Bangladesh's recurring energy crisis, particularly the acute shortage of natural gas, has once again exposed one of the country's most critical structural vulnerabilities. The crisis has already taken a heavy toll on key sectors of the economy, with industries and manufacturing bearing the brunt of prolonged gas shortages. The gravity of the situation is reflected in the recent telephone conversation between the prime ministers of Bangladesh and Malaysia, during which Bangladesh sought Kuala Lumpur's cooperation in easing the country's mounting energy difficulties. The timing of the discussion is significant. It came soon after the abrupt shutdown of a US company-operated Floating Storage and Regasification Unit (FSRU) at Maheshkhali on July 21, an incident that sharply curtailed the country's LNG import capacity and deepened an already fragile gas-supply situation. Malaysia's positive response is certainly encouraging and may help Bangladesh navigate the immediate crisis.
Yet, such external assistance can only provide temporary relief. It cannot substitute a coherent national strategy aimed at ensuring long-term energy security. Bangladesh has, for years, relied increasingly on imported liquefied natural gas (LNG) to compensate for declining domestic gas production. While LNG imports have helped bridge part of the widening supply-demand gap since 2018, they have also made the country more dependent on costly imports and vulnerable to technical failures, supply disruptions and volatility in the global energy market. Against this backdrop, the government's decision to proceed with a third FSRU at Kutubjom in Maheshkhali, to be developed by China National Energy Engineering & Construction Co. Ltd. under a government-to-government arrangement, is a pragmatic step. Once operational, the additional floating terminal should strengthen Bangladesh's LNG handling capacity and reduce the risks associated with dependence on only two regasification facilities.
Even so, expanding LNG infrastructure addresses only the symptoms of a deeper problem. The more fundamental challenge lies in Bangladesh's prolonged neglect of domestic gas exploration. Onshore and offshore exploration activities have remained largely stagnant despite repeated warnings about depleting reserves. Without renewed investment in exploration, modern geological surveys and timely development of newly discovered fields, the country's dependence on imported fuel will continue to grow, with significant implications for energy affordability and macroeconomic stability.
The stakes are particularly high as the government seeks to accelerate industrialisation, attract foreign investment and diversify the economy. Reliable and affordable energy is an indispensable foundation of these ambitions. No industrial policy, however well conceived, can succeed if factories cannot count on uninterrupted gas supplies. The present crisis should, therefore, serve as a catalyst for a broader reassessment of the country's energy policy. Emergency imports and new LNG terminals may be necessary to manage immediate shortages, but they must be complemented by an unwavering commitment to domestic resource development, diversification of the energy mix and long-term planning. Bangladesh cannot afford to remain trapped in a cycle of recurring energy emergencies. Sustainable economic progress will ultimately depend not on temporary fixes, but on building an energy system that is resilient, diversified and capable of meeting the demands of a growing economy.