Bangladesh Focuses on Domestic Gas Exploration and Blue Economy: Home Minister Salahuddin

Dhaka, August 8, 2026 — Home Minister Salahuddin Ahmed has announced that the current government is prioritising domestic gas exploration, marine resource extraction, blue economy development, and energy source diversification — a strategic pivot that could fundamentally reshape Bangladesh's approach to energy security and economic development.

🌏 "Unless We Extract Deep Sea Resources, We Will Lag Behind"

"Unless we extract the resources of the deep sea and harness the potential of the blue economy... we will lag behind. Why not start it from today? That is why we have made plans," the home minister said while addressing a programme marking the 27th founding anniversary of the Chattogram Journalist Forum Dhaka (CJFD) at the All Community Club in Gulshan on Friday night.

The minister's emphasis on domestic gas exploration and marine resources represents a significant shift in Bangladesh's energy strategy — moving away from the heavy reliance on imported LNG that has left the country vulnerable to supply disruptions during the Middle East conflict. Since the US-Iran war began in February, Bangladesh's long-term LNG suppliers (QatarEnergy and OQ Trading) have invoked force majeure, forcing the country to purchase 41 spot cargoes by August — 39 of them since the war started.

🛢️ Domestic Gas Exploration: The Untapped Potential

Bangladesh has significant untapped domestic gas resources, particularly in the Bay of Bengal, where exploration has been limited by technical challenges, maritime boundary disputes (now resolved), and insufficient investment. The country's domestic gas production has been declining steadily for several years — from approximately 2,400 mmcfd in 2020 to around 1,650 mmcfd in 2026 — while demand has grown to 3.8 bcf/day, creating a structural shortfall that has been filled by increasingly expensive LNG imports.

The government's renewed focus on domestic exploration could include:

• 🔍 Onshore exploration: Accelerated drilling in existing fields (Titas, Bakhrabad, Habiganj) and new exploration blocks
• 🌏 Offshore exploration: Deep-sea drilling in the Bay of Bengal, where Bangladesh settled maritime boundaries with India and Myanmar in 2012 and 2014 respectively
• 👥 International partnerships: Collaborating with international oil companies (IOCs) for technology transfer and risk-sharing
• 💰 Investment incentives: Creating attractive terms for exploration companies to invest in Bangladesh's offshore blocks

Energy experts have long noted that Bangladesh has a higher-than-global-average success rate in discovering gas fields relative to exploration efforts — yet the country has not conducted adequate exploration. Even 14 years after settling its maritime boundary, Bangladesh is yet to discover oil or gas in the Bay of Bengal — a gap the government now appears determined to address.

🐳 Blue Economy: Beyond Oil and Gas

The minister's emphasis on the "blue economy" extends beyond oil and gas to encompass the full range of economic activities associated with the ocean. For Bangladesh, with its long coastline along the Bay of Bengal, the blue economy encompasses:

• 🐟 Fisheries and aquaculture: Marine fisheries, shrimp farming, and deep-sea fishing
• 🚢 Maritime transport: Port development, shipping, and logistics (Matarbari deep-sea port, Chattogram port expansion)
• 🧴 Marine biotechnology: Pharmaceutical and chemical products from marine organisms
• ☀️ Renewable energy: Offshore wind, tidal energy, and ocean thermal energy conversion
• 🛣️ Coastal tourism: Sustainable tourism development along Cox's Bazar and the Sundarbans
• 📍 Seabed mining: Exploration for mineral resources on the continental shelf

The World Bank has estimated that Bangladesh's blue economy could generate $6-8 billion in annual GDP contribution if properly developed — a significant increase from the current level, which is dominated by fisheries and shipping. The minister's call to "start from today" suggests a new urgency in unlocking this potential.

🟡 Green Energy Expansion and Diversification

The home minister also highlighted the government's commitment to expanding green energy and diversifying energy sources — a theme that aligns with the August 7 restoration of the payment guarantee mechanism for renewable energy projects. Bangladesh currently has an installed renewable energy capacity of 1,822 MW against a target of 10,000 MW by 2030 — a gap that requires massive investment in solar, wind, and other clean energy technologies.

The energy diversification strategy also includes the government's plans to stockpile 100,000 tonnes of fuel at Matarbari and build two additional FSRUs there — announced by the same minister at the same event. Together, these initiatives represent a comprehensive energy security framework that addresses both supply-side (domestic exploration, LNG infrastructure) and demand-side (renewable energy, efficiency) challenges.

🏛️ Strategic Context: Breaking the Import Dependency

The minister's announcement comes at a time when Bangladesh's energy import dependency has reached historic highs. The country now imports approximately 35-40 percent of its daily gas supply as LNG — a figure that was near zero just a decade ago. This import dependency has created several vulnerabilities:

• ⚠️ Supply disruption risk: Force majeure from Qatar and Oman during the Middle East conflict
• 💰 Price volatility: Spot LNG prices surge during crises, straining the fiscal budget
• 💸 Foreign exchange drain: LNG imports consume billions in foreign exchange annually
• 📊 Industrial impact: Gas shortages have forced factories to operate at 30-50% capacity

By pivoting toward domestic exploration and blue economy development, the government is signalling its intent to reduce this import dependency over the medium to long term — even as it continues to manage the immediate crisis through spot cargo purchases and infrastructure repairs.

💬 Focusing on Chattogram

The minister, who is also the MP for Cox's Bazar, focused significant attention on Chattogram — Bangladesh's main port city and the gateway for the majority of the country's export trade. The choice of venue (the CJFD anniversary) and the minister's emphasis on Chattogram's development reflects the government's recognition that the port city's infrastructure — from energy to transport to logistics — is critical to Bangladesh's export competitiveness.

The announcement of the Dhaka-Chattogram high-speed rail project (discussed separately by the minister at the same event) complements the gas exploration and blue economy agenda — together representing a comprehensive vision for Bangladesh's economic infrastructure that goes beyond crisis management to long-term strategic positioning.

✅ What Comes Next

The government's plans for domestic gas exploration and blue economy development will require significant policy reforms, investment incentives, and international partnerships. Key next steps will likely include: accelerating the bidding process for offshore exploration blocks, finalising the blue economy policy framework, establishing marine research institutions, and creating investment vehicles that can attract both domestic and international capital. For a country that has been forced to import an increasing share of its energy at premium prices, the shift toward domestic resources — if executed effectively — could be the most consequential economic policy decision of the current government.