Bangladesh plans to expand LNG infrastructure and boost domestic gas production to mitigate supply risks
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Bangladesh is grappling with a severe gas supply shortfall, forcing a reliance on liquefied natural gas (LNG) imports to maintain energy stability. The current infrastructure, heavily dependent on just two floating storage and regasification units (FSRUs), remains vulnerable to systemic shocks that threaten power generation, industrial output, and broader economic activity.
Technical issues recently led to a partial suspension of operations at the Excelerate Energy terminal. While authorities are currently working to reactivate a damaged boiler, they are seeking a technical solution that avoids a complete 72-hour shutdown, which would otherwise trigger a further dip in supply. To mitigate risk, authorities have arranged for standby LNG vessels to ensure supply continuity during any necessary maintenance. Despite these technical challenges, international LNG delivery schedules have remained largely intact, though coordination with suppliers is ongoing to realign timelines once full operational capacity is restored.
To bolster energy security and prevent future supply chain disruptions, the government is moving forward with plans to install two additional floating terminals. Simultaneously, the procurement process for a consultant to oversee the construction of a land-based terminal is in its final stages, with land acquisition already underway in Matarbari, Maheshkhali.
Officials acknowledge that infrastructure expansion alone is insufficient. The government is currently developing a comprehensive framework that integrates long-term import contracts, spot market strategy, pipeline infrastructure development, and an aggressive push for increased domestic production.
Recognizing that an import-heavy energy policy is susceptible to global price volatility, transportation costs, and geopolitical instability, the government is prioritizing the expansion of domestic exploration. Recent international tenders for offshore oil and gas exploration have received positive responses from foreign companies. By enhancing both onshore and offshore production, officials aim to reduce long-term dependence on imports and create a more resilient national energy grid.
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