[🇧🇩] Energy Security of Bangladesh

[Saif]

Correlation between energy crunch and industrial production

Energy consumption has historically been a vital indicator of robust economic activities and improved living standards. But when this input turns irregular and insufficient, driving up its costs to an outrageous level, the manufacturing sector can hardly be sustainable. Bangladesh, according to sea

thefinancialexpress.com.bd

Correlation between energy crunch and industrial production

Published :
Dec 01, 2025 23:54
Updated :
Dec 02, 2025 01:32

Energy consumption has historically been a vital indicator of robust economic activities and improved living standards. But when this input turns irregular and insufficient, driving up its costs to an outrageous level, the manufacturing sector can hardly be sustainable. Bangladesh, according to seasoned business leaders and expert economists, is right now in such a crisis. Industries built a few decades ago were told by political leaders leading the country that the country was floating on natural gas, a comparatively cheap source of energy. But now the projection is that by 2030, the country will exhaust its gas reserves completely. At a parley titled, "Bangladesh Industrial Energy Efficiency Policy: A Draft for Sustainable Progress" participated by business leaders and economists, speakers made it amply clear that outrageous pricing of gas has compelled some industries to slash production and a few others turned completely non-viable. Production in the country's major sectors including textiles, steel and fertilisers has declined by 30-50 per cent.

This is depressing news. Gas price hiked, as claimed by the DCCI president, by 178 per cent in January 2023 has recently been subjected to yet another price escalation by 33 per cent. Intriguingly, small, cottage and some other industries in the SME sector saw the highest ever increase in gas price, with the prices surging to Tk 30 a cubic meter from Tk 10.78. Naturally, production in several industrial units has either stagnated or was forced to suspend. Once moribund, the textile industry here got a new lease of life on account of the flourishing readymade garment (RMG) industry. In fact, it turned out to be a backward linkage industry to the latter. There are several manufacturing units, other than textile, that need natural gas for operation and started thriving, courtesy of the RMG. Now if the vital input, gas that is, is in short supply, there is a negative chain reaction in the industrial sector.

The withdrawal of subsidy has made gas costly. But now the country's overwhelming dependence on imported liquefied natural gas is also a vulnerable factor for industrial slump. At a time when the international fossil fuels' market is down by 15 per cent, the domestic prices in Bangladesh have no reflection of this price fall. Crude oil spot price drops by 15 per cent globally and the projection is that gas price too could fall by 15 per cent over the next five years. This is likely to go in Bangladesh's favour but the problem here is that prices here hardly match the global level, particularly when the market value is down.

The Bretton Woods institutions' recipe for subsidy withdrawal in underdeveloped countries is not always suitable. Bangladesh has to swallow the bitter pills because it had hardly any better option when it was desperately running short of funds. The country's industrial base is not large enough and therefore cannot defy the recipes suggested by the International Monetary Fund (IMF) and the World Bank (WB). Where the country grossly failed is the exploration of natural gas---either onshore or offshore. It should have developed the Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) as a highly efficient entity to explore at least its onshore gas reserves, if not the offshore ones. The energy crunch now threatening to deal a grievous blow to its industries could be avoided.​

 

[Saif]

newagebd.net/post/country/284292/gas-mining-by-local-cos-falls-quickly

Gas mining by local cos falls quickly
Decline sharp over past 16 months, experts for more timely investments

Shakhawat Hossain 06 December, 2025, 00:21

The overall natural gas production by companies under the Bangladesh Oil, Gas and Mineral Corporation — or, Petrobangla — has fallen around 15 per cent over the past five years, with more than 8 per cent in the past 16 months alone because of lack of timely investment.

Experts said that the fall had accelerated because of lacklustre drilling efforts and investment in most part of the past one and half decades to find new wells by the local companies under the Petrobangla.

Gas exploration from a well takes several years after the discovery, according to experts.

Abortive attempts to attract international oil companies to drilling the potential off-shore blocks in the Bay of Bengal have also been attributed to discouragement in production of gas from the local sources.

On December 3, 2025, Petrobangla subsidiaries — the BAPEX, the Bangladesh Gas Fields Company Limited, and the Sylhet Gas Fields Limited — generated 708 million cubic feet gas per day.

The amount was 776.6 mmcfd on August, 8, 2024, when the current interim government assumed power, three days after the Awami League regime was ousted in a mass uprising on August 5, 2024, said Petrobangla officials.

On August 8, 2020, the local companies generated 833.4 mmcfd, they further said.

Since 2010, the local companies have received some Tk 8,000 crore for exploratory activities, said Petrobangla officials.

Of the amount, Tk 6,832 crore was allocated between 2020 and 2023 when the gas exploratory work on 50 wells was undertaken, they said.

But the exploratory work was inadequate as it was mostly linked to the maintenance of old wells, said Ijaz Hossain, a former dean of engineering at the Bangladesh University of Engineering and Technology.

Only 5 new wells were among the lot, he said.

The production of gas by international oil companies has, meanwhile, remained static over the past five years at around 1,100mmcfd on average.

The sharp decline in the production of domestic companies has been met up by the Petrobangla through the import of liquefied natural gas that has become the second biggest source of gas ahead of local companies.

The current Petrobangla collection stands at 2644.7mmcfd — local companies 708 mmcfd, IOCs 1045.1 mmcfd and LNG 891mmcfd — against the demand for around 4,000mmcfd hampering the production of power, fertiliser, and private manufacturing industries.

The gas exploration by the domestic companies has not been pursued with the seriousness it deserved, said Badrul Imam, an honorary professor of geology at Dhaka University,

Referring to the misuse of the gas development fund for importing LNG in 2023, experts highlighted the flawed policy of suppressing gas production by the local companies.

Experts said that the lack of seriousness had also been visible with the current government.

On December 1, the executive committee of the National Economic Council in a meeting approved a project titled ‘Drilling of Three Exploration Wells (Srikail Deep-1, Mobarakpur Deep-1 and Fenchuganj South-1)’ at a cost of Tk 1,136.25 crore, which is expected to be implemented by December 2027.

This is part of the Petrobangla plan to drill around 100 wells between 2025 and 2028 by contractors to be selected through open tenders.

On September 17, the ECNEC approved a project linked to the procurement of a high-capacity drilling rig for the BAPEX under a gas exploration project worth Tk 577 crore.

Petrobangla officials said that around half a dozen projects linked to increasing gas production had already been approved under the current interim government with more in the pipeline.

Refereeing to a calculation in the past November by the Petrobangla, BAPEX information and communication technology and planning head Mohammad Moinul Hossain said that 143mmcfd gas would be added to the national gas grid by the domestic companies at the completion of expletory works on 11 wells.

Badrul Imam said that more funding was needed for increasing gas production by local companies.

He said that energy policymakers were more focused on imports.

Available data show that the country spent an estimated Tk 40,752 crore on the LNG imports in the 2024-25 financial year, pushing up the overall tally to around Tk 2,00,000 crore since the financial year 2018-19.

Shamsul Alam, energy adviser of the Consumers Association of Bangladesh, said that the interim government had failed to bring about major changes to the energy sector structure built by the Awami League government.

On November 18, the advisory council committee on government purchase approved a proposal to import 49th cargo of LNG from the spot market in the current calendar year.

The country imported 30 cargoes of LNG in 2024.​

 

[Saif]

Energy efficiency is Bangladesh's invisible power plant

Every unit of energy saved carries more value than one produced, because imported fuel travels long distances, accumulates technical losses and costs the country twice over. A kilowatt hour conserved at the source prevents the need for two kilowatt-hours of costly generation later. The Internationa

thefinancialexpress.com.bd

Energy efficiency is Bangladesh's invisible power plant
Mohammad Iftekharul Islam

Published :
Dec 06, 2025 22:09
Updated :
Dec 06, 2025 22:09

A view of Payra Power Plant in Patuakhali, Bangladesh —Xinhua Photo

Every unit of energy saved carries more value than one produced, because imported fuel travels long distances, accumulates technical losses and costs the country twice over. A kilowatt hour conserved at the source prevents the need for two kilowatt-hours of costly generation later. The International Energy Agency calls efficiency the first fuel for good reason. Bangladesh is learning this truth as electricity tariffs rise repeatedly, global LNG prices fluctuate sharply and load shedding continues despite record installed capacity. The fastest, cheapest and cleanest power station is the one that never needs to be built.

