Finance Minister Amir Khosru Mahmud Chowdhury has said the government is giving the highest priority to expanding domestic gas exploration to strengthen energy security, reduce dependence on imports and support sustainable economic growth.
Presenting the proposed Tk 9.38 lakh crore national budget for FY2026-27 in Parliament, the finance minister proposed an allocation of Tk 14,996 crore for the Power Division and Tk 2,349 crore for the Energy and Mineral Resources Division.
He said the government is working to ensure uninterrupted electricity supply and improve the efficiency of power generation, transmission and distribution systems.
“The government has undertaken initiatives to diversify energy sources to ensure an uninterrupted supply of electricity and energy, while strengthening related infrastructure,” he told parliament.
Highlighting the importance of domestic energy resources, Chowdhury said priority is being given to both onshore and offshore natural gas exploration, alongside strengthening the capacity of Bangladesh Petroleum Exploration and Production Company Limited (BAPEX).
He said the government aims to raise electricity generation capacity to 35,000 megawatts by 2030 while intensifying oil and gas exploration activities.
The finance minister noted that Bangladesh currently imports around 95 percent of its petroleum requirements, about 34 percent of its natural gas demand as liquefied natural gas (LNG) and nearly all of its liquefied petroleum gas (LPG) needs.
To reduce external vulnerabilities, the government has undertaken initiatives to increase domestic oil and gas production, expand petroleum refining capacity and diversify import sources.
Chowdhury said incentives are also being provided for renewable energy adoption and the use of modern technologies to ensure efficient energy consumption in industrial, agricultural and residential sectors.
Reaffirming the government’s long-term vision, he said Bangladesh aims to generate between 30 and 50 percent of its electricity from renewable sources by 2050.
As part of ongoing exploration efforts, plans have been taken to conduct 270 kilometres of geological surveys, 700 line-kilometres of two-dimensional seismic surveys and 700 square kilometres of three-dimensional seismic surveys between FY2025-26 and FY2027-28.
BAPEX is also expected to drill 69 wells and carry out workover operations on 31 wells using its own drilling rigs.
The minister said nine shallow-water blocks and 15 deep-water blocks have been opened to international oil companies for exploration under production-sharing agreements.
He also announced that an action plan is being prepared to connect gas supplies from Bhola to the national grid.
According to the finance minister, the government is encouraging greater private-sector participation and public-private partnerships to attract new investment in the energy sector and support long-term economic development.
