Tk 17,345 Crore Proposed for Power and Energy Sector to Strengthen Energy Security
Published : 20:12, 11 June 2026
The government has proposed an allocation of Tk 17,345 crore for the power and energy sector in the national budget for the fiscal year 2026–27, aiming to strengthen the country’s energy security and electricity infrastructure.
Finance Minister Amir Khasru Mahmud Chowdhury announced the allocation while presenting the national budget in Parliament on Thursday.
He said the allocation reflects the importance of the sector and will be used to enhance capacity, stability, and efficiency in the coming fiscal year.
Past Challenges and Policy Reforms
The finance minister stated that long-standing policy weaknesses, institutional irregularities, and overdependence on imports had pushed the energy sector into crisis in the past, with insufficient focus on domestic gas exploration, refining capacity, and storage expansion.
He added that recent geopolitical tensions in the Middle East led to a sharp rise in global LNG and fuel prices, but the government has managed the situation through subsidies and limited price adjustments to protect consumers.
Gas and Supply Strategy
Gas supply has been kept stable, and prices remain unchanged, he noted.
Efforts are underway to revise the Model Production Sharing Contract (PSC) to make offshore gas exploration more attractive while safeguarding national interests. The government is also diversifying energy import sources to reduce reliance on a single supplier.
Two floating LNG terminals are already operational at Moheshkhali, and the possibility of establishing additional terminals is under review. Preparatory work is also underway for a land-based LNG terminal in Matarbari, including land acquisition and consultant appointments.
Infrastructure Expansion Plans
The minister said that better utilization of the 601.5 km fuel pipeline network is planned, along with the introduction of a Single Point Mooring (SPM) system for efficient fuel handling.
A new crude oil refinery with a planned capacity of 5 million metric tons is also being considered for the Chattogram coastal industrial zone.
He added that these initiatives are expected to significantly strengthen national energy security and ensure long-term stability in fuel supply.
