PM Tarique Sets Out Five Point Plan to Boost Domestic Gas Supply
Prime Minister Tarique Rahman has outlined a five point plan to tackle Bangladesh’s energy crisis by increasing domestic gas production and exploration while expanding LNG import capacity. During the same parliamentary question and answer session, he rejected claims that gas and electricity shortages had forced large numbers of factories to shut, saying the figures came from old reports.
In a Nutshell:
- Thirty of 150 planned gas wells have been drilled or worked over, adding 140 mmcfd to the national grid, while seven more are being drilled.
- The seven wells are expected to add another 85 mmcfd, with 4,500 line km of 2D and 4,200 sq km of 3D seismic surveys planned to find more reserves.
- BAPEX will get two new rigs, while bidding has opened under the approved Offshore Model PSC 2026.
- The government is negotiating for a floating LNG terminal at Kutubjom, expected to add 600 mmcfd of import capacity from December 2028.
- Feasibility studies are underway for one or two more floating LNG terminals near Payra or Mongla or along the southwestern coast.
- PM Tarique rejected claims that 92 or 200 to 300 factories had closed because of gas and electricity shortages, saying the figures came from old reports that were later retracted.
Context
In response to a question from MP Selina Sultana during Wednesday’s question and answer session in Parliament, PM Tarique said the energy sector had been left “crippled” under the previous “fascist rule”. He linked this to inadequate gas exploration and growing reliance on imported gas. Gas fired plants supplied 50% of Bangladesh’s electricity in 2024, according to the International Energy Agency. Qatar supplied around 60% of Bangladesh’s imported LNG in 2025, while most Gulf LNG cargoes depend on the Strait of Hormuz, which is currently disrupted by the US Iran conflict. The government is now trying to increase domestic production while adding enough LNG capacity to meet demand as that work continues. The Kutubjom terminal is expected to start supplying gas in December 2028, with further terminals under consideration.
Why it matters
The government is acknowledging a serious energy supply problem and working towards fixing it with the five point plan. At the same time, they are also pushing back against the idea that it has already triggered widespread factory closures. The PM’s response on factory closures suggests the government does not want the crisis to be presented as an immediate threat to industrial production. The plan therefore has two pressures to manage: reducing the import dependence that has left Bangladesh exposed to higher LNG costs, while keeping enough gas and electricity available for industry in the meantime.
What we think
The most important part of the plan is the decision to put domestic exploration back at the centre of energy policy. Bangladesh cannot keep treating LNG imports as the main answer whenever domestic supply falls short, particularly when global prices and disruptions can quickly make those imports more expensive or harder to secure. The government now has a clear opportunity to show whether its exploration policy can reverse that dependence. The 150 well programme and the wider seismic surveys give it a much larger base to work with, but success will ultimately depend on how quickly those investments translate into commercially usable gas.