Published : 03 Sep 2026, 01:02 AM
Updated : 16 Sep 2026, 11:47 AM
The government is implementing a five-point plan to pull Bangladesh out of its energy crisis, Prime Minister Tarique Rahman has told parliament.
The programme focuses on raising domestic gas production, expanding seismic surveys, strengthening state-run explorer BAPEX, awarding production-sharing contracts through bidding, and expanding LNG infrastructure.
“Years of inadequate gas exploration and dependence on imports have created the present energy crisis,” Tarique said during the prime minister’s question time on Thursday.
As part of a programme to drill and work over 150 wells, 30 have already been completed, adding 140 million cubic feet of gas a day (mmcfd) to the national grid, the prime minister said.
Another seven wells are now being drilled and are expected to add a further 85mmcfd. Projects for the remaining wells will be taken up in phases.
The government has also drawn up plans for 4,500 line-kilometres of two-dimensional seismic surveys and 4,200sqkm of three-dimensional surveys in the search for new domestic gas reserves.
Two new drilling rigs are being procured to strengthen Bangladesh Petroleum Exploration and Production Company.
On exploration by international companies, Tarique said the Offshore Model PSC 2026 had been approved and a bidding round launched, while the onshore model production-sharing contract remained under approval.
Successful exploration onshore and offshore could make a significant contribution to Bangladesh’s energy security, he said.
The government is also in talks with interested companies over a floating LNG terminal at Kutubjom in the deep sea off Maheshkhali, Cox’s Bazar.
Tarique said regasified LNG could begin flowing from the terminal by December 2028, increasing import capacity by another 600mmcfd.
Feasibility studies are also being pursued for one or two more floating LNG terminals near Payra, Mongla or elsewhere along the south-western coast.
Tk 10.50 for Rooftop Solar Power
Responding to another question, Tarique outlined incentives designed to accelerate renewable energy use.
The government has already granted conditional tax and duty exemptions on essential solar equipment, including panels, inverters, and batteries.
Anyone installing rooftop solar within the next six months will be able to sell electricity to the government at Tk 10.50 per unit, the prime minister said.
The government will pay the amount above the bulk electricity rate as an incentive. With estimated generation costs of Tk 6-7 a unit, the scheme could offer returns of up to 45 percent, including a 5 percent premium, according to the prime minister.
The incentive will remain available for three years.
The government has also launched a national rooftop solar programme covering public buildings, educational institutions and hospitals.
Solar systems have already been installed at the offices of all deputy commissioners and divisional commissioners.
Hydropower, wind generation and waste-to-energy projects are also being pursued.
10-year Power, Energy Plan
Tarique said the government had prepared a 10-year roadmap for the power and energy sectors, with some elements still being tested.
He said the state minister responsible for energy was expected to present the plan to parliament soon.
The strategy would support the government’s ambition of turning Bangladesh into a trillion-dollar economy by 2034, he said.
Phulbari Coal: Resettlement First
Asked about open-pit coal mining at Phulbari in Dinajpur, Tarique described the deposit as being among the world’s highest-quality coal reserves and said its extraction could reduce pressure on foreign currency reserves.
But he said any decision would have to address the impact on homes, farmland and the environment.
If open-pit mining required people to be displaced, the government would first consider how they could be resettled without losing their livelihoods and how local residents could benefit from the project, he said.
Environmental concerns would also have to be given priority before any decision was taken.
