This document provides an overview of Bangladesh's energy sector, including its main sources of energy like natural gas, petroleum, coal, and electricity. Natural gas plays an important role in Bangladesh's economy and is used for domestic, industrial, and agricultural purposes. While gas production and electricity generation have increased over time, demand continues to outpace supply. Bangladesh relies heavily on natural gas but reserves are only sufficient until 2021, so alternatives will need to be developed. The electricity sector has also expanded generation capacity in recent years through both public and private sector investments, but aging infrastructure and gas shortages have prevented peak capacity from being reached. Petroleum production is low so Bangladesh imports most of its oil needs.

1. Energy Sector of
Bangladesh

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Table of Content
Title Page no.
Executive Summery 03
Introduction 04
Energy Sector Structure of Bangladesh 04
Natural Gas 05
Gas Production in Bangladesh 05-06
Gas Consumption 06-07
Electricity 07
Electricity demand and Generation Capacity 08
Petroleum 08
Industry organization 08-09
Selected statistics of Petroleum of
Bangladesh.
09-10
Coal 10-11
Conclusions 11
References 12

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Executive Summery
A brief overview of current energy sector in Bangladesh has been presented in this paper. The
study has been based on different analytical information and data analysis collected from
several website and journal. The major sources for energy in Bangladesh are coal, Petroleum,
natural gas and electricity. Being a developing country, the electric energy, Gas, oil and Coal
demand in Bangladesh has been increasing. Production of Gas, petroleum, electricity and
coal also increasing but it does not exceed current demand.

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1. Introduction
Energy plays a key role for the economic development of human societies. It has a huge
potential and pool of resources, in the light of increasing its productive capability. But this
needs to be aptly backed up by the increasing supply of energy factors. Many economists
have considered energy as an additional variable in the production function. They believe that
the typical factors of production like capital and labor can’t perform to their fullest potential
if there’s an inefficient use of energy (David.n.d). Moreover, energy is vital for the necessary
transition to a more equitable and Sustainable world and one where all have access to the
energy services required for comfort and for a secure and healthy livelihood.
The major sources for energy in Bangladesh are coal, Petroleum, natural gas and electricity.
Non-energy producing sectors derive energy from the resources available in primary form
such as coal, crude oil, natural gas, hydro-power and nuclear power. Some of the energy
resources are converted into other (final) energy products that are used for purposes other
than energy generation. Coal is also used as a final product or intermediate for power
generation. Similarly, natural gas is also used directly or as an intermediate in power
generation. Many petroleum products are used as a final product by the non-energy producing
sectors and also used for power generation. This indicates that the same energy source can be
used in various forms at various stages of consumption.
2. Energy Sector Structure of Bangladesh
According to the source of energy, we can represent the sector in the following structure:

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2.1. Natural Gas
Bangladesh has always been considered a natural gas rich country. It is largely available in
the eastern part of the country extending from greater Sylhet down to greater Comilla,
Noakhali and Chittagong. It has also been discovered offshore in the Bay of Bengal.
Natural gas plays an important role in the country's economy. It is an environment friendly
fuel, which undergoes clean and odorless combustion. It is widely used as fuel for domestic
(cooking and heating), industrial (metallurgical, ceramic, glass, bread and biscuits, power
stations, cement works, factory process steam boilers, etc) and agricultural (drying, heating,
steam boilers) use. LIQUEFIED PETROLEUM GAS (LPG), LIQUEFIED NATURAL GAS
(LNG), COMPRESSED NATURAL GAS (CNG) are obtained from natural gas and are used
as fuels in domestic, industrial and agricultural applications. In chemical industries natural
gas is used as feedstock for the manufacture of fertilizers, plastics, resins, rubbers, and
various chemicals such as carbon black, detergents, ammonia, nitric acid, weed killers, etc.
Natural gas from Bangladesh is very pure, with about 95% to 99% methane and almost no
sulphur. The average compositions are 97.33% methane, 1.72-% ethane, 0.35% propane and
0.19% higher hydrocarbons. Gas in most of the fields is dry, but in a few fields it is wet, with
considerable amounts of condensate, eg at Beanibazar (16 bbl/mmcfg), Jalalabad (15
bbl/mmcfg), and Kailashtila (13 bbl/mmcfg). The total condensate reserve in the country is
estimated at about 65 million barrels[2].
2.1.1 Gas Production in Bangladesh
Source- Petrobangla