BANGLADESH'S ENERGY PARADOX: Although the Bangladesh government has extended electricity access to almost every household and built numerous power plants, blackouts still happen. Generators are forced to burn costly diesel and factories shift work hours to catch up with power cuts. Despite having surplus capacity and fuel reserves reportedly above planning norms, many plants sit idle from shortages or repair delays, leaving homes and businesses in the dark. This imbalance costs a great deal. The government pays large sums to keep idle plants on standby, covers subsidies to hold prices down and spends heavily on fuel imports that rise and fall with global markets.

The Integrated Energy and Power Master Plan (IEPMP 2023) is the latest major national document for energy policy. It shows that the country is becoming increasingly dependent on liquid natural gas (LNG), whilst peak demand is expected to rise several times more by 2041-2050. Without a concrete plan, LNG and coal imports will keep rising, exposing the economy to exchange and price volatilities. Bangladesh has been able to add megawatts of capacity, but not enough efficiency, grid performance, or demand-side management to use that capacity well.

VALUE OF EFFICIENCY AND THE PRICE OF NEGLECT: Efficiency reduces emissions and strengthens energy security faster than any other option, and in Bangladesh its benefits multiply. Beyond economics, efficiency directly cuts carbon emissions and local air pollution, reducing the need for new coal or LNG plants that would lock in decades of emissions. Each avoided megawatt-hour is also a step towards Bangladesh's climate commitments under the Paris Agreement.

Each unit saved means less imported fuel, less grid strain, and fewer subsidies. An IEEFA analysis finds that a 1 per cent reduction in transmission and distribution losses alone would save 884 GWh without building anything new. Studies by development partners show that the country could reduce a large share of its energy demand by 2030 with proven steps. Savings in primary energy up to 14.3 per cent can be achieved through appliance standards, building codes, industrial upgrades and loss reductions.

By replacing old motors and boilers with efficient models, factories can recover wasted heat and improve power quality. Homes and offices can lower demand through implementation of appliance standards and building codes. The ADB's Industrial Energy Efficiency Finance Programme shows that such retrofitting can achieve 15-40 per cent savings in factories from textiles to cement, with simple payback periods of 2-4 years.

Because most of these actions pay for themselves within a few years, they are vital for competitiveness at a time when exporters already face rising costs and shrinking margins. One of the most feasible ways to stay competitive is to use less energy for each unit of output. Countries such as India and Vietnam treat efficiency as part of production itself, not as an afterthought, and that has made their industries stronger. Yet the opposite is equally true: ignoring efficiency increases fiscal stress, worsens emissions and weakens competitiveness.

The fiscal impact is clear: subsidies remain high as the government pays large sums to keep idle plants on standby. The environmental cost is just as heavy. Inefficient plants and grids burn more fossil fuel for the same output, worsening urban air quality and greenhouse gas emissions.

The effect extends to businesses too. Small and medium firms lose output during load shedding, whilst large exporters warn that unreliable power delays deliveries and raises costs. When companies hold back on importing new machinery because the energy outlook looks risky, they stay stuck with old equipment. That essentially means burning more fuel than necessary.

The waste carries a wider cost as well. Money spent to cover inefficiency cannot go into roads, skills, or new clean energy that could reduce import dependence over time. Efficiency is not separate from the clean energy transition. It is the entry point that makes the transition affordable.

WHAT OTHERS DID RIGHT (AND WHAT WE CAN ADAPT): Bangladesh does not need to start from zero. India introduced the Perform, Achieve and Trade scheme, which set clear targets for large energy users and allowed companies that beat their goals to trade savings with those that fell short. The first rounds delivered 8.67 million tonnes of verified savings at a relatively low cost. The Vietnamese government required large energy consumers to carry out mandatory energy audits every three years and supported pilot contracts with energy service companies. It also launched a national programme with measurable goals for energy savings by 2030.

Singapore focused on buildings. It strengthened codes for new buildings and then required the largest existing buildings to carry out mandatory improvements. Finance and certification were tied together through the Green Building Masterplan, which gave credibility and support to investors and owners. Germany experimented with competitive tendering, funding the cheapest verified kilowatt-hour saved rather than the most glamorous new power plants or energy related projects. All of these approaches are founded on three core principles: efficiency must be measured, it must be made attractive to investors, and it must be enforced to ensure lasting results.

A ROADMAP AND RESULTS FOR BANGLADESH: Progress so far has been held back less by technology than by institutions. Efficiency responsibilities sit across several ministries with weak coordination and enforcement, whilst utilities lack incentives to cut losses when subsidies cover shortfalls. Access to affordable finance for small and medium firms remains limited, slowing upgrades that would pay for themselves.

For Bangladesh to treat efficiency as the first fuel, as the IEA mentioned, efficiency must stand as a headline policy. IEPMP treats it as one action amongst many, but Bangladesh needs explicit targets for savings across industry, commerce, households and utilities. Annual reductions for large designated consumers, minimum standards for appliances, and clear loss reduction goals for distribution companies should form the core. Baselines and dashboards must make progress visible.

Energy audits should become routine, with large consumers publishing verified results and utilities filing loss audits with corrective plans. Licensing and access to concessional finance should depend on compliance. Finance must flow easily for efficiency. Financial institutions like Infrastructure Development Company Limited (IDCOL) and local banks can expand green credit lines that mix concessional capital with technical support. Risk guarantees and standard contracts can help Energy Service Companies (ESCOs), whilst tax credits or accelerated depreciation can reward firms that install certified high-efficiency equipment.

Competitive tenders can reward projects that deliver verified energy savings at the lowest cost, allowing the government to buy the cheapest kilowatt-hours saved rather than build new generation. A local version of Germany's STEP Up! scheme could invite bids for verified kilowatt hours saved, funding the lowest-cost projects first. Grid modernisation and demand management must move together. Advanced metering, feeder upgrades and data platforms can cut technical losses, whilst time-of-use tariffs and rooftop solar linked with storage can shape demand.

Export competitiveness also depends on efficiency. The RMG sector's green certification shows how lower energy intensity and clean energy adoption can help firms keep orders. Finally, pricing must reflect cost, but fairness requires protection. Cash transfers for vulnerable households and low-cost loans for retrofits can make the transition just.

If Bangladesh treats efficiency as a core energy source, it is possible to quickly achieve three results. Load shedding falls without new plants when demand drops through end-use savings and lower network losses.

Foreign exchange outflows also shrink. Efficiency in gas-fired captive power and better use of waste heat could cut LNG imports by 50.18 billion cubic feet and save about 460 million dollars a year. Those savings help the external balance.

Public spending falls as well. Using existing plants more effectively reduces the need for subsidies and lowers payments to idle capacity. In FY2022-23 alone, capacity charges were about $2.2 billion, and estimates for FY2023-24 placed the figure near $2.7 billion. Over 14 years, total capacity charges exceeded $8.5 billion. Cutting losses and shifting demand would also reduce the subsidy burden by roughly $1.2 billion per year under an IEEFA reform package.

Bangladesh faces a choice. It can continue to rely on costly and unstable fuel imports whilst paying for power plants that sit idle. Or it can make the system smarter and fairer by treating energy efficiency as the country's invisible power plant. That requires clear national targets, strong enforcement, easy access to finance and tariffs that reward saving energy. Results must be measured and published so progress is visible and the benefits are recognised. Each kilowatt hour not consumed is a success. Each garment made with less energy strengthens competitiveness. Each utility that cuts losses reduces the need for subsidies. Each household that saves power sees lower bills and a better quality of life.

The fastest relief for bills, blackouts and the balance of payments is already in our hands. It is time to switch on the power we do not have to build.

The writer is an economics graduate working as a Research Associate in South Asian Network on Economic Modelling (SANEM).​

 

[Saif]

Gas exploration still not on priority agenda

A DECLINE in gas production by 15 per cent in five years, with more than 8 per cent having happened in the past 16 months, is worrying. Experts say that the decline has accelerated because of lacklustre drilling efforts and an absence of investment for about a decade and a half even as the...

www.newagebd.net

Gas exploration still not on priority agenda

A DECLINE in gas production by 15 per cent in five years, with more than 8 per cent having happened in the past 16 months, is worrying. Experts say that the decline has accelerated because of lacklustre drilling efforts and an absence of investment for about a decade and a half even as the authorities struggle to supply gas to industries and households. Many industries, mainly export-oriented textile, ceramic, knitting and apparel, are also reported to be in a difficult situation so much so that production in most factories has almost halved because of the continued gas shortage in recent times. All this suggests that the government has hardly given any attention to issues of gas exploration by local companies. What is further worrying is that the government is more keen on meeting the shortage through import, as the Awami League government, which fell amidst a mass uprising in August 2024. Gas production on December 3 stood at 708 million cubic feet a day, while the production on August 8, 2024, when the interim government assumed office three days after the fall of the Awami League government, was 776.6mmcfd. Gas production on August 8, 2020, however, stood at 833.4mmcfd.

