ZCA Report
Bangladesh at Risk from Japan’s LNG Trade
An LNG tanker at a Japanese port. Photo: Reuters.
Bangladesh is becoming increasingly dependent on Japan’s liquefied natural gas (LNG) trade, exposing the country to long-term risks associated with the volatile global energy market, according to international research organisation Zero Carbon Analytics (ZCA).
In its latest report, ZCA said Japan has been purchasing LNG primarily from the United States and reselling it to Asian countries, including Bangladesh. Over the past five years, the volume of LNG resold by Japan has generated carbon emissions equivalent to those produced annually by 17 coal-fired power plants. The report was published in London on Tuesday.
According to ZCA, between 2020 and 2025, Japan resold nearly 16.5 billion kilograms of US LNG to nine Asian countries, including Bangladesh, India, Pakistan, China, South Korea, Taiwan, Thailand, Singapore, and Malaysia. Across the entire supply chain—from gas extraction and liquefaction in the United States to transportation, regasification, and use in power plants—the fuel generated an estimated 63.5 billion kilograms of carbon dioxide emissions.
The analysis comes at a time when Bangladesh is expanding energy cooperation with Japan and increasing its reliance on LNG imports to meet rising electricity demand. According to the report, Japan is now one of the world’s largest LNG traders. Since 2021, the country has been exporting more US LNG than it consumes domestically. Between 2021 and 2025, Japan resold 77 percent more LNG than its own domestic consumption.
Researchers warned that this trend could deepen Asia’s dependence on fossil fuels at a time when pressure is mounting to reduce emissions and increase investment in renewable energy.
Khondaker Golam Moazzem, Research Director at the Dhaka-based Centre for Policy Dialogue (CPD), said: “Japan has become a major driving force behind LNG expansion in Bangladesh through energy supply, investment in LNG infrastructure, and economic cooperation.”
He added: “Bangladesh’s energy security came under significant pressure during the recent Middle East crisis, prompting requests for financial support from development partners, including Japan. Under the Bangladesh-Japan Economic Partnership Agreement signed in February this year, Bangladesh agreed to import LNG from Japan duty-free. At the same time, Japanese companies are showing growing interest in investing in Bangladesh’s energy sector.”
However, he cautioned that such initiatives are likely to prioritise LNG infrastructure, potentially increasing Bangladesh’s dependence on LNG and debt burden.
The report comes amid rising LNG prices due to tensions in the Middle East and growing concerns over energy security across Asia.
Methane, the primary component of LNG, is a significantly more potent greenhouse gas than carbon dioxide in the short term. According to the analysis, nearly 30 percent of LNG-related emissions stem from methane leakage. In its 2026 Global Methane Tracker report, the International Energy Agency (IEA) stated that methane emissions from fossil fuels remain close to record levels. However, reducing methane emissions could quickly deliver positive outcomes for both climate action and energy security.
Yu Sun Chin, a regional researcher for Asia at ZCA, said: “Asia is now absorbing nearly one-third of Japan’s surplus LNG. The lifecycle emissions associated with LNG resales show that this poses a major risk for a region already highly vulnerable to extreme weather.”
“Rather than expanding gas as a transition fuel, shifting towards renewable energy represents a safer and more sustainable pathway for Asia,” he added.
According to Sam Reynolds, Chief LNG Analyst for Asia at the Institute for Energy Economics and Financial Analysis (IEEFA), “Japanese companies are seeking new overseas buyers as domestic demand declines. This strategy could lock developing countries into long-term dependence on expensive and volatile energy sources while delaying the transition to renewable energy.”
The report also noted that the expansion of LNG infrastructure across Asia could undermine efforts to limit global warming to 1.5 degrees Celsius, a threshold climate scientists consider critically important. For climate-vulnerable countries like Bangladesh, the research raises renewed questions about how to balance short-term energy security with long-term sustainable development.
