In recent years, Bangladesh has become a prominent success story in Asia, with oil and gas playing a crucial role in its economic growth. The country’s energy consumption is closely linked to its development, and it is projected to become the 24th largest economy by 2033 and a developed country by 2041.
Natural Gas Reserves: Natural gas constitutes 41% of Bangladesh’s primary energy use. The country has significant gas reserves, estimated at 28 trillion cubic feet (Tcf). Recent discoveries and assessments suggest even greater potential. Gas production has increased from 1,744 to 2,650 million standard cubic feet per day (MMSCFD) over the past decade.
LNG Infrastructure: To meet rising energy demands, Bangladesh has installed two floating storage and regasification units (FSRUs) at Moheshkhali, each with a 500 MMSCFD capacity, and is developing a land-based LNG terminal at Matarbari with a 1,000 MMSCFD capacity. Long-term contracts with Qatar Gas and Oman Trading International ensure steady LNG supply.
Oil Reserves and Imports: Bangladesh’s oil reserves are modest, with 30 million barrels and a production capacity of 4,105 barrels per day. The country relies heavily on imported refined petroleum, importing most of its 5.89 million tonnes demand from suppliers like ADNOC and Saudi Aramco.
Government Policies: The government focuses on gas exploration and production, relying on international oil companies (IOCs) for offshore activities. The National Energy Policy 2004 (NEP 2004) and the Ingenious Natural Oil/Gas Exploration Policy, 2019, aim to attract investment and reduce import dependency through advanced exploration methods.
Legal Challenges in the Oil, Gas, and Natural Resources Sector in Bangladesh: Bangladesh’s growing oil and gas sector faces numerous legal challenges, including disputes over exploration rights, production sharing agreements, environmental compliance, and regulatory issues. Navigating these complexities requires specialized legal expertise.
At K.M. Hasan & Jurists, we provide extensive legal support for clients in the oil, gas, and natural resources sector. Our services include regulatory compliance, contract negotiation, litigation, arbitration, and environmental regulation adherence. Our expertise ensures clients navigate sector complexities effectively, supporting their strategic goals.
Our commitment to excellence makes us a trusted partner for businesses seeking proficient legal counsel in this dynamic industry.