It is alarming that Bangladesh's private industrial sector is facing a deep existential crisis due to a severe shortage of gas. This vital sector, which generates more than 35 percent of the country's GDP, consumes nearly 19 percent of the nation's total gas supply. Yet, many industrial units are now unable to operate at desired capacity because of chronic gas shortages.
This crippling gas crisis was highlighted at a recent discussion titled "Energy Efficiency Policy in Bangladesh's Industrial Sector: Guidelines for Sustainable Development," where experts expressed serious concern about the worsening gas shortage that is already stalling production, investment and job creation.
The situation is particularly troubling because the crisis has emerged even after gas prices soared by a staggering 178 percent in the 2023-24 financial year. As a result, production in sectors such as textiles, steel and fertiliser has fallen by 30-50 percent. Small and medium enterprises, the backbone of the industrial economy, are especially on the brink of closure.
This situation persists despite the sharp rise in gas prices in recent times. Supply remains unreliable, causing industries to repeatedly fall short of their production targets.
The roots of the crisis lie in long-standing policy failures. Although experts have long warned of dwindling domestic gas reserves beyond 2030, Bangladesh has shown little urgency in accelerating both offshore and onshore exploration. Consequently, the country has become increasingly dependent on imported liquefied natural gas (LNG), leaving the economy exposed to volatile international markets.
At present, local gas fields, including the country's largest Bibiyana field, supply only about 2,284 mmcfd against a total demand of 2,664 mmcfd. The remaining 380 mmcfd must be imported at significantly higher cost.
The recent discovery of an estimated 1.5 trillion cubic feet (TCF) of additional gas at Bibiyana brings some relief, but it does not fundamentally alter the long-term picture. Bangladesh's total discovered reserves stand at roughly 28.6 TCF, but only 9 TCF remain extractable.
This is why, without aggressive exploration and investment, the gap between demand and supply will continue to widen, especially as electricity demand is expected to surpass 17,500 megawatts next summer. With over 60 percent of the country's electricity dependent on gas-fired power plants, any disruption in gas supply will directly affect the power sector.
Energy efficiency, currently hovering around 30 percent, offers a crucial opportunity. Improving efficiency in industrial boilers, captive power plants and factory operations could immediately reduce wastage and ease pressure on gas demand. Experts argue that raising efficiency standards could significantly mitigate power shortages.
Equally important is the transition to renewable energy. If export-oriented sectors such as ready-made garments begin integrating solar and other renewable sources into their operations, dependence on gas could decline meaningfully within a few years.
Ensuring uninterrupted energy supply must now be treated as a national priority supported by decisive policy reforms, accelerated exploration, and a strong push for efficiency and renewables.
