This energy review examines the gas and power sectors in terms of major actors, current and potential output, generation, transmission and distribution problems and the emerging policy regime. The main challenge for Bangladesh is how to provide electricity to domestic industry and household and broaden access to natural gas. Consumers are willing to pay for electricity, but are contrained by supply. Bangladesh has undertaken reforms in production by providing favourable treatment for international oil and power producers. Reforms in the distribution of energy have not been as effective. It is argued that the iplementation of reforms has been slow because of stiff resistance from the bureaucracy, the officials of the concerned agencies and their trade unions. Gas is currently the only indigenous non-ernewable energy resource in the country that is produced and consumed in significant quantities. the reposr discusses alternative options for the use of this resource (power production or gas export). The report also underscores the importance of coming up with a regional perspective on the use of energy resources.