[🇧🇩] Energy Security of Bangladesh

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Bangladesh to be 2nd-largest LNG importer in South Asia by 2035: IEA

Bangladesh’s faster regasification expansion and declining domestic gas fields to drive higher imports

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Bangladesh to be 2nd-largest LNG importer in South Asia by 2035: IEA
Bangladesh’s faster regasification expansion and declining domestic gas fields to drive higher imports

Representational photo: Collected

Bangladesh's liquefied natural gas (LNG) imports are likely to outpace Pakistan's by 2035, making it the second-largest importer in South Asia after India, according to a projection by the International Energy Agency (IEA).

Pakistan and Bangladesh together would import around 75 billion cubic metres (bcm) of LNG in 2035, up roughly 60 percent from 2024 levels, projected the intergovernmental organisation, which provides policy recommendations, analysis, and data.

"In the Stated Policies Scenario, LNG imports in other developing Asia—primarily Pakistan and Bangladesh—increase from 45 bcm in 2024 to 80 bcm in 2035," the IEA said in its latest World Energy Outlook 2025, published yesterday.

The Stated Policies Scenario reflects reading of country-specific energy, climate and related industrial policies that have been adopted or put forward, even if not yet codified in law.

Though the report did not specifically state the share of each country, the outlook data and infrastructural trends showed that Bangladesh would import around 42-44 bcm of LNG in 2035, while Pakistan would import around 33-36 bcm.

In 2024, Pakistan still imported slightly more LNG than Bangladesh. But by the early 2030s, the IEA projections suggest Bangladesh will pull ahead, driven by faster depletion of local gas and larger regasification capacity.

In India, LNG imports have been growing in recent years, driven by opportunistic buyers and strong potential growth in demand, especially in industry, as per the report.

In 2035, India would import 50 bcm of LNG, up from 35 bcm at present, it added.

Both Bangladesh and Pakistan are already dependent on LNG for power generation and industrial feedstock.

However, Bangladesh's expansion of regasification capacity and faster gas-field depletion are expected to lift its import needs beyond Pakistan's over the next decade, the projection suggested.

In Bangladesh, most onshore gas fields are in decline, while new exploration has lagged, driving a steady rise in LNG dependence for electricity generation, fertiliser production, and industries.

The country operates two floating storage and regasification units (FSRUs) and is expected to expand by two more floating and one land-based terminal.

In contrast, Pakistan has been facing financing constraints that have delayed terminal expansion and reduced LNG purchases in recent years.

In countries with mature domestic gas production, such as Thailand, Indonesia, Malaysia, Pakistan, and Bangladesh, LNG is a logical replacement for declining domestic gas, the outlook said.

The report said Asia will remain the key driver of global LNG demand growth amid slowing domestic gas production, accounting for more than 75 percent of total imports by 2035.

"These include Southeast Asia, where LNG imports rise from 35 bcm today to 135 bcm in 2035," it said.

"Lower-priced LNG flows to other parts of the world where affordability is a key consideration, notably India and other parts of South and Southeast Asia," it said, adding that the price would be 40 percent lower than today by that time.

The weighted average gas import prices in emerging markets and developing countries in Asia would be around $7.5 per million British thermal units (MMBtu) in the 2030–2035 period.

For importers like Bangladesh, this glut offers an opportunity to secure long-term supplies at more competitive prices, though the agency warns that excessive dependence on imported gas could expose developing economies to volatility in global markets.

"Even at prices near to the short-run marginal cost of supply, LNG remains a premium fuel in a number of markets in Asia," it said.

"Abundant supply may offer these countries significant optionality for security-of-supply reasons and may help them manage periods of system stress," it said.

"…but the economics of LNG make it difficult to penetrate these markets as a baseload fuel in the long run," it warned.

 

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newagebd.net/post/power-energy/282653/energy-security-hinges-on-policy-consistency-experts

Energy security hinges on policy consistency: experts
19 November, 2025, 22:45

The country’s energy security hinged on policy consistency to attract domestic and foreign investments under a transparent regulation, experts said at a seminar on Wednesday in the capital.

The discussants, comprising policymakers, business leaders and energy experts, also said that the long-term predictable policy could only ensure the much-needed investment in the sector as well as the uninterrupted power to hungry industries.

The seminar titled ‘Enabling Bangladesh’s Growth and Prosperity: Developing a Sustainable Power Sector Investment Climate’ was organised by Policy Exchange Bangladesh and the Economic Reporters Forum with support from EMA Power, an investment platform focused on power projects in emerging markets.

Cautioning that without long-term reforms and greater private sector engagement, the speakers said the country could face a major power crisis in the next decade.

Bangladesh Energy Regulatory Commission chairman Jalal Ahmed, speaking as chief guest in the event, highlighted challenges, including over capacity, falling gas supply, lack of diversified fuel solutions and bureaucratic delays in project clearance, plaguing the sector.

Identifying sustainability of power sector depended on renewable energy and referring examples of Pakistan and India on booting renewable energy sources, Jalal Ahmed said that about 4,000 factories could generate huge power through rooftop solar initiatives.

He urged inclusion of industrial renewable energy in long-term planning to meet the country’s growing energy demand.

M Tamim, vice-chancellor of the Independent University Bangladesh, Park Young-sik, South Korean ambassador in Dhaka, Abdul Awal Mintoo, vice-chairman of Bangladesh Nationalist Party, Mahdi Amin, an adviser to the Acting chairman of Bangladesh Nationalist Party, and Mobarak Hossain, member of Shura Council of the Bangladesh Jamaat-e-Islami, participated in the discussion as guests of honour.

M Tamim described the high cost of energy in the country as a major limitation for industrial competitiveness.

He warned that the country might face energy shortages until 2029 and stressed the need for a long-term policy approach to ensure supply stability.

BNP vice-chairman Abdul Awal Mintoo noted that political stability was inseparable from economic progress.

He put emphasis on restoring investors’ confidence to overcome the economic challenges compounded by the lack of energy security.

The country has attained the capacity of generating around 28,000 to 29,000 Megawatts power every day, but half of it remained unutilised due to a weak grid, costly fuel and idle plants.

Despite billions of dollars invested, energy security remains one of the largest concerns, said Mahdi Amin.

Highlighting the past experiences of some mega projects suffered from a culture of impunity, he said that the future policy must be transparent and sustainable.

Predictable policies, transparent regulation and long-term investment confidence were termed by the Jamaat Shura Council member as pre-conditions to strengthen the energy sector.

He emphasized capital investment, energy storage, regional power trade and modernization of institutional frameworks for depoliticising the power sector and enhancing efficiency of it.

Earlier in the day, two panel discussions were held, where Imran Karim, chairman of Confidence Power Rangpur Limited, Kamran T Rahman, president of the Metropolitan Chamber and Commerce Industries, Mahmud Hasan Khan Babu, president of Bangladesh Garment Manufacturers and Exporters Asssociation, Shamsul Alam, energy adviser of Consumer Association of Bangladesh, participated, among others.

Stakeholders expressed optimism that continued reforms and coordinated action among government, private sector and development partners could unlock Bangladesh’s significant economic potential and secure a sustainable, prosperous future.

Vice-chairman of AK Khan Group and Business Initiative Leading Development chairman Abul Kashem Khan and ERF president Doulot Akter Mala gave introductory remarks.

Abu Chowdhury, director of EMA Power Investment Limited and chairman of EPV Thakurgaon Limited, made a power-point presentation.​