The management of gas production is neither a short-run nor even a medium-run affair. Gas extraction from a well takes several years after discovery. Experts and the media have for long talked about strengthening Bangladesh Petroleum Exploration and Production Company Limited, or Bapex, to drill wells for hydrocarbon exploration. The domestic wells that meet the demand now were discovered in the 1960s–1990s. The government had plans to drill 108 wells in 2016–2021, but the plans remained on paper. After the gas crisis surfaced in 2022, the government had plans to increase domestic gas production by digging 46 wells by 2025, but the plans have never taken off. Local companies have received Tk 80 billion for exploration since 2010, and Tk 68.32 billion of the amount was allocated in 2020–2023 for exploration in 50 wells. But the exploratory work was inadequate and was mostly related to the maintenance of old wells. The work, overall, included only five new wells. With production by international oil companies having been static, on an average, at 1,100mmcfd for five years, the government leaned towards liquefied natural gas imports from the spot market. Data show that the authorities spent an estimated Tk 407.52 billion on liquefied natural gas imports in the 2025 financial year, pushing up the overall amount to about Tk 2,000 billion since the 2019 financial year.

The government may tie some loose ends to improve supply in the short run, but it should take long-run measures, with increased efficiency and further investment, for a lasting solution to gas production problems.​

 

[Saif]

Pledges for increased use of renewable energy and Bangladesh reality

This year's COP30 failed to reach a consensus on finalising roadmaps and timeframe to phase out fossil fuel. However, UN member countries have been submitting their own Nationally Determined Contributions (NDC) targets for reducing Greenhouse Gas (GHG) emission. Bangladesh has submitted its NDC rep

thefinancialexpress.com.bd

Pledges for increased use of renewable energy and Bangladesh reality

Mushfiqur Rahman
Published :
Dec 10, 2025 23:07
Updated :
Dec 10, 2025 23:07

This year's COP30 failed to reach a consensus on finalising roadmaps and timeframe to phase out fossil fuel. However, UN member countries have been submitting their own Nationally Determined Contributions (NDC) targets for reducing Greenhouse Gas (GHG) emission. Bangladesh has submitted its NDC reports and voluntarily offered to reduce GHG emission and increase renewable energy use. As per the NDC targets Bangladesh pledged to increase its share for electricity generation from renewable sources and reduce its reliance on fossil fuel use. The Renewable Energy Policy, 2025, Bangladesh targets to meet 20 per cent electricity demand within 2030 and 30 per cent within 2040 from renewable energy sources. As per International Renewable Energy Agency report (2024), India meets 24 per cent electric energy demands from renewable energy sources, Pakistan 17.16 per cent, Sri Lanka 39.7 per cent respectively. Published reports suggest that India has installed (as on March 2025) a total renewable energy generation capacity to 220.10 GW. Despite the rise of renewable energy share in India, rise of clean source-based energy utilisation remains slow due to its lower capacity utilisation, restrictions in the electricity grid and the constraints for battery storage facilities. India's baseload electricity demand is largely met by coal fired power (up to 75 per cent of the country's energy mix). China, on the other hand, is expected to reach 1,200 gigawatts (GW) target by 2025 and has pledged to attain 1,000 GW of solar power by 2026. Fossil fuel-based electricity generation now contributes less than 50 per cent of China's total installed power generation capacity. Published reports further suggest that 'in the next and every subsequent five-year plan, China made strategic investments in all aspects of renewable technologies, from solar and wind capacity, green hydrogen, and geothermal projects to reach and investment in battery storage and its supply chains'.

Bangladesh is far behind the South Asian neighbours in terms of commercial use of renewable energy. However, before the COP30 a disappointing picture in terms of NDC report submissions from the UN member countries was reported. The analysis of submitted 64 NDC reports (from the respective member countries from within 295 UN member countries) suggests that if the targets in the reports are attained, global emission might decline only 17 per cent by 2035 (compared to 2019 level). But the major GHG emitting countries have not submitted updated NDC reports. The United States have withdrawn from COP process and did not send its official representatives to COP30 UN Climate Conference in Brazil. The previous COP conferences (global climate change summits) had set net-zero targets and roadmaps for maintaining atmospheric temperature levels at 1.5 degree celsius. From that said roadmap, it is clear that a 60 per cent reduction of GHG emission within 2025 will be necessary to achieve net-zero targets. However, NDC targets will remain valid at the centre of global climate crisis. Surely, there is no alternative to securing sufficient investments for keeping the global atmospheric temperature level within 1.5°c alive.

Sustainable and Renewable Energy Development Authority (SREDA) of Bangladesh suggests only 5.38 per cent (or 1689.71 MW) renewable energy share for electricity generation mix has been installed in Bangladesh. Among the renewable energy sources, solar energy's share remains dominant (on-grid 1019.45 MW and off-grid 377.17 MW). Installed capacity of on-grid hydro electric generation capacity is 230 MW and wind Energy (on-grid) 62MW only. On the other hand, coal accounts for 22.97 per cent (7,179 MW); natural gas (including imported LNG) 39.45 per cent (12,384 MW); furnace oil 18.75 per cent (5,885 MW); high sulfur diesel 0.92 per cent (290 MW); imported electricity (1,160 MW) and captive power generation 8.92 per cent (2800 MW).

Bangladesh has limited scope to diversify electricity generation from various clean and renewable sources. Solar energy has been the major contributor in renewable energy-based electricity generation. On the other hand, utility scale electricity generation in a sustainable way demands significant land (one megawatt electricity generation demands approximately three acres of land with the present technology). Some experts argue that the land constraints may be offset by allocating one per cent of agriculture land for solar power generation in Bangladesh. They further argue that one per cent of the country's land allocated for solar power generation may help generate approximately 50,000 MW electric power. The shortfall of agriculture (due to allocation of land for solar power generation facilities development) may be substituted by imports. Bangladesh fails to reduce a considerable amount of loss and damage of crops due to lack of poor conservation and adequate storage facilities. Also, Bangladesh has been losing annually approximately one per cent of agricultural land because of unplanned urbanisation and various development activities. Careful monitoring and advance management of land and agricultural crop conservation may improve better use of land in the country. At the same time, expansion of solar and renewable energy generation may contribute to improved environment and climate change induced crisis in the country.

Government's initiative to generate additional 2,000-3,000 MW solar power using rooftop spaces of the government buildings, educational institutes and hospitals (the interim government has taken initiatives to generate 1,454 MW electricity using roof top spaces within February 2026) have been progressing slow due to lack of investors' confidence. A recent survey report carried out by the non-government think-tank CPD informed that the relevant agencies of the government invited tender for installation of 55 solar power plants in the country. But the response was very poor (response received only for 22 sites for installation of solar power plants) as the potential investors were hesitant due to unresolved risks, rigid price offer, weaker incentives. President of the Independent Power Producer's Association, David Hasnat was critical about the rate of power purchases offer for the tendered sites putting forward his own arguments. He suggested to consult with the investors prior to declaring government policies for renewable energy development in the country.

Mushfiqur Rahman is a mining engineer. He writes on energy and environment issues.​

 

[Saif]

Govt pays $360.99m for 11 cargos of LNG in Nov

The government has paid $360.99 million for 11 cargos of Liquefied Natural Gas (LNG) totaling around 3.52 crore MMBTu in November to ensure energy security along with meeting the growing demand of Bangladesh...

www.newagebd.net

Govt pays $360.99m for 11 cargos of LNG in Nov
Bangladesh Sangbad Sangstha . Dhaka 14 December, 2025, 23:28

The government has paid $360.99 million for 11 cargos of Liquefied Natural Gas (LNG) totaling around 3.52 crore MMBTu in November to ensure energy security along with meeting the growing demand of Bangladesh.

‘We’re importing LNG regularly under long term, short term agreement as well as also spot markets to meet growing energy demand in the country,’ Petrobangla director AKM Mizanur Rahman told BSS here on Sunday.

He said in October Bangladesh received nine cargos of LNG totaling around 2.88 crore MMBTu under the long term and short term agreement along with the spot markets.

