Bangladesh’s reliance on imported gas is deepening as domestic production falls and exploration of new fields proceeds slowly. Liquefied natural gas (LNG) imports began in 2018 to cover the shortfall in local supply, when imported fuel accounted for 11 percent of the gas delivered to the national grid. Seven years on, that share has risen to 36 percent in the 2025–26 fiscal year.

Officials and industry experts attribute the shift to falling domestic output and to efforts to boost supply from domestic sources through drilling and workovers of wells that have failed to deliver expected results.

Total gas supply in FY 2018–19 was 1,078 billion cubic feet (bcf), of which 965 bcf came from domestic sources, Petrobangla figures show. The remaining 113 bcf was imported LNG, roughly 11 percent of the total. In FY 2025–26, by contrast, the national grid received 980 bcf, according to provisional figures: 628 bcf of local gas and 352 bcf of LNG. Over the seven years, domestic gas supply fell by 337 bcf while LNG rose by 239 bcf.

According to Energy Division figures, imported LNG now accounts for about 36 percent of the gas supplied to the national grid, with domestic sources providing the remaining 64 percent.

Volatile international LNG prices are driving up import costs and putting additional pressure on foreign exchange. The government is also having to provide subsidies to keep the supply price of imported gas affordable.

Two senior Petrobangla officials, speaking to Bonik Barta on condition of anonymity, said LNG imports had risen over the past fiscal year while domestic gas production had fallen compared with previous levels. More than 350 bcf of LNG was imported, accounting for about 36 percent of total supply.

Daily supply figures make this reliance equally clear. Petrobangla’s gas supply report shows 2,624 million cubic feet (mmcf) was fed into the national grid on Friday, 1,002 mmcf of which came from LNG, about 38 percent of the day’s supply.

Energy experts say a long-standing shortfall in exploration has been a key factor behind the shift in the country’s gas supply. No large-scale initiative could be undertaken over the past two decades to explore for and extract new gas onshore. Similarly, exploration in the vast expanses of the Bay of Bengal has made no significant headway for more than a decade. Opportunities to discover new reserves and boost production have remained limited as a result. With demand for gas in industry, power and other sectors holding steady, the country has grown increasingly reliant on imports to bridge the gap.

Statistics on exploration and extraction efforts also point to these constraints. Behind the headline figure of 112 wells drilled between 2010 and 2024 lie just 38 newly drilled wells. Roughly 10 of them were exploration wells. Most of the rest were used for appraisal and workovers. The total number of wells drilled therefore does not show the true progress in discovering new gas reserves or increasing production.

In September 2022, a target was set to drill 50 wells by 2025. That programme could not be implemented within the stipulated timeframe. A new target of 150 wells was later set, which could take until 2032 to deliver, according to the Energy Division and Petrobangla estimates.

Meanwhile, the financial burden of LNG imports is mounting. Petrobangla says Bangladesh spent about BDT 2.77 trillion on LNG imports between the 2018–19 and 2025–26 fiscal years. Subsidies exceeding BDT 480 billion were needed over the same period to supply imported gas at a relatively affordable price.