The Potential of Natural Gas in the Energy Sector: Reform or Transition? - Case Study of Bangladesh

Abstract

Bangladesh, one of the most densely populated nations in the world, faces a significant energy crisis despite its substantial natural gas reserves. With a population of approximately 173 million, the country's economic growth and industrial development rely heavily on a steady energy supply. Natural gas has historically played a central role in Bangladesh’s energy mix, offering a cleaner alternative to other fossil fuels. However, a decline in domestic gas production and rising energy demand have led to increased dependency on imported liquefied natural gas (LNG), escalating costs and straining the national economy. This paper explores the potential of natural gas in the context of energy sector reforms, examining whether the current reliance on this resource is sustainable in the long term or whether a transition to alternative energy sources is necessary. Key issues addressed in this paper include the stagnation in natural gas exploration, the inefficiencies in energy management, and the impact of global market fluctuations on Bangladesh’s energy supply. The findings highlight the urgent need for a balanced energy strategy that prioritizes immediate reforms in the natural gas sector and long-term investments in renewable energy. In doing so, Bangladesh can achieve a more sustainable and resilient energy future, ensuring energy security and economic stability.