📌 Bangladesh Mineral & Energy Resources: In-Depth Overview with References
- Niaz Murshed Chowdhury
- 4 days ago
- 5 min read
📌 Bangladesh Mineral & Energy Resources: In-Depth Overview with References
Writer: Niaz Murshed Chowdhury
1️⃣ Introduction: Bangladesh’s Unique Geology
Bangladesh’s entire geological identity is rooted in the Bengal Basin — one of the largest and youngest sedimentary basins on earth. Stretching across Bangladesh and parts of India and Myanmar, this basin acts as a massive natural storehouse for various mineral resources. The country’s land surface can be divided into three geological zones:
About 80% is covered by Holocene deposits — these are loose, unconsolidated sands, silts, and clay formed in the last 10,000 years by the mighty Ganges-Brahmaputra river system. These fertile sediments are great for agriculture but less so for hard rock mining.
12% consists of Tertiary folded sedimentary rocks, mainly in the north and eastern hill tracts like Sylhet and the Chittagong Hill Tracts — regions with folded anticlines that hold trapped gas and oil.
The remaining 8% is the Pleistocene terraces, older uplifted land like the Barind Tract and Madhupur Tract that preserve ancient soils, sometimes used for brick clay and minor minerals.
Deep below the sediments lie even older Precambrian basement rocks, proven through boreholes in the northwest (Dinajpur, Rangpur) — these store coal seams and potential hard rock deposits.
📚 Key reading: Geology of Bangladesh by Alam et al., 2003
2️⃣ Why Minerals Still Matter for Bangladesh’s Economy
For any developing country, secure access to mineral resources is a cornerstone for growth. Minerals power the cement we build with, the roads we drive on, the fertilizers that feed our fields, and the fuels that light our homes and industries. For Bangladesh, the natural gas reserves have been the single largest energy backbone for decades. Other minerals like limestone, clay, glass sand, coal, and beach mineral sands provide opportunities for cement, ceramics, and construction material.
However, in reality, the full mineral base is modest compared to large resource economies. Hence, Bangladesh must carefully manage its reserves to balance extraction, environmental sustainability, and long-term energy security. Mismanagement or over-extraction could lead to energy crises that hamper industrial progress and everyday life.
✅ 3️⃣ Natural Gas: The Workhorse of Bangladesh’s Energy
Natural gas is the dominant player — without it, Bangladesh’s lights, industries, and fertilizer plants would go dark. Natural gas meets 70–75% of Bangladesh’s commercial energy needs. Over 60% of electricity is gas-fired, and almost all fertilizer factories rely on gas feedstock. Compared to expensive imported oil, domestic gas is affordable — a crucial factor for a developing economy trying to keep costs low and export goods competitively.
Gas is piped across the country via the national transmission network, feeding power plants, heavy industry, city households, and even CNG filling stations for vehicles.
📊 Current Gas Numbers in Perspective
As of 2024–25:
Bangladesh has discovered 28 gas fields, with two offshore.
About 20 are actively producing.
The country’s total proven recoverable reserves are estimated at ~20.7 trillion cubic feet (TCF) — plus 6.4 TCF in probable reserves.
To date, over 16 TCF has already been extracted, meaning nearly two-thirds of the original reserves have been used.
The daily average output is about 2,400–2,500 MMCFD (million cubic feet per day).
But demand is closer to 3,000 MMCFD — leaving a persistent shortfall of ~500–700 MMCFD.
To fill the gap, Bangladesh now imports costly LNG — liquefied natural gas shipped in from abroad, regasified at coastal terminals in Moheshkhali and Meghnaghat.
🔍 4️⃣ How Did the Gas Sector Emerge?
Bangladesh’s modern gas era has deep roots. Exploration began under British colonial rule:
In 1908, the first well was drilled at Sitakunda — but without success.
Serious finds only came in the 1950s when Pakistan Petroleum Ltd. (PPL) struck gas in Sylhet and Chhatak.
By the 1960s, Shell, the Anglo-Dutch oil major, discovered major fields — Titas, Habiganj, Rashidpur, Bakhrabad. Titas remains one of the largest fields to this day.
