Bangladesh Faces Years of Dependence on Imported LNG

The era of cheap domestic gas in Bangladesh is coming to an end, according to Energy Minister Iqbal Hassan Mahmood Tuku. The country will remain dependent on imported liquefied natural gas (LNG) for years due to declining domestic production and limited regasification capacity.

Tuku said the government is working to expand LNG import and storage capacity, revive domestic oil and gas exploration, and diversify energy sources through renewables, coal, and nuclear power. The minister emphasized that the current infrastructure limits how much LNG can be imported, making it necessary for Bangladesh to rely on LNG imports.

The country's reliance on LNG has already increased significantly, with over 35% of gas supply coming from imported sources. Tuku acknowledged that this is due in part to the recent fire at the Excelerate Energy floating storage and regasification unit (FSRU) at Moheshkhali in Cox's Bazar, which has disrupted half of the country's LNG supply.

The minister also announced plans to develop additional LNG facilities, including land-based infrastructure, with a target of creating enough capacity within two years to bring in significantly more LNG and supply industries. This includes renting an FSRU and upgrading pipeline and storage capacity.