Bangladesh's growing dependence on imported liquefied natural gas (LNG) could further weaken the country's economy and energy security in the next decade, International Energy Agency (IEA) has warned in its World Energy Outlook 2025, published on Wednesday.
According to the agency, Bangladesh faces three interlinked challenges: surging energy demand, depleting domestic gas reserves, and growing exposure to climate-related risks that threaten its energy infrastructure.
The report paints a concerning picture of Bangladesh's energy future, highlighting that the country, once self-sufficient in natural gas, now relies on imports for nearly one-fifth of its total gas consumption.
"High import prices, limited storage and regasification facilities, and climate vulnerability make the current LNG-dependent model economically and environmentally unsustainable," the report noted.
Bangladesh's coastal LNG terminals remain exposed to extreme weather events. The IEA cited examples from 2023 when cyclones and flooding disrupted LNG supplies, forcing temporary shutdowns of several power plants.
"Such incidents underline the fragility of coastal energy facilities to climate shocks," the report said, adding that without investments in climate-resilient infrastructure, the country's gas supply reliability will remain uncertain.
The IEA's global assessment also underscores the severe human and economic toll of pollution.
Air pollution was responsible for more than 16,000 premature deaths every day worldwide in 2024, while South Asia's pollution-related economic losses topped 11 percent of regional GDP.
While Bangladesh has taken limited steps to reduce industrial emissions, the IEA stresses that transitioning to renewable energy remains the most effective path to cleaner air.
Drawing comparisons with Canada and China, the report said both countries achieved a two-thirds improvement in air quality within a few years after phasing out coal-based power.
Bangladesh achieved universal electricity access in 2022. However, millions of families still rely on firewood and biomass for cooking-one of the main sources of indoor air pollution.
The IEA estimates that universal access to clean cooking fuels across developing Asia, including Bangladesh, could be achieved by 2033 with targeted government investment and incentives for electric stoves.
The report forecasts that average LNG prices in Asia will fall to around $7.5 per million British thermal units (MBtu) during 2030-2035-about 40 percent lower than current prices. This could make LNG more attractive for countries like Bangladesh, but infrastructure bottlenecks and financing challenges may restrict demand growth.
Bangladesh has pledged to generate 30 percent of its electricity from renewable sources by 2040, but progress has been slow, with less than 5 percent of current capacity coming from renewables.
