Building a $1 trillion economy by 2034 will require Bangladesh to add at least 1 trillion cubic feet (TCF) of annual gas supply capacity, East Coast Group Chairman Azam J Chowdhury said, stressing that energy expansion must underpin the incoming government’s economic strategy.
In an interview with Mahfuz Ullah Babu of TIMES of Bangladesh, he said achieving the BNP’s target of a trillion-dollar economy would require sustained annual growth of 8 to 9 per cent, which cannot be achieved abruptly.
To reach 8 per cent growth, Bangladesh would need to add at least 1 TCF of annual gas supply capacity, as the current gas shortfall stands at no less than 500 billion cubic feet a year.
He said that even with increased imports, existing infrastructure cannot fully meet demand and that output from marginal gas fields must be raised while imports are optimised, combining both approaches.
Bangladesh operates two floating storage and regasification units (FSRUs) capable of supplying between 750 and 1,000 million cubic feet of imported LNG per day. However, monsoon disruptions lasting four months and around two months of dry docking significantly limit capacity, restricting imports to 11 to 13 cargoes per month.
He said expanding costly floating units would not be sufficient, pointing out that each incurs a daily wheeling charge of about $250,000 whether fully utilised or not.
He advocated building a permanent terminal with a capacity of 1,000 million cubic feet per day at an estimated cost of $750 million to $850 million, arguing that it would provide storage facilities and strengthen energy security.
The project could be undertaken through private sector participation rather than solely by the government.
Adding 1 TCF of gas capacity within the next two to three years would require total investment of $2 billion to $3 billion, which he said is not an insurmountable challenge.
He disclosed that a joint proposal submitted with US-based ExxonMobil has, over the past five years, moved between the shipping ministry, port authorities, the Public Private Partnership Authority and the energy ministry, where it has received broad support, although further opinions are still being sought.
If declared a project of national importance, it could be implemented swiftly, he said.
The project would add 750 million cubic feet per day of gas capacity and include a liquefied petroleum gas terminal with 1.2 million tonnes of capacity, along with environmentally friendly energy initiatives such as ammonia and hydrogen, all of which were proposed earlier and are awaiting progress under the next government.
He said there is a clear public expectation for a competent and patriotic administration and that the country’s future hinges on how much change the upcoming cabinet can deliver and how effectively it can ensure efficiency and good governance.
He said he believes the Bangladesh Nationalist Party will move cautiously and that the composition of the cabinet will be decisive, as placing the right people in key positions would enable sound decisions.
Law and order should be the immediate top priority, he said, noting that people are dying on the streets, discipline has broken down and restoring security and public confidence must come first.
Energy should be the second priority, as growth will not materialise without reliable supplies, and without growth there will be no employment, investment or new industrialisation, he added, urging that responsibility be given to a capable professional who understands the sector.
The third priority should be a comprehensive review of economic policies, including import and export rules, prioritisation of raw material imports and measures to accelerate local production, ensuring that policies reflect the needs of those they are meant to serve and that stakeholders are consulted regularly.
He criticised the previous government for failing to engage with the business community and said policymaking should be preceded by consultations, comparing it to households checking their needs before going to market.
With limited fiscal space, process simplification is essential, he said, adding that reducing bureaucratic complexity would generate positive momentum in the economy, increase efficiency and curb corruption.
On the Bangladesh–United States agreement, he described it as the better option among limited choices, saying that a reciprocal tariff capped at 19 per cent would not be overly damaging and could fall to zero for apparel made from US cotton or yarn.
However, he expressed concern over clauses that could oblige Bangladesh to comply with US export or import restrictions, warning that non-compliance could risk termination of the agreement.
He questioned whether such decisions should have been taken at the eleventh hour of the interim government rather than left to an elected government.
The incoming elected government should review the deal in the national interest.
