Bangladesh Oil and Gas Market Overview
Bangladesh’s oil and gas market plays a vital role in sustaining the country’s fast-growing economy, with natural gas serving as the dominant primary energy source. The country relies heavily on indigenous gas production to meet industrial, power generation, and residential needs, contributing to over 60% of its total energy mix. However, declining production from mature gas fields and rising demand from a rapidly expanding population and economy have led to increasing reliance on LNG imports. State-owned Petrobangla and its subsidiaries dominate the sector, overseeing exploration, production, and infrastructure management, while foreign firms participate in limited upstream ventures. As of 2024 and into 2025, the government continues to prioritize energy diversification, increased investment in offshore exploration, and LNG terminal expansion to bridge the growing supply-demand gap. Policy reforms, strategic partnerships, and infrastructure upgrades are being advanced to secure energy security, reduce import dependency, and attract foreign investment into the country’s oil and gas value chain.
Bangladesh’s oil and gas industry is structured around an integrated upstream, midstream, and downstream network, largely steered by public sector enterprises. In the upstream segment, domestic gas production is concentrated in the eastern part of the country, with key fields including Titas, Bibiyana, and Kailashtila. These assets are operated by companies such as Bangladesh Gas Fields Company Limited (BGFCL), Sylhet Gas Fields Limited (SGFL), and Chevron Bangladesh. However, production is declining, prompting new offshore exploration efforts in the Bay of Bengal. Midstream infrastructure includes a national pipeline network for gas transmission managed by Gas Transmission Company Limited (GTCL), along with Floating Storage and Regasification Units (FSRUs) at Moheshkhali to accommodate LNG imports. Additional onshore terminals are planned to enhance regasification and supply capacity. In the downstream segment, Bangladesh has one major refinery, Eastern Refinery Limited (ERL), which is undergoing modernization to improve fuel quality and processing efficiency. The downstream sector also includes city gas distribution networks, CNG filling stations, and fuel import terminals, with expansion efforts underway to meet growing urban and industrial demand.
Bangladesh Oil and Gas Market Latest Developments
In January 2025, the government initiated the renovation of 31 aging natural gas wells under a national plan to refurbish 100 wells by 2028, aiming to stabilize and boost domestic gas production.Petrobangla extended the international bidding deadline for offshore exploration blocks to December 2025, offering 24 blocks in the Bay of Bengal to attract foreign investment in untapped reserves.
Argent LNG signed a preliminary agreement in early 2025 to supply Bangladesh with up to 5 million tonnes of LNG annually from a planned U.S.-based liquefaction terminal, expected to commence deliveries post-2027.
Chevron resumed development work on the Jalalabad gas compression station in 2025, allocating an estimated $65 million to enhance pressure and extend the life of the field.
Summit Group formally challenged a termination notice from Petrobangla over its proposed third FSRU terminal in southeast Bangladesh, continuing efforts to develop a 600 mmcfd regasification facility.
The well renovation campaign is a critical short-term measure to restore production from existing fields and slow the rate of decline in domestic supply.
Bangladesh is shifting focus from reliance on existing mature fields to unlocking new offshore gas reserves through competitive licensing and investment incentives.
The Argent LNG deal underscores Bangladesh’s growing dependence on long-term LNG contracts to address seasonal shortages and mitigate exposure to spot market volatility.
Chevron's continued infrastructure investments reflect its commitment to field sustainability and its strategic importance as the country’s largest producer.
Midstream upgrades like compression stations are necessary to maintain flow rates as reservoir pressures decline in aging fields.
The offshore bidding extension indicates that investor appetite remains cautious, requiring additional time and regulatory clarity to encourage participation.
Long-term LNG deals with diversified suppliers such as the U.S. provide greater flexibility and resilience in Bangladesh’s import portfolio.
The dispute over the third FSRU highlights regulatory uncertainty and conflicting interests between public and private stakeholders in infrastructure development.
