Bangladesh’s subsidy for liquefied natural gas (LNG) imports surged by 48.33% year-on-year to Tk 89 billion in the 2024–25 fiscal year, despite multiple rounds of gas tariff increases and calls from the International Monetary Fund (IMF) to scale back energy subsidies.

The rise was revealed at a seminar on energy security held at the Petrobangla headquarters in Dhaka. AKM Mizanur Rahman, Director (Finance) of Petrobangla, noted that the Ministry of Finance disbursed Tk 60 billion in subsidies for LNG imports in FY2023–24. Since 2018, when Bangladesh began importing LNG, total subsidies have exceeded Tk 367 billion.

The event, chaired by Petrobangla Chairman Md Rezanur Rahman, featured a keynote address by energy expert Professor Ijaz Hossain, who outlined the sector’s growing vulnerabilities.

According to Prof Hossain, domestic natural gas production has fallen to around 1,800 million cubic feet per day (mmcfd)—levels last seen in 2008–09—down from a peak of 2,786 mmcfd in 2015. With consumption now estimated at 15 trillion cubic feet (Tcf), the country’s remaining reserves of under 9.0 Tcf may run out by 2030 if no discoveries are made.

He called for urgent investment in exploration, suggesting the government drill at least 10 wells annually and consider issuing gas bonds to finance the effort. He also recommended empowering Chevron, which operates the Bibiyana field, to expand exploration and boost domestic supply.