The government also procured 10 cargos of LNG amounting around 3.20 crore MMBTu under the long term and short term agreement along with spot markets, Rahman said.

He said that on an average 32 lakh MMBTu (Million British Thermal units) LNG was in each cargo.

According to Petrobangla, QatarEnergy received $115.97 million for four cargos of LNG, while Oman’s OQ Trading (OQT) got $55.28 million for two cargos of LNG under long term deal.

It said the Oman based OQT received $75.21 million for two liquefied natural gas under short term agreement, while the government procured three cargos with $114.53 million from spot markets.

The information, however, said petroChina International received $38.08 million for one cargo, TotalEnergies Gas and Power got $76.45 million for two cargos under the spot markets in November.

According to purchase committee, the advisers’ council committee on government purchase approved separate proposals for importing LNG to meet gas demand in the country earlier.

Earlier, in the purchase committee meeting, the finance adviser said the committee members are focusing on enhancing the supply side of LNG side by side reducing pressure on the government.

He informed that the government was purchasing LNG at a comparatively reasonable price from international market.​

 

[Saif]

Bangladesh to boost LNG imports on lower global prices

Bangladesh is preparing to ramp up its liquefied natural gas (LNG) imports as global spot prices soften and local gas output continues to fall behind the domestic demand.

www.thedailystar.net

Bangladesh to boost LNG imports on lower global prices

Falling spot prices and weak demand in Asia prompt Dhaka to look beyond its initial import plan for this year

Bangladesh is preparing to ramp up its liquefied natural gas (LNG) imports as global spot prices soften and local gas output continues to fall behind the domestic demand.

For the current fiscal year 2025-26, the government initially planned to import 115 cargoes of LNG through a mix of long-term contracts and spot purchases. That is already higher than the 94 cargoes bought in the previous year.

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Now, the authorities are considering importing even more as international prices have remained subdued amid weak demand from major buyers such as China and Japan.

"LNG prices reduced significantly. So, I am going to suggest the energy ministry to import more," said Finance Adviser Salehuddin Ahmed.

"I hope LNG imports this year will be higher compared to the initial plan," he told The Daily Star.

Ahmed said money is not a problem here, though physical capacity limits how much LNG the country can bring in at short notice.

Of the planned 115 LNG cargoes in FY26, each consignment would carry 33.60 lakh mmBtu of gas, according to Rupantarita Prakritik Gas Company Limited, the state-owned firm responsible for LNG conversion and supply.

On Monday, the government approved the purchase of one spot cargo at $9.99 per mmBtu.

In 2022, after the Russia-Ukraine war broke out, LNG averaged $18.43 per mmBtu. That dropped to $12.84 in 2024. The spot rate stood at $13.52 per mmBtu in June this year before easing further to $11.02 in November.

World Bank commodity price data also point to a gradual downward trend, while international energy analysts say LNG prices may decline further as supply remains ample.

According to international media reports, North Asian spot LNG prices have hovered around $9 per mmBtu, with the region's largest buyers staying largely out of the market for the coming months.

Chinese importers are holding strong inventories and are not seeking additional cargoes. Demand in Japan also remains weak, while South Korea has shown only limited spot buying interest despite being the world's third-largest LNG buyer.

Bangladesh sources LNG through two channels, long-term supply agreements and the spot market.

Amid declining domestic gas extraction, the government began importing LNG in 2018 to meet the domestic fuel demand.

Gas demand is projected to reach 6,240 million cubic feet per day (mmcfd) by 2030, according to the Integrated Energy and Power Master Plan 2023, which maps out the energy sector through to 2050.

By the end of 2023, domestic gas production stood at about 2.08 billion cubic feet per day from all fields, including those operated by international oil companies. That is lower than the 2012 average of around 2.20 billion cubic feet per day, according to state-run Petrobangla.

Under existing long-term agreements, the government is set to buy 40 LNG cargoes from Qatar and 16 from Oman in FY26. In 2026, supplies are due to rise further, with an additional 12 cargoes from Qatar and four from Oman.

A separate deal with US-based Excelerate Energy will see 14 cargoes supplied each year, beginning from January 2026. Besides, the government will purchase 33 cargoes from the spot market during the current fiscal year.

In the first five months of FY26 up to November, Bangladesh bought a total of 50 LNG cargoes. Of these, 29 arrived under long-term contracts, with the rest sourced from the spot market.

Preferring anonymity, an official of Rupantarita Prakritik Gas Company said LNG under long-term contracts is currently being bought at around $9.5 per mmBtu.

Despite the price drop, imports cannot be expanded aggressively, according to the official.

Because Bangladesh has only two floating storage and regasification units, operated by Excelerate Energy and Summit LNG Terminal Company. Together, the two terminals have a regasification capacity of 1,100 million cubic feet per day.

At present, two land-based LNG terminals are being established in Cox's Bazar, with a combined daily regasification capacity of 2,000 million cubic feet. However, both projects are still at an early stage.​

 

[Saif]

Energy efficiency saved $3.3b in FY24

Bangladesh saved an estimated $3.3 billion in energy costs in a single year by using electricity and fuel more efficiently across homes, factories and the power system, according to a report.

www.thedailystar.net

Energy efficiency saved $3.3b in FY24

Households and industries adopting LED lighting, efficient furnaces, and waste-heat recovery contributed to the amount.

Bangladesh saved an estimated $3.3 billion in energy costs in a single year by using electricity and fuel more efficiently across homes, factories and the power system, according to a report.

Besides, the savings reflect reduced fossil fuel consumption and avoided energy imports equivalent to 7 million tonnes of oil in fiscal year 2023-24, said the report published by the Institute for Energy Economics and Financial Analysis (IEEFA) yesterday.

In that period, the country faced higher global fuel prices, spiked rates for liquefied natural gas (LNG) deliveries and a severe dollar crisis.

The report said the savings were achieved through efficiency improvements across major consuming sectors, allowing the economy to deliver the same level of output while using less fuel.

In the report, IEEFA, a United States-based nonprofit organisation that promotes the transition to cleaner energy, said that the country's effort to improve energy efficiency by adopting a national master plan in 2016 is now paying off.

The Energy Efficiency and Conservation Master Plan set a target to cut energy intensity by 15 percent by 2021 and 20 percent by 2030.

From fiscal year 2014-15 to 2023-24, energy efficiency rose by 13.64 percent, according to the report, titled "Bangladesh's Energy Efficiency Goals Within Reach".

Although the progress remained limited until FY2020-21, energy efficiency gained momentum thereafter as global fuel volatility and domestic supply disruptions made it a priority, according to the report.

"The regulatory framework and awareness created a favourable ecosystem to enhance energy efficiency amid supply disruptions and rising tariffs, with further gains possible," the report mentioned.

"Bangladesh's efficiency gains have put it on track to meet its targets under the masterplan and its updated climate commitments, potentially a year ahead of schedule," it added.

According to the report, widespread adoption of energy-efficient appliances in households, particularly LED lighting, fans and air conditioners, helped reduce electricity demand. This eventually reduced the need for fuel-based power generation.

Industry, the country's largest energy consumer, also contributed through improved boilers, reduced leakages, waste heat recovery from captive generators and adoption of technologies such as vertical roller mills and efficient furnaces, said the report.

"Yet, the industry still offers significant untapped energy-efficiency opportunities such as using more efficient motors, a gradual shift towards electric boilers from gas boilers, and upgrades in captive power machineries," it added.

The report mentioned a previous IEEFA study, saying almost half of the country's captive power generators do not operate efficient generators and fail to utilise waste heat in industrial processes, which could save Bangladesh up to 50.18 billion cubic feet of LNG imports a year.

The report recommended setting minimum energy performance standards and labelling for household appliances to guide consumers towards the most efficient options.

It also urged enforcement of the national building code, which promotes passive design and energy-efficiency features in new buildings to reduce cooling demand.

Additional savings came from the commercial sector and reductions in transmission and distribution losses across the power system.

While the commercial sector uses less energy than households or industry, its reliance on air conditioning makes efficiency gains critical as rising temperatures are expected to increase cooling demand.

The report noted that stronger enforcement of appliance standards and labelling is needed to secure real savings.

It also warned that recent rises in import duties could undermine efficiency gains by making efficient appliances more expensive.

Customs duties on key components of LED lights were raised sharply in FY2025-26, potentially pushing price-sensitive consumers towards cheaper, lower-quality products.

