Prime Minister Tarique Rahman on Wednesday announced ambitious plans to establish a new deep-sea LNG terminal and drill 150 new gas wells by the 2030-31 fiscal year, as part of a comprehensive master plan to ensure energy security and uninterrupted industrial production.
The Prime Minister outlined the government's short- and long-term strategies, blending alternative sources and renewable energy, during a session of Parliament presided over by Speaker Hafiz Uddin Ahmed on Wednesday.
He was responding to separate questions from Sultana Ahmed, Member for Women's Seat-17, and Md. Tajuddin Khan, Member for Meherpur-1, during the question-and-answer period.
MP Sultana Ahmed raised concerns about a daily gas shortfall of approximately 450 million cubic feet and subsequent industrial disruption following the temporary shutdown of an LNG terminal in July 2026. She asked about alternative gas sources, LNG reserve capacity, priority supply for industrial zones, and emergency energy plans to prevent future crises.
In response, Prime Minister Rahman said that to prevent industrial gas shortages during sudden or temporary crises, the government has planned to drill 150 wells by the 2030-31 target. Additionally, 4,500 line-kilometers of 2D seismic surveys and 4,200 square kilometers of 3D seismic surveys are being conducted to explore domestic gas sources. An international bidding round was launched on May 24 for oil and gas exploration in 26 offshore blocks, with a bid submission deadline of November 2026. For onshore exploration, the government is developing the "Bangladesh Onshore Model PSC 2026" to attract international investment.
Strengthening LNG Infrastructure
To address future gas deficits and bolster LNG infrastructure, the Prime Minister noted that the country's two existing floating LNG terminals currently supply an average of about 935 million cubic feet of gas daily. To manage sudden crises, new facilities are under construction: a floating LNG terminal at Kutubjom in Maheshkhali and a land-based LNG terminal at Matarbari. According to the plan, re-gasified LNG will be available from the Kutubjom floating terminal in 2028 and from the land-based terminal by December 2030.
Furthermore, a feasibility study is underway for establishing an emergency floating terminal at a suitable location in the deep sea, considering the Payra or Mongla port areas or the southwestern coastal belt. The government has also initiated efforts to supply gas from Bhola to the mainland in LNG form for interested industries, prioritizing planned industrial zones such as economic zones, EPZs, and BSCIC industrial estates.
Responding to MP Tajuddin Khan's question about integrated planning for renewable energy and solar power to meet future electricity demand, the Prime Minister outlined the government's vision.
He said initiatives have been taken to reduce dependence on imported fuels to meet the country's growing power demand. Environmentally friendly and sustainable renewable energy has been identified as the government's highest priority sector. To ensure energy sector transformation, the government has formally formulated the "National Renewable Energy Development Strategy" for the 2026-2030 period.
“According to the strategy, considering overall potential and current realities, specific national targets have been set to achieve at least 20 percent of total electricity generation from renewable sources by 2030 and at least 30 percent by 2040. As part of this goal, alternative power generation plans through various technologies have been outlined by 2030.”
“Solar power has been given the highest priority among single technologies. The plan includes generating 5,500 MW from rooftop solar installations on homes, factories, and government buildings, and another 4,500 MW from large-scale ground-mounted solar projects. The remaining deficit will be met through a combination of modern technologies including wind power, waste-to-energy, hydropower, floating solar, and agrivoltaics, adding an additional 450-550 MW to the grid”.
To implement these ambitious targets and attract private investors, the government has introduced major positive changes in import and tariff structures. All customs duties, regulatory duties, supplementary duties, advance taxes, and the additional 2% advance income tax on importing essential renewable energy infrastructure components—such as solar panels, inverters, specialized batteries, and structures—have been completely waived, the PM said.
“To accelerate investment and engage consumers, a special pricing notification was recently issued. Under the September 1, 2026 decision, the cost of rooftop solar power generation with batteries has been capped at a maximum of Tk 8 per unit. As a special government incentive, adding a 20% profit and an 11.25% premium to this generation cost, the price for selling excess power to the national grid has been fixed at Tk 10.50 per unit. Consumers who install rooftop systems by February 28, 2027, following the Net Metering Guidelines 2025, will receive this Tk 10.50 per unit rate for their surplus power for three consecutive years, until February 28, 2030”.
