Dhaka, July 29, 2025:
Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) has revealed that the country incurs a loss of over Tk 3,000 crore annually due to gas wastage in distribution and transmission systems. These findings were shared at a seminar titled “Energy Security of the Country: Challenges and Way Forward; The Role of Media,” held at Petrocenter on Tuesday.
In the fiscal year 2023–24, an average of 6.28% gas was lost in distribution pipelines, amounting to Tk 3,790 crore in financial loss. Until March of FY 2024–25, the loss rose to 7.44%, costing Tk 3,286 crore. Additionally, 2% gas loss was recorded in the transmission lines. While 2% is deemed acceptable, losses beyond that threshold are considered avoidable and have significant financial implications.
Causes and Interventions
Petrobangla attributed these losses to:
• Old and deteriorated pipelines
• Leaks at gas station risers
• Pipeline damage from third-party development works
• A large number of illegal residential connections
• To combat these issues, the following initiatives are underway:
• Implementation of metering systems
• Target-based control of technical losses
• Intensified drives to eliminate illegal connections
• Expansion of prepaid meters for residential consumers
• Financial Losses from LNG Imports
The organization further disclosed that the import of liquefied natural gas (LNG), which began in FY 2018–19, has resulted in continued losses. That year, Petrobangla received a subsidy of Tk 2,500 crore. The figure has increased significantly over time, reaching Tk 8,900 crore in the last fiscal year. In total, Tk 36,712 crore in subsidies has been provided by the government.
In FY 2023–24, the cost of supplying each unit of gas was Tk 27.53, while the selling price was Tk 22.93, resulting in a loss of Tk 4.60 per unit.
Decline in Production, Need for Exploration
Presenting the keynote paper, Prof. Ijaz Hossain (former BUET professor) highlighted that the country’s gas production has fallen back to levels seen 15 years ago. He emphasized the urgent need for increased gas exploration and stronger measures to reduce gas theft and technical losses, which currently stand at nearly 10%.
Industrial Gas Supply Prioritized
Petrobangla Chairman Md. Reza Nur Rahman confirmed that industrial gas connections are being prioritized due to their higher payment capacity. Three priority lists are being developed, with the first including factories that can receive immediate connection. Site inspections are nearly complete.
He also announced that a land-based LNG terminal will be constructed at Matarbari, Maheshkhali, allowing surplus LNG to be stored when global prices are low. This project is expected to take around five years.
New Gas Added to National Grid
Director (PSC) Md. Shoeb reported that a draft Production Sharing Contract (PSC) for onshore gas exploration has been submitted to the Energy Division.
Director Md. Rafiqul Islam stated that 18 out of 50 planned wells have been completed under gas development projects, adding 78 million cubic feet of gas per day to the national grid. Work is ongoing on four additional wells.
Revenue and Outstanding Dues
According to Director (Finance) A.K.M. Mizanur Rahman, Petrobangla earned Tk 54,117 crore in revenue in the last fiscal year, but Tk 27,199 crore remains unpaid. The largest dues are from the power sector (Tk 16,523 crore), followed by urea fertilizer factories (Tk 964 crore). The organization confirmed that no foreign companies owe any dues.