DHAKA, July 22: Policymakers, energy experts, business leaders and development partners have called for accelerated domestic gas exploration, greater private sector participation, stronger LNG infrastructure and a predictable regulatory framework to ensure Bangladesh’s long-term energy security and support its transition to a sustainable energy system.
The recommendations came at the “Bangladesh’s Energy Security and Transition” Policy Conclave, organized by Bonik Barta at the Pan Pacific Sonargaon Hotel in Dhaka on Wednesday. More than 500 participants, including government officials, industry leaders, energy specialists, development partners and representatives from financial institutions, attended the event.
Domestic gas exploration must be a priority
Addressing the conclave as the chief guest, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud said Bangladesh had focused heavily on expanding electricity generation over the past 17 years while paying inadequate attention to developing domestic fuel resources.
He noted that although the country has developed around 28,000 MW of power generation capacity, the lack of adequate fuel supply has prevented the full utilization of that capacity.
“Not a single new gas well was drilled over the past 17 years. As a result, Bangladesh has become increasingly dependent on imported energy,” he said.
The adviser also pointed to the country’s limited LNG import infrastructure, noting that one of the two floating storage and regasification units (FSRUs) recently suffered a technical failure, leading to reduced gas supply across the country.
He stressed that increasing domestic gas exploration and production, alongside expanding LNG infrastructure, is essential to strengthening Bangladesh’s energy security and preventing future supply disruptions.
Minister favours greater private sector role in power distribution
Iqbal Hasan Mahmud said the government is working to create a more investment-friendly environment and wants to expand private sector participation in the energy sector.
He expressed his personal view that while the government should focus on power generation and bulk electricity supply, electricity distribution could gradually be managed by efficient private operators, citing successful examples from Kolkata, Mumbai and Delhi in India.
BERC chief highlights declining domestic gas production
Bangladesh Energy Regulatory Commission (BERC) Chairman Jalal Ahmed said domestic natural gas production has declined significantly—from around 2,600-2,700 million cubic feet per day (MMcfd) in 2016-17 to about 1,700 MMcfd today.
He also expressed concern over the lack of offshore exploration, noting that while Myanmar and India have recently discovered substantial offshore gas reserves, Bangladesh has yet to complete comprehensive exploration in the Bay of Bengal.
Industry seeks policy certainty
Speaking during a panel discussion, Azam J. Chowdhury, Chairman of East Coast Group, stressed the importance of transparency and stakeholder consultation in policymaking.
He criticized recent changes to customs and tax incentives for the solar sector, saying the lack of policy consistency has undermined investor confidence.
He also called for a predictable regulatory framework to ensure uninterrupted energy supply for industries, arguing that investors need certainty before committing significant capital.
World Bank urges reduction of import dependence
Jay Pym, World Bank Division Director for Bangladesh and Bhutan, described energy as a key foundation for private investment, economic growth, employment and competitiveness.
He noted that Bangladesh currently imports around 30 percent of its natural gas requirements, 95 percent of its oil and 90 percent of its coal, making the economy highly vulnerable to global price volatility and supply chain disruptions.
He said restoring domestic gas production, reforming costly power purchase agreements and improving the financial sustainability of the energy sector are critical priorities.
Reliable energy supply vital for industrial competitiveness
Simin Rahman, Chief Executive Officer of Transcom Group and Vice-President of the Metropolitan Chamber of Commerce and Industry (MCCI), said the biggest challenge for industries is not simply energy availability but reliable, high-quality electricity supply.
Frequent power outages, voltage fluctuations and rising energy costs are disrupting industrial production, increasing operating expenses and weakening Bangladesh’s global competitiveness, she said.
Call to use government land for renewable energy projects
Mahbubur Rahman, President of the International Chamber of Commerce (ICC) Bangladesh, urged the government to make unused public land available for large-scale solar power projects instead of relying primarily on rooftop solar installations.
He said ensuring energy security and regulatory certainty is essential to attracting both domestic and foreign investment.
Gas shortages putting bank financing at risk
Trust Bank Managing Director Ahsan Zaman Chowdhury said prolonged gas shortages have placed significant industrial investments at risk, revealing that approximately Tk 70-80 billion in Trust Bank’s financing has been affected because many industrial clients are unable to operate at full capacity.
He warned that continued disruptions could increase non-performing loans in the banking sector.
Other speakers at the conclave included former Power Grid Bangladesh PLC Chairman Prof. M. Rizwan Khan, BUET Vice-Chancellor (Academic) Prof. Abdul Hasib Chowdhury, Bangladesh Sustainable and Renewable Energy Association President Mostafa Al Mahmud, former IDCOL Managing Director Alamgir Morshed, Acting CEO of Standard Chartered Bangladesh Md. Enamul Haque, and Omera Renewable Energy Limited CEO Masudur Rahim, among other leading stakeholders from Bangladesh’s energy sector.
