Overview of Bangladesh's Energy Import Structure
Bangladesh's energy system is undergoing a fundamental transformation. After decades of reliance on domestic natural gas, the depletion of gas reserves is forcing a rapid shift toward imported energy sources — LNG, petroleum, and coal. This transition represents the most significant structural change in Bangladesh's economy and signals a major market opportunity for Korean energy companies.
As of FY2024-2025, Bangladesh's annual energy imports total approximately $12 billion, accounting for roughly 17% of total imports. This share is rising every year as domestic gas production declines, and energy imports are projected to reach 25% of total imports by 2030.
LNG Imports: From the Gas Era to the LNG Era
Since Bangladesh began importing LNG in 2018, the fuel's share of the energy mix has expanded rapidly. The country currently operates two FSRUs (Floating Storage Regasification Units), and a third FSRU or an onshore LNG terminal is under active consideration.
| Item | Current Status | 2030 Target | Notes |
|---|---|---|---|
| Annual LNG Imports | Approx. 4 MTPA | 10 MTPA | ~20% annual growth |
| LNG Import Value | Approx. $3.5B | $8B+ | Linked to global prices |
| FSRU #1 (Moheshkhali) | 3.75 MTPA | Operational | Operated by Excelerate |
| FSRU #2 (Payra) | 3.75 MTPA | Operational | Operated by Summit |
| Onshore Terminal | - | 7.5 MTPA | Matarbari under review |
| LNG Suppliers | Qatar, Oman | Diversifying | Australia, U.S. additions |
Petroleum Imports: The Backbone of Transportation and Industry
Petroleum accounts for the largest share of Bangladesh's energy imports at approximately $5.5 billion annually. It is consumed primarily as diesel (transportation and power generation), furnace oil (industrial use), kerosene (rural lighting), and LPG (household cooking). Bangladesh has only one refinery — Eastern Refinery, with an annual capacity of 1.5 million tons — resulting in extremely high dependence on refined petroleum imports.
The LPG market is one of the fastest-growing energy segments in Bangladesh. Government restrictions on household natural gas supply, combined with urbanization, are driving LPG demand growth of approximately 15% per year. Around 30 LPG filling stations are currently in operation, with distribution infrastructure expansion underway. Korean LPG distribution systems (SK Gas, E1) and safety management technologies have clear applicability in this sector.
Coal Imports: The Surge in Power-Generation Coal
Bangladesh's coal imports have surged dramatically since the early 2020s. The commissioning of large coal-fired power plants at Matarbari and Payra has elevated power-generation coal to a critical energy trade item. Annual coal imports have reached approximately 20 million tons, valued at around $2.5 billion.
| Item | FY23 | FY24 | FY25 (E) |
|---|---|---|---|
| Import Volume | 12M tons | 16M tons | 20M tons |
| Import Value | $1.5B | $2.0B | $2.5B |
| Major Suppliers | Indonesia, Australia | Indonesia, S. Africa | Indonesia, Australia, Russia |
| Power Generation Share | 85% | 88% | 90% |
| Industrial Share | 15% | 12% | 10% |
However, with tightening international climate regulations and declining renewable energy costs, the Bangladeshi government is trending toward halting approvals for new coal-fired power projects. The policy direction is to complete plants already under construction while gradually reducing coal's share in power generation after 2030. This is expected to further accelerate the transition toward LNG and renewable energy.
Energy Transition and Renewables
The Bangladeshi government has set a target of increasing the share of renewable energy to 10% of total power generation by 2030. Currently, renewables account for only about 3% (primarily solar), but solar and wind projects are expanding rapidly with support from international development funding and declining technology costs.
Market Entry Strategy for Korean Energy Companies
Bangladesh's energy market is distinctive in that it is not an "import substitution" market but an "import expansion" market. The scale of energy imports is growing every year, and the accompanying infrastructure investment demand is expanding in parallel. Three dimensions of opportunity exist for Korean energy companies.
Bangladesh's energy transition is both inevitable and irreversible. The structural depletion of domestic gas reserves is forcing the shift to LNG and renewable energy, generating over $12 billion in annual energy imports and billions more in infrastructure investment along the way. If Korean energy companies engage strategically during this transition period, Bangladesh could become a new energy business hub alongside the Middle East and Southeast Asia.