Energy experts demand overhaul as crisis deepens

Energy experts and industry leaders have called for a fundamental overhaul of Bangladesh’s energy strategy, warning that the deepening gas and electricity crisis requires immediate infrastructure upgrades and long-term reforms to prevent further damage to the economy.
The demand came out at a seminar titled “Navigating Bangladesh’s Energy Crisis: Immediate Priorities and the Path to a Sustainable Energy Future”, organised by the Centre for Policy Dialogue (CPD) at BRAC Inn in Dhaka on Thursday.
Responding to the concerns, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud said the government plans to build three more floating LNG terminals (FSRUs) at Payra, Mongla and Hiron Point by 2029.
“A work order has already been issued for the installation of one FSRU. We have decided that by 2029, Bangladesh will have three more FSRUs," he said, adding that investors were being sought for the projects. A recent US delegation had also expressed interest in investing in FSRUs, he said.
Bangladesh currently has two FSRUs off Maheshkhali with a combined regasification capacity of around 1,100 million cubic feet per day (MMcfd).
The minister said the ongoing crisis had severely affected industries, with businesses continuing to bear loan interest even when factories remain closed.
Expressing regret to entrepreneurs, he said the fire at Excelerate Energy's FSRU was unforeseen. Engineers from the UK and Singapore are working on the damaged terminal and assessing the repair timeframe.
He said another LNG carrier had been alongside the FSRU when the fire broke out but was able to move away quickly, averting a major disaster.
"After the FSRU is repaired, it will need to be shut down for another 72 hours to synchronise its two boilers. This could cause another significant temporary shortage in gas supply during that period," he said.
The minister said LNG imports had continued despite the damage and that four LNG cargoes had been purchased so they could reach Bangladesh as soon as the FSRU becomes operational. Replacement cables and other critical equipment are also being imported urgently, he said, adding that the responsibility for repairing the FSRU rests with Excelerate Energy.
Presiding over the discussion, CPD Executive Director Fahmida Khatun said stopgap measures would not resolve the crisis, called for a 10-year integrated energy policy and stronger institutional capacity, saying the crisis had been aggravated by the absence of appropriate market-based pricing, targeted subsidies, governance deficits and a lack of structural reforms. 
She urged the government to take swift and visible action to provide relief to industrial, agricultural and household consumers.
David Hasnat, president of the Bangladesh Independent Power Producers Association (BIPPA), said a significant portion of gas-based power plants were being forced to remain shut because of the acute gas shortage, while domestic gas production was rapidly declining.
As new floating LNG terminals take time to build, he urged the government to prioritise land-based LNG terminals to address the immediate shortfall and strengthen long-term energy security.
Mostafa Al Mahmud, president of the Bangladesh Sustainable and Renewable Energy Association, called for greater emphasis on renewable energy. He recommended simplifying port clearance procedures and providing duty exemptions for energy storage technologies.
Energy expert Professor Ijaz Hossain blamed the worsening gas and electricity deficit on excessive social commitments, flawed pricing mechanisms and persistent system losses.
"Rather than resolving the crisis, authorities have allowed it to accumulate over the years, leading us to this precarious stage," he said, stressing that demand management must receive as much attention as increasing supply.
He called for realistic, cost-based pricing and stronger action against gas theft, while cautioning industries to prepare for future volatility.
Syed Nasim Manzur, a member of the CPD Board of Trustees, urged the government to set clear priorities to protect industries from collapse. He called for a specific load-shedding schedule, stronger measures to reduce system losses, tax incentives for solar storage and preferential fuel allocation for export-oriented industries.
Professor Sakib Bin Amin of North South University and Associate Professor Mosahida Sultana of Dhaka University also spoke at the seminar.
EXPLORATION, PIPELINES
The government is also accelerating domestic gas exploration, the minister said. BAPEX has been instructed to expedite drilling, while two additional rigs are being brought in to increase exploration capacity.
"For the past 17 years, proper exploration was not conducted, and the country was made dependent on imports," the minister said, while acknowledging that even a successful discovery would not immediately translate into additional supply, leaving Bangladesh dependent on LNG imports in the meantime.
The minister said expanding FSRU capacity would not be enough without improving gas transmission infrastructure. As the existing pipeline network from Chittagong to the southern region has capacity limitations, new pipelines are being planned to connect the expanded LNG infrastructure.
"We need to build new pipelines and extend the line toward Maheshkhali," he said, adding that discussions were under way on a government-to-government arrangement for rapid implementation.
The government aims to complete major energy and power infrastructure projects by 2029, he said.
"We are working day and night. Our goal is to strengthen infrastructure so that pressure on investors and the industrial sector can be reduced," Mahmud said.
The minister also said the government was working on a policy to allow eligible private companies to import a portion of fuel oil to reduce dependence on a single supplier.
"Bangladesh Petroleum Corporation (BPC) currently buys oil as a sole buyer. If we remain dependent on one entity, we could face problems," he said.
He stressed that no decision had been made to award the fuel oil business to any specific company, calling such claims "mere propaganda".
The government will consult all stakeholders before finalising the policy and formulate a framework for managing the fuel oil market through public-private partnership, he added.