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In the FY 2015-16, total 973.2 BCF gas was produced in the country. Two major public
sector gas production companies Bangladesh Gas Fields Company Limited (BGFCL) and
Sylhet Gas Fields Limited (SGFL), added 36.19% of total gas produced during FY 2015-16.
BAPEX was assigned with production activities in 2000. It produced 43.11 BCF gas in FY
2015-16. Total production of these 3 national companies stood 395.3 BCF which was 40.62%
of total production of gas during FY 2015-16. The remaining 577.92 BCF gas was produced
by IOCs (Chevron and Tullow), which was 59.38% of total production of gas during 2015-
16. Compared to the previous year, Chevron produced 17.12% higher while Tullow and
BAPEX produced 4.72% lower and 8.40% higher amount of gas respectively, in FY 2015-16.
BGFCL and SGFL maintained their production almost at the same level of the previous year.
The total production in FY 2015-16 stood at 973.2 BCF, averaging about 2,660 MMSCFD.
Out of this, BGFCL produced 298.27 BCF, SGFL 53.92 BCF, BAPEX 43.11 BCF, Chevron
541.15 BCF and Tullow 36.77 BCF. The major gas producing fields of the companies under
Petrobangla are : Titas Gas Field contributing 19.27%, Habiganj 8.46%, Kailashtila 2.69%,
Rashidpur 2.19% and Fenchuganj 1.32%, whereas major producing fields under IOCs are :
Bibiyana contributing 44.25%, Jalalabad 9.78%, Moulvibazar 1.57% and Bangura 3.78% . At
the end of FY 2015-16, 20 gas fields were in production with 101 flowing wells. Out of these
fields, 5 were operated by BGFCL, 4 by SGFL, 7 by BAPEX, 3 by Chevron and 1 by Tullow.
During the period from July to December, 2016, Chevron and Tullow produced 273.48 BCF
and 17.09 BCF gas respectively while local companies produced 192.76 BCF gas, making
total of 483.34 BCF [3].
2.1.2 Gas Consumption

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In keeping with the increased production, gas sales also showed an upward trend. By the end
of 2015-16 financial year, total sales was 966.9 BCF, of which power sector (Grid + Non
Grid) consumed the largest part amounting to 399.6 BCF followed by fertilizer sector 52.6
BCF, captive power 160.8 BCF, industry 156 BCF, domestic sector 141.5 BCF, and other
non-bulk sectors 56.4 BCF. As in December, 2016 gas sector catered to more than 3.47
million customers of various categories. Most of this customers fall under domestic category;
however, power sector remained the largest consumer [3].
Natural Gas reserve is only sufficient to accommodate the nation up to 2021, under certain
assumptions. It is sufficient to conclude that we have to shift from natural gas dependency to
other source of energy as soon as possible (Haque 2017).
2.2. Electricity
Electricity plays the most basic role in the economic growth through sustainable structure as
well as poverty eradication and security of any country. Reliable electricity supply is a vital
issue for the world today. Future economic growth crucially depends on the long-term
availability of electricity, which are affordable, available and environmentally friendly.
Security, climate change, and public health are closely interrelated with electricity. In line
with this aspect, Bangladesh Government designed an extensive power generation plan to
create sustainable growth of power sector and for overall development of the country
economy.
Present installed generation capacity in public, private & import sector is 13,555MW. Out of
this, public sector possesses 7,582 MW (56%) & import 600MW (4%). Electricity demand is
increasing whereas the available generation also increases against with demand. In the public
sector, a number of generation units have become very old and has been operating at a
reduced capacity. Moreover, most of the existing power plants are gas based. Due to shortage
of gas supply, some power plants are unable to reach their usual generation capability. Up to
date, maximum generation achieved is 9,479 MW on June 7, 2017. At present, 80% of the
total population has access to electricity and per capita generation has increased to 433 kWh
(including captive). Now Bangladesh has shown implausible achievement in power sector.
The target of the government has been implemented successfully and has even been able to
achieve the higher level of growth economic growth [4].

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2.2.1 Electricity demand and Generation Capacity (2016-17)
Demand of electricity is increasing rapidly due to enhanced economic activities in the
country with sustained GDP growth. At present, growth of demand is about 10% which is
expected to be more in coming years. The maximum demand in this fiscal year was 12,644
MW (as per PSMP-2010)[4].
Total installed capacity was 13,555 MW which includes 3,232 MW IPP/SIPP, 1890 MW
Rental Power Plant & 251 MW in REB (for PBS) and 600MW Power Import from India. The
maximum peak generation was 9,479 MW which was 4.90% higher than that in the previous
year. The reasons for lower peak generation with respect to generation capacity were: (i)
some plants are out of operation for maintenance, rehabilitation & overhauling (ii) capacity of
some plants derated due to aging and (iii) gas shortage. The Generation Capacity mix is
shown below:
Source- Bangladesh Power Development Board (2016-17)
2.3 Petroleum
Bangladesh has low level of domestic reserves of petroleum along with insignificant
production capacity. Relatively, high level of consumption has made it a net oil importer
country.
2.3.1 Industry organization
 Exploration, Production and Import

