March 3, 2026
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Dhaka

Bangladesh launches 100-day energy reform drive

Bangladesh’s government launches a 100-day energy drive to reduce system loss, drill 150 gas wells, expand LNG infrastructure and reform state firms, balancing supply security with climate commitments.

Bangladesh’s new government has launched an ambitious 100-day roadmap to accelerate energy exploration, expand infrastructure and reform state institutions. The initiative aims to stabilise power supply while addressing rising pressure to meet climate commitments.

The plan is detailed in the book “Bangladesh’s Energy Sector: Current Status, Challenges and Future Plans,” which outlines short-, medium- and long-term initiatives over the next five years. Energy, Power and Mineral Resources Minister Iqbal Hasan Mahmud Tuku and State Minister Anindya Islam Amit officially unveiled the book on Wednesday at the Secretariat. According to the ministry, the roadmap prioritises domestic energy security, exploration of national resources, digitalisation and administrative reforms.

The plan aims to reduce system loss to 6.25 percent within 100 days, with a long-term target of bringing it down to 4 percent within five years. It also includes accelerating the installation of smart meters for residential connections.

According to a press release issued by the ministry, the publication outlines short-, medium- and long-term strategies with a focus on energy security, domestic resource exploration, transparency and digital transformation.

Under the 100-day plan, the government will drill 150 new gas wells. These include exploration wells to find new reserves, development wells to increase output from existing fields and workover wells to extract remaining gas from older wells. Production-sharing contracts for onshore and offshore projects are being finalised to encourage private investment.

Liquefied natural gas infrastructure will also be expanded. Plans include a land-based LNG terminal under a public-private partnership and a floating storage and regasification unit to ensure uninterrupted supply. Pipelines from Bhola to the mainland will strengthen the gas transmission network. Residential households will gradually receive prepaid gas meters to improve accountability. Officials aim to reduce system losses caused by theft and leakage from 6.38 percent to 6.25 percent in the first 100 days, with a long-term goal of 4 percent by 2030. Current losses cost nearly 4,094 crore taka annually.

Over the next five years, the government plans to implement the Energy and Power Sector Master Plan 2026, update gas marketing regulations and introduce integrated LPG policies. Infrastructure projects include a new energy terminal at Chittagong port, channel dredging to improve logistics, upgrading the Barapukuria coal mine and exploring offshore and coastal mineral resources. Research into alternative energy sources, including coal-bed methane, underground coal gasification and green hydrogen, is also emphasised to diversify energy supply and support climate resilience.

Digital initiatives include an interactive ministry portal, operational dashboards, an automated licensing system for explosives and a workforce attendance app, all aimed at improving transparency and efficiency.

Officials said production-sharing contract models will be finalised within the first 100 days, with bidding expected to be completed this year and agreements targeted by 2027. The initiative follows previous efforts to attract global investors to offshore exploration after maritime boundary settlements opened opportunities in the Bay of Bengal, although earlier rounds struggled amid political transition and market uncertainty.

Ensuring uninterrupted power during Ramadan and the irrigation season has been identified as an immediate priority. Boosting domestic production is central to the roadmap. By fiscal year 2026–27, officials aim to add around 652 million cubic feet of gas per day, supported by additional drilling rigs and expanded operational capacity.

Policy reform is another major focus. The government plans to update regulations, restructure state-owned companies, split Titas Gas into separate entities and consolidate subsidiaries under Bangladesh Petroleum Corporation to improve governance and efficiency. Modernisation of refining capacity is progressing, including the expansion of the Eastern Refinery and operational arrangements for offshore fuel import facilities. Geological surveys for coal and other minerals, including heavy minerals in rivers and offshore zones, will guide long-term resource planning.

Analysts note the roadmap reflects a broader challenge for Bangladesh: expanding energy supply to support growth while avoiding long-term dependence on carbon-intensive infrastructure in one of the world’s most climate-vulnerable countries. Rising sea levels, stronger cyclones and recurrent flooding underscore the urgency of integrating climate considerations.

Farah Anzum, Bangladesh Lead at the Global Strategic Communications Council, said integrating climate into energy planning is critical. “Expanding renewable energy and improving efficiency is not only important for the environment but also for the economy. Investing in climate solutions strengthens infrastructure, reduces financial risks and supports sustainable growth,” she said.

Investor confidence and financing will shape the success of the reforms, particularly as large projects require significant capital and long-term policy stability. Regional cooperation, including cross-border power trade and energy connectivity, remains important for supply security and diversification.

Sohanur Rahman, Executive Coordinator of YouthNet Global, highlighted the importance of a just transition. “Expanding domestic energy should not come at the cost of locking Bangladesh into long-term fossil dependence. The government should simultaneously scale up renewable energy, efficiency and protection for communities on the climate frontline,” he said.

If implemented effectively, the 100-day roadmap could stabilise supply, improve governance, attract investment and show how climate-vulnerable delta countries can pursue development alongside energy transition.

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