Bangladesh's Growing Reliance on Imported LNG Sparks Concern

The technical issues in one of Bangladesh's two floating storage and regasification units (FSRUs) on July 21 have led to a gas supply crisis, with load shedding surpassing 3 gigawatts between July 26 and August 15. Natural gas contributes around 40% to Bangladesh's annual power generation, and the recent disruptions have prompted industry stakeholders to urge the government to build additional infrastructure for FSRUs and a land-based LNG terminal.

IEEFA estimates that Bangladesh imports 62.5% of its energy needs in 2025, with 59.5% coming from international markets. The government plans to build two new FSRUs and a land-based LNG terminal, which could shift the country's primary energy mix towards LNG, increasing reliance on international fossil fuel markets.

IEEFA forecasts that post-2030, LNG contribution to annual gas consumption could exceed 60%, with Bangladesh's exposure to international fossil fuel markets rising to around 74%. The cost of importing LNG is expected to increase from $3.8 billion in 2025 to potentially over $14 billion by 2030.