Similarly, higher minimum import duties on inverter-based compressors for energy-efficient air conditioners and refrigerators could also slow adoption of efficient cooling technologies, it said.

IEEFA clarified that the $3.3 billion figure represents avoided fuel import costs rather than direct budgetary savings and does not appear as a line item in government accounts.

The report concluded that without stronger enforcement of efficiency standards and faster modernisation of industry and buildings, the country risks locking itself into higher fuel costs despite recent gains.

"For Bangladesh, energy efficiency is a strategic necessity to curb unchecked energy consumption and strengthen the resilience of its energy system. Achieving these gains will require a coordinated effort among regulatory authorities, industries, financial institutions, and technology providers," it said.​

 

[Saif]

Bangladesh's second oil refinery in sight: Project ready with Tk 355b domestic financing

Bangladesh's second oil refinery is now in sight as a project with an estimated cost Tk 355 billion in domestic financing awaits ECNEC seal at its next meeting, officials say. With this decisive initiative by the interim government a prolonged wait for nearly 17 years, after the feasibilit

thefinancialexpress.com.bd

Bangladesh's second oil refinery in sight: Project ready with Tk 355b domestic financing

JAHIDUL ISLAM
Published :
Dec 19, 2025 07:18
Updated :
Dec 19, 2025 07:20

Bangladesh's second oil refinery is now in sight as a project with an estimated cost Tk 355 billion in domestic financing awaits ECNEC seal at its next meeting, officials say.

With this decisive initiative by the interim government a prolonged wait for nearly 17 years, after the feasibility study launched in 2008, is going to be over.

The project to set up the second refinery unit of Eastern Refinery Limited (ERL) is set to be placed before the Executive Committee of the National Economic Council (ECNEC) for approval.

The new refinery, with an annual crude oil-processing capacity of 3.0 million tonnes, is in the agenda for the ECNEC meeting to be held next Tuesday, sources at the Ministry of Planning have confirmed.

An official of the Energy and Mineral Resources Division (EMRD) says the country's only existing refinery, established way back in 1968, has a capacity of 1.5 million tonnes-meeting just about 20 per cent of the current annual demand.

Once completed, the new unit would raise the combined refining capacity to 4.5 million tonnes, covering about 42 per cent of the projected annual demand for 10.79 million tonnes by 2030 and thereby substantially cutting import-dependence.

The proposed unit aims to strengthen the country's energy security by producing more environment-friendly fuels and reducing dependence on imported refined petroleum products.

EMRD officials say the plant will produce Euro-5-quality fuels, including octane and diesel, with sulfur content below 10 PPM, adhering to global environmental standards and promoting cleaner air for future generations.

"Implementing the project is also expected to save much-needed foreign exchange by cutting imports of refined petroleum," says one official.

"Additionally, the plant will help boost Bangladesh Petroleum Corporation's (BPC) income by processing various value-added byproducts alongside the production of liquid fuels from crude oil," the project document reads.

The EMRD Secretary, Mohammad Saiful Islam, says the basic design has been completed using Arabian Light Crude (ALC) and Murban crude as feedstock, with arrangements to refine crude from other sources, including Russia, Norway, and Nigeria.

"The second unit will be capable of processing Russian Urals crude or Nigeria's Brass River crude by separately boiling the fuels before refining," he told The Financial Express.

Following the feasibility study, the government first formulated a Tk 130-billion project in 2010, seeking funding from the Islamic Development Bank (IsDB).

The development project proposal or DPP was redesigned in 2023 with an estimated cost of Tk 237.36 billion to search foreign aid.

However, the proposal was later withdrawn to implement the project with funding from the controversial S Alam industrial group, which fell out of government's favour after the previous administration's collapse.

Recently, the EMRD resubmitted the proposal to the Planning Commission with a revised estimate of Tk 429.74 billion funded entirely from domestic sources.

The Project Evaluation Committee (PEC) meeting held last November recommended reducing the project's component-wise costs. Following PEC's suggestions, the EMRD resubmitted the project with a cut-down cost of Tk 354.65 billion, with Tk 212.78 billion as government loans and Tk 141.87 billion from the implementing agency's own sources, resulting in a cost saving of Tk 75.09 billion.

"Upon completion, the project will enable ERL to process 3.0 million metric tonnes of crude oils annually and produce cleaner petroleum products, enhancing the population's access to clean energy and modern fuels," it is stated in the proposal.

The refinery is expected to generate around 60,000 metric tonnes of LPG, 0.6 million tonnes of gasoline, 0.5 million tonnes of jet fuel, 1.1 million tonnes of diesel, and 0.15 million tonnes of bitumen, significantly reducing the country's reliance on imports of these refined petroleum products, it adds.​

 

[Saif]

Phulbari coal, power crisis, and a dangerous revisionism

Regarding the Phulbari Open-Pit Coal Mining Project, the chief adviser's press secretary recently made a Facebook post suggesting that Bangladesh is facing a severe power crisis because coal at Phulbari was not extracted.

www.thedailystar.net

Phulbari coal, power crisis, and a dangerous revisionism

Regarding the Phulbari Open-Pit Coal Mining Project, the chief adviser's press secretary recently made a Facebook post suggesting that Bangladesh is facing a severe power crisis because coal at Phulbari was not extracted. He went further, implying that those who resisted the project are responsible for today's dependence on India and the resulting energy insecurity. When a press secretary speaks on a matter of such national importance, it is natural to expect the chief adviser to clarify his stance if the views expressed by his press secretary do not coincide with his. The reason for that is, the press secretary's post is not only misleading but also factually incorrect, historically distorted, and deeply unjust to a movement that remains one of the proudest examples of public resistance in Bangladesh's history.

The claim that Bangladesh would not have faced a power crisis had Phulbari coal been extracted is simply untrue. The proposed 30-year project by British company Asia Energy was based on open-pit mining, which would have required excavating vast areas of Dinajpur, destroying three-crop agricultural land across six upazilas in one of the country's most important food-producing regions. To reach the coal, underground water aquifers would have been permanently drained. Hundreds of thousands of people would have been forced from their homes, turning them into environmental refugees, many with nowhere to go but already overstretched cities like Dhaka. The environmental damage would not have been contained within Phulbari and its adjacent region. Given Bangladesh's dense network of rivers and wetlands, contamination would have spread far beyond the mining site, creating a cascading ecological disaster.

And in return for all this destruction, Bangladesh was offered only a six percent royalty. Eighty percent of the coal was earmarked for export. Even more absurdly, the plan included a railway line from Dinajpur to the project site to facilitate that export, with the cost to be borne by Bangladesh. In other words, the country would have lost land, water, food security, and livelihoods along with its coal resources, while paying to export its own coal abroad to ensure huge profit for the company. This was not development; it was an absurd project of a company to make super profit at the cost of unprecedented environmental destruction for the country, along with its loss of agricultural land and human catastrophe.

That is why people resisted. On August 26, 2006, more than a hundred thousand people gathered in Phulbari to protest the project. The then Bangladesh Rifles opened fire on the crowd. Three people were killed. Many more were injured. What followed was a mass uprising and protest across the country, which forced the then-government to retreat from signing the project with Asia Energy. Instead, the government signed the Phulbari Agreement with local people and the National Committee to Protect Oil, Gas, Mineral Resources, Port and Power as their representative just four days later, on August 30. Among local resistance movements in Bangladesh, Phulbari stands out not only for its scale but also for its global significance. It remains a rare example of a grassroots movement successfully stopping a powerful multinational project. To now blame that resistance for today's power crisis is to patronise that destructive project and to erase people's sacrifice, suffering, and democratic courage to uphold national interest.

Bangladesh's current energy crisis and import dependence did not emerge because coal was left underground in Phulbari. It emerged because of deliberate wrong policy choices. Over the past decade, the state pushed ahead with coal-based power plants such as Rampal, Payra, Matarbari, and Banshkhali despite sustained warnings that Bangladesh cannot afford to take the coal path to meet demand for power generation. Instead, the focus should be on investments in renewable energy and building national capability for domestic gas exploration. The past government did not listen; on the contrary, it adopted an expensive, environmentally risky, import-dependent energy model, increasing reliance on LNG (liquified natural gas) and imported coal under the Power System Master Plan (PSMP). When global prices rose, the consequences were inevitable, and ordinary people are now paying the cost. Environmental problems are also accumulating. Trying to rationalise another destructive coal project to supply coal to these problematic power plants will only deepen the crisis and disaster.

