitute for domestic exploration?
The answer will depend largely on how quickly Bangladesh can turn exploration activity into commercially viable domestic production.

BAPEX at the centre of the domestic push
The government is also betting on a stronger role for BAPEX, Bangladesh’s state-owned oil and gas exploration company.

Two new drilling rigs are being procured as part of efforts to increase the company’s exploration capacity.

The move is significant because strengthening domestic exploration requires not only finding reserves but also maintaining the technical and operational ability to drill repeatedly and efficiently.

The government’s offshore strategy is being expanded as well. The Offshore Model Production Sharing Contract (PSC) 2026 has been approved and a bidding round invited, while the Onshore Model PSC is awaiting approval.

If successful, these initiatives could attract international investment and technology into areas where Bangladesh has historically struggled to explore at the necessary scale.

The real test is implementation
The Prime Minister’s announcement is therefore less about a single solution than about managing a transition.

Bangladesh needs additional gas immediately to support power generation and industry. LNG can help fill that gap. At the same time, expanding domestic production is essential if the country wants to reduce exposure to imported fuel over the longer term.

The government’s own figures indicate that it is pursuing both tracks simultaneously.
The challenge will be execution.

Exploration targets, seismic surveys, drilling programmes and new terminals can all expand potential supply, but they do not automatically guarantee reliable gas for factories and power plants.

Delays, financing constraints, geological uncertainty and infrastructure bottlenecks could all affect the final outcome.

He informed the JS that the government will consider open-pit coal mining at Fulbari if extracting its high-quality coal can help ease Bangladesh’s energy crisis and save foreign currency, while stressing that any decision must address the concerns of affected residents, agricultural land and the environment.

Dispute over factory closures adds another layer
The Parliament discussion also highlighted the political sensitivity surrounding the gas shortage.

Responding to claims that 92-or even 200 to 300-factories had closed because of shortages of gas and electricity, Tarique rejected the figures.

He said information cited regarding the closure of around 95 factories had been withdrawn by its source, which later apologised and acknowledged that the information was incorrect. He suggested the figures may have originated from an older report or data from around 2022.

The disagreement matters because the impact of the gas shortage is ultimately measured not only in cubic feet of supply but in industrial production, investment and employment.

Even without accepting disputed factory-closure figures, persistent shortages can raise production costs and disrupt industrial operations.