PM Outlines Plan to Overcome Energy Crisis

Prime Minister Tarique Rahman has said the country’s prolonged energy crisis and dependence on imports resulted from the previous government’s deliberate weakening of state-owned Bangladesh Petroleum Exploration and Production Company Limited (BAPEX). He said the current government is implementing a comprehensive and coordinated plan to overcome the crisis and move Bangladesh towards energy self-sufficiency and a sustainable system.

The prime minister made the remarks while answering questions from lawmakers during the question-answer session of the Jatiya Sangsad on Wednesday (September 2). He outlined plans to strengthen the country’s energy security, expand renewable energy and transform Bangladesh into a trillion-dollar economy by 2034. He said several major initiatives are being implemented to permanently address the energy crisis caused by inadequate exploration and excessive dependence on imports.

In response to a question from MP Selina Sultana, the prime minister said increasing domestic gas production has been given the highest priority. Under a programme to drill and conduct workovers on 150 wells, drilling of 30 wells has already been completed, adding 140 million cubic feet per day (MMcfd) of new gas to the national grid.
Drilling of another seven wells is currently underway. Once completed, these wells are expected to add a further 85 MMcfd to the grid. New projects are also being undertaken to drill the remaining wells in phases.

To intensify exploration for new gas reserves, the government is implementing a large-scale plan involving 4,500 line kilometres of 2D seismic surveys and 4,200 square kilometres of 3D seismic surveys. The process of purchasing two modern drilling rigs to strengthen BAPEX is also at the final stage.

The prime minister said extensive exploration is also being conducted under offshore and onshore Production Sharing Contracts (PSCs) to ensure long-term energy security. Following approval of PSC 2026, an international bidding round has been invited, while the approval process for the onshore model PSC is also nearing completion. The discovery of new gas fields through these initiatives would significantly strengthen the country’s economic stability.

As part of expanding LNG infrastructure, discussions are underway with international companies interested in establishing a new floating LNG terminal at Kutubjom in Maheshkhali, Cox’s Bazar. The terminal is expected to supply regasified LNG by December 2028 and increase the country’s LNG import capacity by another 600 MMcfd within the next two years.

The government is also assessing the feasibility of urgently establishing one or two additional floating LNG terminals in the southwestern region or around Payra and Mongla ports. The government’s measures to expand renewable energy were outlined in response to a question from MP Nilofer Chowdhury Moni.

The prime minister said all duties and taxes, including customs duty, regulatory duty, supplementary duty, advance tax and additional advance income tax, have been completely waived on solar panels, inverters, batteries and all other necessary components through a gazette notification issued on June 8, 2026. The move aims to encourage public interest and accelerate the development of the sector.

An attractive financial model has also been announced for rooftop solar users. For those installing solar systems on residential or institutional rooftops within the next six months, the government will purchase surplus electricity generated by them at Tk 10.15 per unit. Compared with the current average generation cost of Tk 6–7 per unit, the bulk rate and government incentives will allow entrepreneurs to earn up to 45% net profit, including 40% profit and a 5% premium. The incentive will remain effective for three years.

As part of its renewable energy expansion programme, the government has launched a national rooftop solar initiative for government buildings, educational institutions and hospitals. Rooftop solar systems have already been successfully installed at the offices of all district commissioners and divisional commissioners, while special allocations have been provided for implementation at other government offices.

Alongside solar power, the government is also advancing an integrated plan to generate electricity from wind, hydropower and waste.