What makes the FB post even more alarming is that it tries to rationalise a problematic corporate operation. Asia Energy, now operating as GCM Resources, does not hold a mining licence in Bangladesh. The company's Phulbari project was effectively cancelled after the mass uprising of 2006. Since then, the licence has never been renewed. Yet, year after year, the company has continued to trade on the London stock exchange market by presenting Bangladesh's coal resources as its asset (GCM Resources PLC filings), despite having no legal right to mine them. Successive governments have acknowledged this reality on multiple occasions, but no serious attempt has been made to stop the illegal use of Bangladesh's natural resources in foreign financial markets.

It is imperative to investigate the network of beneficiaries of this illegal share market business. The reason is that, even without any licence, Asia Energy continues to enter into agreements with foreign investors, including Chinese companies, projecting Phulbari as a future mine. No visible action has been taken by the present government to challenge or halt these activities. These activities are not harmless technical lapses; they are a continuing breach. The timing of the press secretary's statement is also significant as it was posted only one and a half weeks before the company's annual general meeting held on December 17. The FB post written in English is likely to convince hesitant shareholders that Bangladesh's government may revive the Phulbari project. This is how speculative share prices are inflated—through political signalling and lobbying. That's why the government must officially clarify its position immediately.

Besides, it is particularly disturbing to hear pro-coal lobbyist arguments coming from an official of the government, whose chief speaks globally of "Three Zeros"—zero carbon emissions, zero unemployment, and zero poverty. Supporting coal expansion does the opposite. It worsens environmental risk, displaces communities, and locks a country into an unsustainable economic path.

The government's responsibility now is clear. It must respect public resistance against a disastrous project, and not rewrite history to please corporate interests. It must fully uphold the Phulbari Agreement, stop Asia Energy's illegal activities in foreign markets, withdraw the false and harassing cases against Phulbari organisers, and commit to energy choices that are environmentally sound, economically rational, and rooted in public interest. Phulbari is not just about coal. It is about whether truth still matters in policymaking, and whether people's interest and their struggles still count in the future of this country.

Anu Muhammad is a former professor of economics at Jahangirnagar University.​

 

[Saif]

Bangladesh's energy security faces significant challenges, primarily its heavy reliance on imported fossil fuels (especially LNG and oil) due to depleting domestic gas reserves, leading to price volatility, fiscal strain, and vulnerability to global markets, despite recent massive capacity additions. While improvements have been seen in energy availability, affordability and sustainability remain concerns, necessitating greater focus on domestic resource exploration (gas), renewables, grid efficiency, and stronger governance for long-term stability.

Key Challenges:​

• Depleting Domestic Gas: Natural gas, the backbone of power generation, is declining, forcing a costly shift to LNG imports.​
• High Import Dependency: Over 50% of fuel is imported, straining foreign exchange reserves and exposing the nation to global price shocks.​
• Affordability & Fiscal Burden: Soaring import costs create large subsidies, impacting affordability for consumers and government finances.​
• Infrastructure Gaps: Outdated infrastructure and high transmission/distribution losses reduce efficiency.​
• Slow Renewable Integration: Renewables still form a small part of the energy mix despite policy goals.​

Current Strategies & Progress:​

• Capacity Expansion: Significant investment in power generation capacity (around 28,000 MW).​
• LNG Imports: Expanding LNG imports to bridge the gas gap.​
• Policy Frameworks: Implementing plans like the Power Sector Master Plan (PSMP) to address energy security.​
• Renewable Targets: Commitments to increase renewable energy (solar, hydro) as part of national goals.​
• Gas Exploration: Renewed focus on drilling and offshore exploration.​

Key Concerns & Recommendations:​

• Diversification: Reduce fossil fuel reliance by boosting renewables and exploring domestic coal/gas.​
• Efficiency: Improve grid infrastructure and reduce system losses.​
• Governance: Enhance regulation and implementation of energy policies for better results.​
• Sustainable Financing: Secure cost-effective financing for energy projects, like the World Bank-backed LNG facility.​

In essence, Bangladesh is at a critical juncture, balancing rapid energy demand growth with volatile global markets, needing strategic shifts towards local resources and efficiency for true long-term energy security.​

 

[Bilal9]

Nat'l grid to get Rooppur nuclear electricity soon​

Russian envoy says first unit ready for power supply early next year​

FE REPORT

Published :

Dec 22, 2025 18:22
Updated :

Dec 22, 2025 18:22

Bangladesh could begin receiving electricity from its maiden nuclear power plant early next year, says Russia's ambassador, setting a milestone in one of the country's most ambitious infrastructure projects.

The upcoming commencement of nuclear power feeding into the national grid also manifests the deepening of Moscow's longstanding energy and economic ties with Bangladesh.

Speaking at a press briefing Monday, Alexander Khozin, the Russian Ambassador in Dhaka, said preparations were under way to deliver the first megawatts of electricity from the Russian-built Rooppur Nuclear Power Plant into Bangladesh's national grid.

"This will be an important milestone in the implementation of the project and will confirm its readiness for full-scale operation," Khozin said. "We are making all necessary efforts and systematic progress towards commissioning of the facility."

According to the envoy, work is currently focused on Unit No 1 of the Rooppur plant, which he says has reached the final stage of readiness.

The 2400MW Rooppur project, Bangladesh's first nuclear power facility, has long been seen as central to the country's efforts to diversify its energy mix and reduce pressure on gas-fired power generation amid rising demand from a fast-growing economy.

Khozin also addresses recent changes to the project's financing arrangements, confirming that Bangladesh and Russia agreed to reschedule the repayment timeline of the main loan. Under the amended protocol to the Intergovernmental Credit Agreement, the start of debt repayment has been deferred by 18 months.

"The first installment of the loan repayment is now scheduled for September 15, 2028," he said, adding that the adjustment reflected the extension of the overall credit agreement.

Beyond nuclear energy, the ambassador highlights gas production as another key pillar of bilateral cooperation. Since 2012, Russia's Gazprom International has designed and drilled around 20 gas wells in Bangladesh, including seven on the Bhola island, where significant gas reserves have been discovered.

Russia is also in talks to supply liquefied natural gas (LNG) and crude oil to Bangladesh on a long-term basis, the envoy said, as the country grapples with persistent energy shortages affecting both industrial growth and household consumption.

In addition, Russian companies working in renewable energy have expressed interest in investing in Bangladesh and establishing joint ventures, Mr Khozin told reporters, citing solar technologies as one area of potential collaboration.

Trade relations between the two countries, the ambassador notes, have remained resilient despite global economic disruptions. Bangladesh is Russia's second-largest trading partner in South Asia, with bilateral trade exceeding $2.0 billion annually over the past three years.

Russia primarily exports machinery, agricultural products and fertilisers to Bangladesh, while importing readymade garments and textile goods. Mr Khozin said Moscow hoped trade figures for 2025 would also be "significant", pending official statistics.

Food security has been another area of sustained cooperation. He mentions that Russia has exported 2.0 million tonnes of wheat to Bangladesh in 2025 and doubled supplies of fertilisers and mustard seeds compared with previous years. Nearly 400,000 tonnes of potash fertiliser were delivered this year alone, while exports of Russian veterinary vaccines rose by 25 per cent.

The ambassador also urges greater emphasis on business-to-business engagement, noting that growing Russian interest in supplying petrochemicals, steel, rolled metal, and ICT products and services. He encourages Bangladeshi companies to explore opportunities on the Russian market.

On the issue of labour migration, Mr Khozin said demand for skilled Bangladeshi workers was increasing in Russia, particularly in construction, agriculture and shipbuilding. In 2024, nearly 2,800 work permits were granted to Bangladeshi nationals, compared with just 115 the previous year. The first group of Bangladeshi workers arrived in Russia's Far East in 2023.

Turning to the red-hot issue of Ukraine war, the diplomat reiterates Moscow's long-stated position that it is open to a negotiated settlement, provided the "root causes" of the conflict are addressed. These, he says, include Ukraine's neutrality, the protection of Russian-speaking populations, and the cessation of Nato expansion.

He mentions that Russia is engaged in talks with the US leadership aimed at developing a long-term political solution and prepared to consider "credible proposals" leading to legally-binding agreements.

Cultural ties were also highlighted at the briefing. Alexandra Khlevnoy, director of the Russian House in Dhaka, said 2025 had seen numerous events marking Russian and Bangladeshi national holidays as well as the 80th anniversary of the end of the Second World War.

