Finance Minister Amir Khosru Mahmud Chowdhury has said the government is placing the highest priority on intensifying domestic gas exploration activities to enhance energy security, reduce external vulnerabilities and ensure sustainable economic growth.
Presenting the proposed Tk9.38 lakh crore national budget for fiscal year 2026-27 in the National Parliament, the minister said an allocation of Tk14,996 crore has been given for the Power Division to ensure an uninterrupted electricity supply and improve the efficiency of power generation, transmission and distribution systems.
He also proposed Tk2,349 crore for the Energy and Mineral Resources Division to strengthen the country's energy security.
"The government has undertaken initiatives to diversify energy sources to ensure an uninterrupted supply of electricity and energy, while strengthening related infrastructure," he said.
Highlighting the government's focus on domestic energy resources, Chowdhury said priority is being given to both onshore and offshore natural gas exploration, alongside strengthening national capacity through Bangladesh Petroleum Exploration and Production Company Limited (BAPEX).
The government, he said, is working to raise electricity generation capacity to 35,000 megawatts by 2030 while intensifying oil and gas exploration to bolster energy security.
"Investment in energy and infrastructure will be further expanded through public-private partnerships to accelerate economic activity and support long-term growth," he added.
The finance minister said the government has undertaken a wide range of initiatives to strengthen energy security through increased oil and gas exploration, higher domestic production, expanded petroleum refining capacity and diversification of import sources.
Currently, Bangladesh imports around 95 percent of its petroleum requirements, about 34 percent of its natural gas demand in the form of liquefied natural gas (LNG) and nearly all of its liquefied petroleum gas (LPG) needs, he said.
To promote sustainable energy development, the government is providing incentives for the adoption of renewable energy and encouraging the use of modern technologies to ensure efficient and cost-effective energy consumption across industrial, agricultural and residential sectors.
Describing energy security and infrastructure development as key components of the government's medium-term strategy, Chowdhury said these efforts are essential for supporting economic recovery and maintaining productive activities.
He also reiterated the government's long-term goal of generating between 30 and 50 percent of the country's electricity from renewable sources by 2050.
As part of ongoing exploration efforts, plans have been adopted to conduct 270 kilometres of geological surveys, 700 line-kilometres of two-dimensional (2D) seismic surveys and 700 square kilometres of three-dimensional (3D) seismic surveys during FY2025-26 to FY2027-28.
Besides, BAPEX plans to drill 69 wells and undertake workover operations on 31 wells using its own drilling rigs.
The minister also said that nine shallow-water blocks and 15 deep-water blocks have been opened to international oil companies (IOCs) for exploration under production-sharing agreements.
An action plan is also being formulated to connect gas supplies from the Bhola region to the national grid.
Meanwhile, initiatives are underway to attract fresh investment through greater private-sector participation, investor-friendly policies and expanded public-private partnerships in the energy sector.