ONLINE DESK
Government subsidy for liquefied natural gas (LNG) procurement surged by 48.33 per cent year on year to Tk 89 billion in fiscal year (FY) 2024-25.
This increase comes despite authorities raising gas tariffs at least five times over the past six years, and repeated calls from the International Monetary Fund (IMF) for the phasing out of energy subsidies.
State-owned Petrobangla received Tk 60 billion in subsidies from the Ministry of Finance (MoF) to import LNG during FY2023-24.
Since initiating LNG imports in 2018, the government has spent over Tk 367.12 billion on such subsidies.
The figures were disclosed by AKM Mizanur Rahman, Director (Finance) of Petrobangla, during a seminar titled “Energy Security of the Country: Challenges and Way Forward – The Role of Media,” held at Petrobangla headquarters in the capital.
The seminar was chaired by Petrobangla Chairman Md Rezanur Rahman, while energy expert Professor Ijaz Hossain presented the keynote paper at the event, organised by Petrobangla.
In his keynote, Mr Hossain said the country’s natural gas production from local fields has currently declined to around 1,800 million cubic feet per day (mmcfd), a level comparable to the output during 2008-09. Gas supply has decreased steadily since peaking in fiscal year 2016-17.
Bangladesh recorded its highest ever natural gas production on May 6, 2015, reaching 2,786 mmcfd, he noted.
The country has consumed an estimated 15 trillion cubic feet (Tcf) of gas to date, with remaining reserves now standing at less than 9.0 Tcf. At the current rate, these are projected to be nearly exhausted by 2030.
To maintain gas production at a modest 2,000 mmcfd, which is 200 mmcfd higher than the current output, Mr Hossain said the government must drill at least 10 wells annually.
He stressed the need for a three-fold increase in drilling investment, suggesting that the government could issue gas bonds to finance new exploratory wells.
Mr Hossain, a Professor of Chemical Engineering at Bangladesh University of Engineering and Technology (BUET),
also noted that Chevron has been producing gas efficiently for over 15 years and has excess processing capacity at Bibiyana.
He recommended that the government allow Chevron to undertake further exploration and investment to ramp up overall natural gas output from domestic fields.