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Exploration and production activities are primarily carried out by the Bangladesh Petroleum
Exploration and Production Company (BAPEX). However, the country has also initiated
several Production Sharing Contracts (PSCs) with foreign oil companies. Bangladesh
Petroleum Corporation (BPC) is responsible for import of petroleum products.
 Refining and Blending
Under a Processing Agreement with BPC, Eastern Refinery Limited ERL processes crude oil
imported by BPC and delivers the finished petroleum products to the other subsidiaries of
BPC for marketing and distribution. Also, Eastern Lubricants Blenders Limited (ELBL) and
Standard Asiatic Oil Company Limited (SAOCL) are responsible for blending of Lubricating
Oils and greases on behalf of Petroleum Marketing Companies.
 Distribution
In the downstream, Padma Oil Company Limited (POCL), Jamuna Oil Company Limited
(JOCL), Meghna Petroleum Limited (MPL) and LP Gas Limited (LPG) is participating in
distribution activities of petroleum products.
2.3.2 Selected statistics of Petroleum of Bangladesh.
Petroleum Products Bangladesh Petroleum Corporation (BPC) imports, acquires, stores and
markets petroleum products. The current storage capacity of petroleum products is around
12.21 lakh M T. BPC has taken a project titled ‘Installation of ERL Unit-2’ to increase
processing capacity of existing refinery from 15.00 lakh MT to 45.00 lakh MT to strengthen
energy security of the country. ‘Installation of Single Point Mooring (SPM) with Double
Pipelines’ project has been taken for receiving importable crude and refined petroleum from
mother vessels at the Bay of Bengal to ensure in smooth and cost effective manner.
Information regarding imported crude oil and refined petroleum products during FY2005-06
to FY 2016-17[6]. Following table represents key statistics of petroleum of Bangladesh

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Table: Import of Crude Oil
Table: Import of Refined Petroleum Products
2.4 Coal
BMD granted mining lease of coal in 1994 in favor of Barapukuria Coal Mining Company
Limited (BCMCL) (a company of Petrobangla) at Barapukuria of Parbatipur Upazila in
Dinajpurdistrict. At present coal is being produced from this mine. As on 30 June 2017
cumulative production of BCMCL was 92,40,718.75 MT and in FY2016-17 the production
was 11,60,657.81 MT. Besides, coal, some good quality peats are available in different parts
of the country. The total peat reserve (dry peat) discovered in Bangladesh is 146.36 million
MT [6]. At present no commercial utilization of peat exists in Bangladesh.

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Besides,in 2008 an exploration license was granted in favour of Petrobangla for the coal field
at Dighipara of Nawabgonj upazila in Dinajpurdistrict. In order to develop Dighipara coal
field, the exploration license agreement with Petrobangla was assigned in favour of
Barapukuria coal mining company Ltd. on 21 October 2015.the following Table shows the
coal fields of Bangladesh with their mentionable attributes.
Table: Coal Fields of Bangladesh
Source: Bangladesh Economic Review 2017
3. Conclusions
From the above findings, it may be concluded that because of the lack of prudent policy making and
implementation, the country is facing energy shortage right at this moment. Sustainable energy
growth is a must for the sustainable economic growth. For a sustainable energy growth, the country
would have to shift to renewable source of energy while, an excellent mix of various source of energy
in the intermediate period is essential to support current economic development.

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References
1. Stern David(n.d).Economic Growth and Energy. Retrieved from
http://sterndavidi.com/Publications/Growth.pdf
2. Haque Shaikh (2017), Prospect of Gas Reserves in Bangladesh. Retrieved from
http://www.daily-sun.com/printversion/details/269194/Prospect-of-Gas-Reservesin-
Bangladesh
3. Annual report 2016, Petrobangla .Retrieved from
https://petrobangla.org.bd/admin/attachment/webtable/596_upload_0.pdf
4. Annual Report 2016-17, Bangladesh Power Development Board. Retrieved from
http://www.bpdb.gov.bd/download/annual_report/Annual%20Report%202016-17%20.pdf
5. Annual report , Bangladesh Petroleum Corporation. Retrieved from
http://www.bpc.gov.bd/view_annual_report.php
6. Bangladesh Economic Review 2017, Chap 10, Power and Energy. Retrieved from
http://mof.portal.gov.bd/sites/default/files/files/mof.portal.gov.bd/page/e8bc0eaa_463d_4cf9_
b3be_26ab70a32a47/Ch-10%20%28English-2017%29_Final.pdf