If completed, the proposed FSRU terminal would significantly enhance Bangladesh’s LNG import capacity, vital for meeting growing urban and industrial demand.
The combination of well rehabilitation, exploration initiatives, LNG procurement, and infrastructure expansion illustrates a broad-based strategy to achieve gas security and energy diversification in the face of rising consumption and declining reserves.
Bangladesh Oil and Gas Market Report Scope
The "Bangladesh Oil and Gas Strategic Analysis and Outlook to 2032" is an all-encompassing report that delivers a full-spectrum evaluation of the nation’s oil and gas value chain—from exploration and production fields, refinery and LNG plant operations, to midstream pipelines and storage infrastructure in Bangladesh. Leveraging robust methodologies and proprietary databases, the study provides detailed asset-level data, historic and forecasted supply-demand trends (2015–2032), and a clear understanding of how recent developments, government policies, and market dynamics shape the sector. The Bangladesh Oil and Gas report equips industry stakeholders with actionable insights for investment, benchmarking, and strategic planning by profiling operational assets, new projects, and the competitive landscape across upstream, midstream, and downstream segments.
Comprehensive market analytics are complemented by SWOT and investment opportunity analysis, highlighting growth drivers, operational risks, sector-specific challenges, and capital requirements. The study evaluates key companies’ strategies, performance, and market positions, providing an integrated view of where opportunities and bottlenecks exist. The scope extends to Bangladesh field-wise production, refinery-wise capacity, LNG terminal operations (including liquefaction and regasification units), and product flows through pipelines and storage. The research not only answers core market questions but also uncovers the evolving dynamics that will influence the future trajectory of Bangladesh country’s oil and gas industry.
- Bangladesh Asset-by-asset data covers all existing and upcoming oil and gas fields, refineries, LNG terminals, pipelines, and storage facilities, providing a granular view of national infrastructure.
- Historic and projected supply-demand analysis for crude oil, natural gas, and key refined products (gasoline, diesel, LPG, fuel oil, etc.) from 2015 to 2032.
- Recent developments, regulatory changes, and major project announcements are analyzed for their impact on market fundamentals and investment climate.
- Segmented insights into upstream (exploration and production), midstream (pipelines, LNG, storage), and downstream (refining, distribution) operations.
- Comprehensive overview of LNG sector including liquefaction and regasification terminals, contracted versus available capacity, and future outlook.
- Bangladesh Oil and Gas Industry SWOT analysis and sector-wise benchmarking to evaluate industry strengths, challenges, opportunities, and potential risks.
- Bangladesh Investment analysis detailing sector growth potential, required capital for new projects, and feasibility of ongoing and planned developments.
- Competitive landscape profiling of leading companies, with business strategies, operational performance, and market shares.
- Infrastructure benchmarking by market concentration in pipelines, refining, LNG, and storage segments, including capacity and utilization rates.
- Answers to key market questions, including evolving Bangladesh supply-demand dynamics, project status, leading market participants, and the future outlook for capacity, trade, and investment.
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FAQ's
The Bangladesh Oil and Gas report provides comprehensive intelligence from upstream to downstream—covering exploration blocks, field-level production, refinery operations, LNG terminals, and supply-demand analytics. It empowers executives and investors with actionable insights to assess risks, evaluate opportunities, and optimize Bangladesh market entry or expansion strategies.
Yes, the report presents detailed data and analysis for all relevant segments present in the country—whether upstream (exploration and production), midstream (LNG terminals, storage facilities, pipelines), or downstream (refineries). This sector-specific granularity ensures accurate benchmarking, planning, and forecasting tailored to the Bangladesh oil and gas infrastructure.
With detailed coverage of exploration opportunities, trade contracts, regulatory frameworks, and infrastructure projects, the Bangladesh oil and gas report serves as a critical tool for stakeholders formulating investment strategies, negotiating partnerships, or aligning with national energy policies.
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