She notes a growing interest among Bangladeshi students in pursuing higher education in Russia, underlining people-to-people links alongside expanding strategic cooperation.

 

[Saif]

Govt approves drilling of 5 gas wells in Bhola

The government on Tuesday approved a proposal to dig five gas wells in Bhola at an estimated cost of Tk 9.07 billion to boost domestic gas production, reduce reliance on imported fuel and strengthen national energy security. It also endorsed several large-scale power distribution projects aimed at

thefinancialexpress.com.bd

Govt approves drilling of 5 gas wells in Bhola

UNB
Published :
Dec 23, 2025 21:11
Updated :
Dec 23, 2025 21:20

The government on Tuesday approved a proposal to dig five gas wells in Bhola at an estimated cost of Tk 9.07 billion to boost domestic gas production, reduce reliance on imported fuel and strengthen national energy security.

It also endorsed several large-scale power distribution projects aimed at modernising and expanding electricity infrastructure in the Dhaka and Mymensingh divisions.

The approvals came at a meeting of the Advisers Council Committee on Government Purchase at the Cabinet Division Conference Room of the Bangladesh Secretariat with Finance Adviser Dr Salehuddin Ahmed in the chair.

The committee approved the proposal from the Energy and Mineral Resources Division to drill five new gas wells in Bhola.

These include Shahbazpur-5, Shahbazpur-7, Bhola North-3 and Bhola North-4 and Shahbazpur North East-1.

The wells will be drilled through an international tender process using a one-stage, two-envelope procurement method on a turn-key basis.

Following technical and financial evaluation, Sinopec International Petroleum Service Corporation of China was recommended as the responsive bidder.

It is also expected to support industrial growth and ensure a more stable gas supply for power generation and other economic activities.

In the same meeting, the committee reviewed and approved four major power distribution procurement proposals under a special revised project titled “Modernisation and Capacity Enhancement of BPDB Power Distribution System (Dhaka–Mymensingh Division).”

The project include construction and augmentation of 12 air-insulated 33/11 kV substations on a turn-key basis, six substations at a cost of Tk 1.30 billion, another six substations costing Tk 1.14 billion.

Two other approved proposals are construction and augmentation of 14 gas-insulated 33/11 kV substations, seven substations at an estimated cost of Tk 2.21 billion, seven more substations costing Tk 2.08 billion.

The committee noted that the power distribution projects would help meet rising electricity demand, reduce system losses, improve grid reliability and ensure a better quality of power supply across the Dhaka–Mymensingh division.​

 

[Saif]

A smarter solar strategy essential for Bangladesh’s clean energy transition

In recent years, Bangladesh has made notable progress in renewable energy production.

www.thedailystar.net

A smarter solar strategy essential for Bangladesh’s clean energy transition

'While rooftop solar continues to grow, Bangladesh must explore more effective alternatives to increase the share of renewables in its overall energy mix.' FILE PHOTO: REUTERS

In recent years, Bangladesh has made notable progress in renewable energy production. The Sustainable and Renewable Energy Development Authority (SREDA) estimates that five percent of the country's total generation capacity now comes from renewables. Solar energy is the primary contributor, accounting for 82 percent of renewable generation. Rooftop solar is steadily expanding, with 4,267 net-metered systems installed nationwide to date. Large-scale solar parks are also playing an increasingly important role.

Despite these advances, Bangladesh's solar potential remains largely untapped. Experts estimate this potential at 50,174 MW—sufficient to meet around 80 percent of the country's projected energy demand of 60,000 MW by 2041. The urgency to harness this potential has been heightened by the recent energy crisis. Responding to these challenges, the interim government announced ambitious targets in its Renewable Energy Policy of June 2025, aiming to generate 20 percent of energy from renewables by 2030 and 30 percent by 2040.

While rooftop solar continues to grow, Bangladesh must explore more effective alternatives to increase the share of renewables in its overall energy mix. Advances in solar, storage, and smart-grid technologies offer opportunities to leapfrog traditional power systems. One promising innovation is perovskite solar cells, a new class of photovoltaic (PV) material capable of converting up to 50 percent more sunlight into electricity than conventional silicon panels. This makes them particularly suitable for low-light conditions, including Bangladesh's monsoon seasons. Lightweight and adaptable, these cells can be printed or spray-coated, enabling applications such as "solar paint" on roofs or walls. Unlike traditional silicon PV, perovskites can be processed at near room temperature, significantly reducing manufacturing energy use and costs. Such high-efficiency, low-cost PV technologies could allow Bangladesh to expand capacity within limited rooftop and urban spaces while lowering adoption costs for households, industries, and SMEs.

Alongside perovskites, emerging technologies such as thin-film and organic photovoltaics (OPV) offer distinct advantages. They are lightweight, flexible, and inexpensive to manufacture. Thin-film cells can be produced on rolls or plastic substrates, making them suitable for curved roofs, portable devices, and building-integrated solar windows. In Bangladesh, thin-film modules could be installed on lightweight rooftops and building exteriors where heavier panels are impractical, while OPV films could supply power to village shops and small electronic devices.

Solar power generation typically requires more land than conventional power plants. As Bangladesh faces acute land constraints, floating photovoltaic (FPV) systems provide a way forward by enabling solar deployment on reservoirs, lakes, and ponds. Water acts as a natural coolant, improving panel efficiency and durability, while also reducing evaporation and algae growth. Bangladesh has already installed an FPV plant in Bagerhat, and this modular, scalable technology could rapidly add capacity without displacing farmers or occupying scarce land.

Agrivoltaics offers another solution by integrating solar panels and agriculture on the same land. Elevated PV arrays create dual-use fields where crops grow under partial shade while panels generate electricity. Studies show that this approach can increase overall land productivity, reduce water requirements, and raise combined crop and energy yields by 35 to 73 percent. In Bangladesh, trials with BRRI-33 rice indicate that intermittent shading does not reduce yields and may even improve plant growth, soil conditions, and water retention. A 100 MW semi-agrivoltaics project is already planned in Jamalpur, where green chillies, turmeric, and ginger will be cultivated beneath solar panels.

Beyond photovoltaic systems, solar thermal technologies also offer potential for renewable power generation. Thermoelectric generators, for example, can convert solar heat directly into electricity. Other solar thermal options, such as concentrating solar power (CSP), use mirrors or lenses to heat fluids that drive turbines. Unlike PV systems, CSP can store energy as heat—often using molten salt—and deliver electricity on demand. This feature is particularly valuable as it allows energy supply during periods of low sunlight. Feasibility studies, especially in the Dinajpur region, have identified significant potential for CSP deployment.

In addition to CSP, several storage technologies are being developed to support photovoltaic power. Flow batteries store energy in liquid electrolytes held in external tanks, separating power capacity from storage volume. They offer long lifespans, often exceeding tens of thousands of cycles, and allow full depth-of-discharge. Although their energy density is lower than that of lithium-ion batteries, flow batteries are well-suited to large-scale, multi-hour grid storage and can smooth daily or weekly fluctuations in renewable generation with minimal degradation. Bangladesh currently has no grid-scale flow battery installations, but declining costs could make them viable for island grids or long-duration solar storage.

Among long-duration storage solutions, pumped-storage hydropower (PSH) is the most established. It uses surplus electricity to pump water to an elevated reservoir, releasing it later to generate power during peak demand. PSH offers large capacity at a relatively low cost per kilowatt-hour and can operate reliably for decades. Although Bangladesh has no PSH plants at present, the 2016 Power System Master Plan has set a target for the first project by 2030. Locations such as Kaptai, where an existing hydroelectric dam operates, or reservoirs in the hilly northeast could provide gigawatt-hour-scale storage.

Modernising the power grid is essential to integrating renewable energy effectively. Smart grids use digital sensors, automated controls, and real-time data to optimise electricity flows and manage intermittent supply. In Bangladesh, US-funded studies have launched pilot projects in Dhaka and at the national transmission level to improve grid efficiency and flexibility. The 2025 net-metering reforms mark another important step. Under the revised policy, households and businesses can use rooftop solar for self-consumption and export excess electricity to the grid. Net exporters receive energy credits, which can be used to purchase electricity later. These measures encourage decentralised generation. When combined with smart-grid investments, these measures will help Bangladesh manage its expanding renewable capacity more efficiently.

