LNG Dependence Deepens in Bangladesh Amid Exploration Slowdown

Bangladesh's reliance on imported gas has increased significantly over the past seven years due to declining domestic production and limited exploration efforts.

In FY 2018-19, LNG imports accounted for 11 percent of total gas supply, but by FY 2025-26, this figure rose to 36 percent. Domestic gas supply fell by 337 bcf over the same period while LNG imports increased by 239 bcf.

Volatile international LNG prices are driving up import costs and putting additional pressure on foreign exchange. The government is providing subsidies to keep the supply price of imported gas affordable, with a total cost of BDT 2.77 trillion spent between FY 2018-19 and FY 2025-26.

Experts attribute the shift in reliance on LNG imports to the country's slow pace of exploration efforts. A target was set in September 2022 to drill 50 wells by 2025, but this program could not be implemented within the stipulated timeframe. A new target of 150 wells was later set, which may take until 2032 to deliver.