Government Unveils Mega Plan to Boost Energy Sector Investment
To boost the national gas supply and overcome deep-seated economic challenges, the government has launched major initiatives, including drilling 150 wells, setting up three to four new LNG terminals, and offering full tax exemptions and incentives for solar energy. Finance and Planning Minister Amir Khosru Mahmud Chowdhury announced these plans on Monday at a discussion titled ‘Sustainable Power and Energy: The Driving Force of Investment in Bangladesh,’ organised by the Foreign Investors’ Chamber of Commerce and Industry (FICCI) in the capital.
Addressing the gathering, Minister Amir Khosru Mahmud Chowdhury stated, ‘Due to the global economic crisis and instability in the Middle East, the energy sector has become the focal point of the economy.’ He emphasised that the government is working tirelessly to resolve inherited issues such as revenue deficits, banking instability, and capital flight, while simultaneously implementing plans to secure energy, attract foreign and domestic investment, and stabilise the economy.
To resolve the energy crisis, priority is being given to solar power generation, gas exploration, and infrastructure expansion for imported liquefied natural gas (LNG). The minister informed that full tax exemptions and incentives have been granted for solar energy, alongside encouraging rooftop solar installations on homes and industrial units. He mentioned that provisions are now in place to purchase surplus rooftop solar power at premium rates above standard prices, which is expected to help meet national solar generation targets.
On domestic energy supply, efforts are being fast-tracked across both onshore and offshore locations to accelerate gas discovery and production. The minister noted that state-owned enterprise BAPEX is being significantly strengthened, with a firm decision already taken to drill 150 gas wells and approval granted to purchase necessary equipment. Furthermore, three to four new Floating Storage and Regasification Units (FSRUs) are planned with participation from private investors from South Korea, China, and the United States.
To enhance import capacity, a deep-water location near Khulna has been identified alongside Matarbari to establish a modern terminal with a 20-meter draft, allowing direct discharge from large oil and LNG vessels as a new energy hub. Complementing these energy sector interventions, the government is executing financial reforms in the banking and revenue sectors while establishing a special capital market fund to reduce the overall cost of doing business, improve the investment climate, and attract sustainable foreign investment.
