LNG Dependence Threatens Bangladesh's Economy

Bangladesh is facing a critical energy crisis due to its reliance on imported liquefied natural gas (LNG). The country has been importing LNG since 2018 as a temporary measure, but it has become a permanent and expensive structure. Last fiscal year, Bangladesh imported 113 LNG cargoes at a cost of approximately Tk 59,713 crore, with the government providing an additional Tk 12,600 crore in subsidies.

The country's LNG import bill could reach Tk 90,000 crore this year alone if international prices remain elevated, according to experts. The Institute for Energy Economics and Financial Analysis (IEEFA) has warned that Bangladesh's LNG import bill could hit US$8.5 billion by FY2029-30.

The consequences of this dependence on imported energy are far-reaching. Rising costs have already affected ordinary Bangladeshis, with lower-income families falling below the poverty line due to shrinking purchasing power and rising prices. Industries are also suffering, with six of the country's seven major fertiliser plants shut or operating below capacity due to inadequate gas supplies.

Experts argue that an LNG-heavy energy strategy carries fundamental weaknesses. Bangladesh has no control over the prices it pays, the geopolitical conditions that determine supply, or the international shipping routes through which that supply arrives.