The gas was first used to fuel local fertilizer plants (like Fenchuganj) and cement factories (like Chhatak Cement).
After independence in 1971, the state companies took over Shell’s assets — this formed today’s Petrobangla and BAPEX, the national gas champions.
The early focus on domestic gas, instead of imported oil, gave Bangladesh an economic advantage that continues today.
✅ 5️⃣ The Emerging Crisis: Reserves Running Out
The big challenge now is depletion. Without significant new finds, proven reserves could run out in 8–12 years, experts warn (ADB 2022, World Bank 2022). Chevron’s Bibiyana field — Bangladesh’s largest — is producing over half of the daily supply, but high production could cause faster depletion, as happened with the offshore Sangu field, which dried up earlier than expected.
Meanwhile, the country’s rising population, new industries, and bigger cities are pushing gas demand up by 8–10% every year. This means Bangladesh must:
Speed up new exploration (onshore and offshore)
Tap deep-sea gas potential in the Bay of Bengal
Expand LNG import capacity — despite the high foreign exchange cost
Reference: Southeast Asia Energy Outlook, IEA 2023.
✅ 6️⃣ Petroleum Products & Oil Refining
Bangladesh still imports about 1.3 million metric tons of crude oil yearly — mostly refined at the Eastern Refinery Limited (ERL) in Chittagong. But this only meets part of the demand.
So, Bangladesh also imports ~2.7 million metric tons of refined oil products directly: diesel, furnace oil, petrol. These fuels power the transport sector (buses, trucks), irrigation pumps, and backup generators.
The dependence on oil imports strains foreign currency reserves — especially when global oil prices spike. Expanding domestic refining and storage capacity is a major policy goal.
🚙 7️⃣ CNG: Greener Urban Transport
Compressed Natural Gas (CNG) is a big success story. Launched in the late 90s, the CNG program helped:
Cut oil imports.
Reduce urban smog in Dhaka.
Save millions in foreign exchange.
Today:
Bangladesh has over 587 CNG refueling stations.
About 213,000 vehicles, including buses and minibuses, run on CNG.
Over 75% of Dhaka’s buses use CNG — making urban transport cleaner.
Reference: Department of Explosives, BRTA Annual Report.
🏠 8️⃣ LPG: A Rural Solution
For rural or remote households far from gas pipelines, Liquefied Petroleum Gas (LPG) is a vital alternative. It reduces dependence on imported kerosene or biomass fuel.
Today, Bangladesh consumes about 95,000 metric tons of LPG each year — mostly supplied by private companies like Bashundhara and Beximco. But the potential market is more than 200,000 metric tons, if supply chains and affordability can improve.
To support adoption, the government has cut duties on stoves and cylinders to make LPG cheaper.
Reference: Bangladesh Petroleum Corporation Annual Report.
✅ 9️⃣ Future Outlook: Energy Security at a Crossroads
Bangladesh’s next decade will shape whether it can secure enough affordable energy to keep industries growing and families supplied.
Key parts of the roadmap:
Ramp up exploration of untapped onshore and deep-sea blocks.
Expand LNG imports through new terminals (Summit, Excelerate).
Diversify with more coal, nuclear, and renewables.
Expand cross-border power trade — today, 1,160 MW comes from India; future deals with Nepal and Bhutan could add clean hydro to the mix.
Scale up offshore wind and solar parks to cut carbon emissions and import costs.
✅ 10️⃣ Final Reflection
Bangladesh’s gas era has powered decades of progress. But the next chapter must be written with bold investment, smart policy, and stronger regional cooperation. Minerals, hydrocarbons, and renewables — all must work together to keep the lights on and industries growing for the next generation.
📚 Core References
Alam et al., Geology of Bangladesh (Elsevier, 2003)
Bangladesh Petroleum Corporation Annual Reports, 2023–2024
Bangladesh Power Development Board (BPDB) Annual Reports
BAPEX & Petrobangla Data Book, 2023
Asian Development Bank (ADB) Country Diagnostics, 2022
IEA Southeast Asia Outlook, 2023
World Bank, Bangladesh Energy Sector Review, 2022
Department of Explosives Reports, 2022–2023
BRTA Annual Transport Report, 2022
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