In a span of just two weeks in February, Bangladesh’s daily domestic gas production has plummeted by 41 million cubic feet (4.10 crore), exacerbating an already critical energy crisis.
The decline follows a January drop of 19 million cubic feet, painting a grim picture of the nation’s energy outlook.
On 1 January, total gas production stood at 1,929 million cubic feet per day, which fell to 1,870 million cubic feet by 15 February.
This decline is a continuation of the downward trend observed since November 2023, when production was recorded at 1,968 million cubic feet.
Industry experts attribute the consistent decrease to the depletion of domestic gas fields, which has led to a daily reduction in output.
Back in January 2020, Bangladesh Gas Fields Company extracted 708 million cubic feet of gas per day. Fast forward to 15 February 2025, production has shrunk to 483 million.
Multinational companies, which managed four major gas fields in 2020, supplied 1,656 million cubic feet per day.
However, as of February 2025, this figure has declined drastically to 1,139 million.
Despite this decline, gas demand continues to rise exponentially, widening the supply-demand gap to unsustainable levels. The most alarming concern stems from the rapid depletion of reserves in the Bibiyana gas field, the country’s largest supplier.
On 15 February, Bibiyana alone accounted for 956 million cubic feet of daily production.
However, industry insiders fear that at this rate, the field’s reserves could be exhausted by 2026, reducing domestic supply by a staggering 1,000 million cubic feet per day.
Petrobangla’s latest annual report for 2022–23 indicated that as of July 2023, Bibiyana had an estimated remaining reserve of 134 billion cubic feet (BCF). Subsequently, authorities suggested that an additional 1 trillion cubic feet (TCF) of gas might be extractable, but no concrete action has been taken in the 592 days since that projection.
The previous government sought to mitigate the crisis by increasing liquefied natural gas (LNG) imports, and approving two additional floating storage and regasification units (FSRUs) under special legislation.
However, the current administration has annulled those contracts, instead opting for an open-market procurement approach.
Progress on this front remains sluggish, and given that setting up a new FSRU takes at least 18 months post-contract signing, Bangladesh faces a looming crisis in 2025 and 2026 with limited import options.
According to Petrobangla sources, the average cost of domestically produced gas stands at Tk6.07 per cubic metre.
However, due to increasing dependence on imports, the blended cost has surged to Tk24.38 per cubic metre in the 2023–24 fiscal year.
With local reserves depleting and imports constrained, sustaining an affordable gas supply is becoming an insurmountable challenge.
Apart from imports, alternative mitigation strategies have encountered significant hurdles.
Delays in Development Project Proposal (DPP) approvals by the Ministry and Planning Division have stalled vital initiatives, with bureaucratic red tape extending approval timelines to an average of two years.
Energy experts argue that the nation’s current predicament is a direct consequence of policy failures by successive governments.
The impending crisis could take a catastrophic turn by 2026 if corrective measures are not swiftly implemented.
While LNG imports remain a fallback option, soaring international prices and infrastructure limitations pose formidable obstacles.
Bangladesh’s existing two FSRUs have a maximum daily import capacity of 900 million cubic feet, insufficient to bridge the widening supply deficit.
Dr Ijaz Hossain, a prominent energy expert, underscored the urgency of increasing local exploration and production.
“With declining domestic reserves, we must drill at least 10 new exploratory wells annually to maintain production. While LNG imports are necessary, they must be kept within sustainable limits. If we aim for uninterrupted energy supply, the import bill for LNG alone could reach USD 24 billion, which would be an immense burden on our economy.”
Energy specialist Mokbul Elahi Chowdhury echoed similar concerns, emphasising the need for swift well-drilling and capacity enhancement.
“We are currently extracting 70 million cubic feet daily from Bibiyana, but reserves remain higher in fields like Rashidpur and Titas, where output is inexplicably limited to 10–25 million cubic feet per day. Optimising production from these fields is imperative.”
He further revealed that nearly 10 per cent of Bangladesh’s daily gas supply—approximately 300 million cubic feet—is lost to system inefficiencies and illegal siphoning.
“While a minor level of technical loss is expected, 10 per cent is unacceptable. A maximum of 2 per cent system loss should be the benchmark.”
Dr M Shamsul Alam, senior vice president of the Consumers Association of Bangladesh (CAB), warned of the dire consequences of ignoring repeated cautions about Bibiyana’s reserves.
“We have long warned about the looming crisis at Bibiyana, which is set to hit hard by 2026. Yet, critical steps were never taken. Gas extraction from fields such as Chhatak, which holds approximately 1 TCF in reserves, should be prioritised immediately.”
Petrobangla Chairman Rezanur Rahman acknowledged the pressing concerns and indicated that steps were being taken to bypass bureaucratic delays.
“To accelerate exploration and production, we have decided to proceed without the usual DPP approvals and instead rely on company funding. Several initiatives have already been launched to enhance production.”
As part of its remedial strategy, the government has drilled nine wells across two gas fields in Bhola, with an estimated production capacity of 200 million cubic feet per day.
Currently, five of these wells are operational, yielding 135 million cubic feet per day.
However, due to insufficient demand, only 80 million cubic feet are being extracted, while the lack of a pipeline connection has prevented integration with the national grid.
Plans are underway to transport 85 million cubic feet of gas as LNG from this region.
Meanwhile, gas reserves in wells such as Begumganj-4 and Sylhet-10 remain untapped due to pipeline constraints.
Delays in land-use approvals for pipeline construction have further exacerbated the situation, with bureaucratic hurdles hindering timely extraction.
Since the commencement of gas exploration in Bangladesh 113 years ago, only 99 wells have been drilled, leading to the discovery of 29 gas fields.
Comparatively, countries like the United States drill one well per 14 square kilometres and India per 18.6 square kilometres, whereas Bangladesh averages one well per 5,000 square kilometres.
Experts unanimously attribute the current crisis to this stagnation in exploration.
Unless immediate and decisive measures are taken, Bangladesh risks facing an energy catastrophe that could cripple industries, households, and the overall economy in the coming years.
