Bangladesh Gas Crisis: Offshore Exploration Hopes Amid Domestic Capacity Concerns

Bangladesh is facing its worst gas shortage in over a decade, leaving households, factories, and power plants struggling to access adequate supply. The country's domestic output has plummeted from nearly 2,800 million cubic feet per day to around 1,620 million, resulting in a daily shortfall of approximately 1,300-1,500 million cubic feet.

The government is now considering offshore exploration in the Bay of Bengal as a potential solution. However, experts warn that this approach relies on unproven resource potential and would require years to develop. The country has already secured a vast maritime zone through boundary disputes with India and Myanmar, but successive governments have failed to prioritize exploration.

The state gas corporation Petrobangla shares significant blame for the lack of progress, as political appointees have dominated top positions, undermining expertise and continuity. Bapex, the exploration arm, has also struggled to turn recommendations into a consistent exploration program. A potential deep-water prospect identified by ConocoPhillips in 2014 could contain around five trillion cubic feet of gas, but extraction costs proved too high, leading the company to withdraw.

The government's rigid decision-making and unfavorable pricing terms have deterred foreign investors, including ExxonMobil. The current administration is attempting to restart offshore exploration with a new tender for 26 blocks, offering adjusted production sharing contract terms. However, experts caution that domestic capacity must be strengthened to reduce dependence on imported liquefied natural gas.