The Centre for Policy Dialogue (CPD) has recommended a combination of immediate, medium- and long-term measures to address Bangladesh's growing energy crisis. Key proposals include optimizing LNG procurement, accelerating domestic gas exploration and scaling up renewable energy. The recommendations were presented at a discussion titled "Navigating Bangladesh's Energy Crisis: Immediate Priorities and the Path to a Sustainable Energy Future" held in Dhaka. CPD Senior Research Associate Foqoruddin Al Kabir presented the keynote paper, with Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood attending as the chief guest.
For immediate action, CPD suggested optimizing LNG procurement to mitigate international price volatility, introducing pricing and regulatory reforms for efficient energy use, expanding social protection for vulnerable populations and reviewing policies on private investment in the energy sector. In the medium term, the CPD proposed expanding LNG terminal and storage facilities, strengthening transmission and distribution networks, adopting time-bound policies to diversify the energy mix and scaling up renewable energy through proactive policy frameworks.
For the long term, the CPD called for stronger institutional coordination among relevant ministries, building strategic fuel reserves to guard against future supply shocks and treating domestic gas exploration as a strategic national emergency. The presentation highlighted that imported LNG accounted for 28.82 percent of national gas consumption in FY2024-25, while domestic gas production has been declining. It also noted a structural gas supply shortfall of around 1,200-1,400 million cubic feet per day.
The CPD emphasized that Bangladesh's energy crisis is both immediate and structural, requiring accelerated domestic exploration, expanded renewable energy, improved transmission and distribution infrastructure and reduced dependence on imported fossil fuels. The presentation warned that remaining domestic gas reserves could approach depletion by 2031 at the current rate of consumption, underscoring the need for immediate conservation measures and exploration for new gas reserves. The discussion was attended by energy experts, business leaders, academics and representatives of relevant sectors.
The CPD identified exploration failures, infrastructure constraints, the widening demand-supply imbalance and growing dependence on imported LNG as the major causes of the current gas shortages. The shortages have already affected industrial production, household energy affordability and transportation costs, with industries including garments and fertilizer plants reducing or suspending production.
