Tapping US energy market key to easing energy supply shortage: Bida chief
Since February this year, we have been in discussions with the US on how the trade imbalance can be reduced. A big topic to reduce trade imbalance is LNG, he says
Bangladesh would be able to overcome the energy supply shortage if it could properly tap the American market in addition to Gulf nations, which would also help Bangladesh address the trade imbalance with the United States, Bangladesh Investment Development Authority (Bida) Executive Chairman Chowdhury Ashik Mahmud Bin Harun said today (6 April).
"Since February this year, we have been in discussions with the US on how the trade imbalance can be reduced. A big topic to reduce trade imbalance is LNG," he said while responding to a question on smooth energy supply to the industrial sector.
Chief Adviser's Press Secretary Shafiqul Alam, Deputy Press Secretaries Apurba Jahangir and Abul Kalam Azad Majumder were also present at the briefing that highlighted the various aspects of the four-day Bangladesh Investment Summit 2025.
Keep updated, follow The Business Standard's Google news channel
The Bida executive chairman said the Trump Administration has decided that they will export LNG. "We have already talked to the US," he said, adding that the US is a new source of energy beyond the Gulf market.
Ashik said Bangladesh extracts 50 percent of the total gas supply domestically while it imports the rest of the 50 percent from the global market.
He said they faced problems due to the dollar crisis which became a reputational issue in terms of payment failure. "Now, the forex reserves reach a stable position."
Ashik said they will be able to make the payment when forex reserves remain stable and it will significantly become easy for importing energy.
He said the previous government had done many long-term contracts and these will become effective from January 2026 and the pressure will naturally come down after that.
Sharing his personal recommendation, Ashik said industrial gas supply should be guaranteed by the government which is seen in many countries. "Eventually, we will have to move towards that direction as classic consumers don't need heavy pressure gas," he said.
Bangladesh imports over 8 million metric tonnes of crude oil annually, with 80 per cent sourced from the Middle East, particularly Saudi Arabia and the UAE.
In January, according to the BIDA, the government of Bangladesh signed a transformative Heads of Agreement (HOA) with Louisiana-based Argent LLC for the purchase of up to 5 million metric tons of liquefied natural gas (LNG) annually.
US President Donald Trump's "Drill, Baby, Drill" energy mandate, promoting the exploration and export of US energy resources, provided the foundation for this agreement.
"Petrobangla has been seeking long-term solutions to the rising demand for energy in Bangladesh. This agreement not only ensures a reliable energy supply for Bangladesh's expanding industrial base but also strengthens our strategic partnership with the United States," said Ashik during the signing ceremony.
He added that by embracing the principles of 'America First' and 'Bangladesh First,' this collaboration highlights a fair, balanced and mutually beneficial approach that harnesses the strengths of both nations to drive economic growth, regional stability, and shared prosperity for people.