Nafis Mubarrat is programme associate at South Asian Network on Economic Modelling (SANEM). He can be reached at nafis.sanem@gmail.com.
Sheikh Tausif Ahmed is research associate at SANEM.​

 

[Saif]

Industry first in gas supply to fuel economic growth

Industrial consumers will get top priority in gas supply as the government prepares such a fuel-feeding recipe aimed at fuelling economic growth, now largely subdued following political upheavals, sources say. "Industry will be on top of our priority and we want that the industrial consumers will

thefinancialexpress.com.bd

Rationing fuel in govt recipe
Industry first in gas supply to fuel economic growth
Petrobangla to ramp up LNG import in new year

M Azizur Rahman
Published :
Dec 27, 2025 23:37
Updated :
Dec 27, 2025 23:37

Industrial consumers will get top priority in gas supply as the government prepares such a fuel-feeding recipe aimed at fuelling economic growth, now largely subdued following political upheavals, sources say.

"Industry will be on top of our priority and we want that the industrial consumers will get as much gas as possible next year to run their industries," state-run Petrobangla Chairman Md Rezanur Rahman told The Financial Express Saturday.

As part of this plan, Petrobangla will be importing increased volumes of liquefied natural gas (LNG) from global suppliers next year," he said.

In 2026--the year close by now-the government corporation will import some 115 LNG cargoes, 5.50-percent higher than current year's imports.

Petrobangla now imports some 109 LNG cargoes from the international market under its set arrangements, he mentions.

"We don't want industrial output be hindered due to natural gas crisis," he says, adding that Petrobangla will utilise current year's experience in the coming year to ensure sufficient natural gas supplies to industries.

"We have month-wise data over demand for natural gas and supply to industries."

Currently, he says, they are providing natural gas to industries to the extreme level of their capacity.

Fertiliser factories are also getting increased volumes of gas, says Mr Rahman.

In the coming year, industrial consumers will get sufficient more gas even when the demand for natural gas for other consumers will increase, he assures.

In the current year, natural gas supply to industries increased by 21 per cent during the first four months until April 2025 compared to the same period of the previous year, 2024, according to official data of the Ministry of Power, Energy and Mineral Resources (MPEMR).

Average gas supply to industries during the first four months until April this year was 997 million cubic feet per day (mmcfd), compared to 823 mmcfd during the same period of the previous year, MPEMR data showed.

Petrobangla has raised gas supply to industries by around 150 million cubic feet per day (mmcfd) since late May following a government decision to import six additional LNG cargos.

The agency reduced gas allocations for gas-fired power plants to 1,050mmcfd from existing 1,200mmcfd to ramp up the fuel feeding to industries by 150mmcfd.

Some 100 mmcfd of additional gas was supplied to industries from additional LNG imports and some 150 mmcfd of gas was diverted to industries to ensure around 250mmcfd additional gas in total for industries from June to October before the advent of winter, said a senior MPEMR official.

The government is spending an additional Tk 110 billion to ensure enhanced gas supply to the industry this year.

"The government will have to count subsidy worth around Tk 35 per cubic meter for importing the additional LNG cargoes for industries," the official adds.

Sources have said that currently the government is providing new gas connections as an unofficial moratorium in previous years amid gas crisis is lifted. Rampant illegal gas connections across the country during the previous Awami League government over the past 16 years had led to the ceasing of new gas connections to industries 'unofficially,' industry insiders say.

"A strong syndicate led by the previous government high-ups, local public representatives, top officials of gas-marketing and -distribution companies and contractors provided scores of illegal connections depriving new industries where the necessity of such connections was vital," says one of the sources.

Currently, new piped gas connections to CNG (compressed natural gas)-filling stations, households and commercial consumers are stopped.

The commercial consumers include restaurants, residential hotels and guest houses, private hospitals, clinics, laboratories, educational institutions, community centres, community clubs, convention centres, snack -and bakery-item makers.

Traditional glass, chocolate, 'chanachur', vermicelli, biscuit, soap, ceramic, medicine, colour, 'agor-ator' distilled water, tannery, ice and ice-cream, and salt makers, who use hand-operated tools to manufacture their products, also belong to the commercial-consumer group.

New gas connections to hospitals, educational institutions and jails, however, continued.

New gas connections to captive power plants are discouraged, considering the increase in the country's overall electricity generation.

Country's overall natural-gas scarcity prompted Petrobangla to ration new connections to industries, fertiliser factories and power plants since June 2009.​

 

[Saif]

BPC profit surges on falling global oil prices

Profits by the state-owned Bangladesh Petroleum Corporation have continued to increase on the back of falling prices of petroleum fuel oils on the global market...

www.newagebd.net

BPC profit surges on falling global oil prices
Downward revisions needed to push down inflation: experts
Shakahwat Hossain 28 December, 2025, 00:40

Profits by the state-owned Bangladesh Petroleum Corporation have continued to increase on the back of falling prices of petroleum fuel oils on the global market.

But the consumers have been deprived of the falling import prices as the BPC, the lone marketing entity of fuel oils, has kept the domestic prices of the petroleum items at the elevated levels.

Energy Division officials revealed that the BPC had made a net profit of Tk 4,216 crore in the 2024- 25 financial year when the crude oil sold at $70 per barrel on average.

The BPC’s profit in FY25 grew more than 9 per cent over the net profit of Tk 3,943 crore in FY24, taking its overall profits to around Tk 64,000 crore in the past 11 years.

Energy officials said that the BPC’s average monthly profit of Tk 350 crore in FY25 grew further to around TK 400 crore in the first five months of the current FY26 as the average prices of crude oils had dropped below $60 per barrel.

On December 1, 2025, the BPC increased the prices of all categories of fuel by Tk 2 per litre.

Diesel is now selling at Tk 104, octane at Tk 124, petrol at Tk 120 and kerosene at Tk 116.

The previous price of each litre of diesel at Tk 102, octane at Tk 122, petrol at Tk 118 and kerosene at Tk 114 -- fixed on June 1 -- was kept unchanged by the BPC in its periodical review made in August 1, 2025 in line with the automatic price adjustment formula.

Introduced in February, 2024 to appease the International Monetary Fund, the price adjustment formula has blocked the scope for public hearing for price hike or decrease of fuel oils.

Consumer Association of Bangladesh energy adviser M Shamsul Alam criticised the present interim government for treating the BPC as a profit-making entity like the previous autocratic Awami League regime used to do.

Extreme unfairness has been going on in fixing the fuel oil prices, he said.

According to the Commodity Markets Outlook released by the World Bank in October 2025, the global oil glut has expanded significantly in 2025 and is expected to rise next year to 65 per cent above the most recent high -- in 2020.

Brent crude oil prices are forecast to fall from an average of $68 in 2025 to $60 in 2026 — a five-year low while the overall energy prices are forecast to fall by 12 per cent in 2025 and a further 10 per cent in 2026, added the WB report.

Policy Exchange Bangladesh chair M Masrur Reaz said that the interim government had failed to uphold its commitments to reflect international market prices in the domestic fuel oil prices.

The government should review the prices with no major price-hike forecast of petroleum products in the next year, he said.

Downward revisions of fuel oils will bring positive impacts across the board, he observed.

Majority people who have been struggling to maintain their daily expenditures amid high inflation over the past three years will get relief with the downward adjustment of fuel oil items, he further said.

On August 2022, a record 50 per cent hike in the prices of fuel oil items pushed up inflation in country.

Former World Bank Dhaka office chief economist Zahid Hussain said that the pressure on the fiscal side was always slim when prices of crude petroleum oils stay below $60 dollar per barrel.​

 

[Saif]

How our electric grid fosters inequality

At 2pm on a sweltering April day in a small workshop in rural Mymensingh, a welding machine goes silent.

www.thedailystar.net

How our electric grid fosters inequality

This state-designed monopoly logic feeds food inflation by pushing energy volatility from the grid into food prices. PHOTO: FREEPIK
At 2pm on a sweltering April day in a small workshop in rural Mymensingh, a welding machine goes silent. It was not because there was no electricity connection, but because the power had vanished again. At that exact moment, in a corporate high-rise in Dhaka, an air conditioner hums uninterrupted.

This split-screen reality exposes a structural reality: what Bangladesh has built is not a single power system serving a single economy, but a divided one.

On one side sits the state economy: an electricity regime engineered around megawatts contracted, capacity payments guaranteed, and fiscal stability preserved. It reliably powers government narratives, corporate enclaves, and politically insulated industry. Here, energy risk is underwritten by sovereign guarantees and absorbed by the public purse.

On the other side sits the bottom-of-the-pyramid economy, spanning agriculture, agri-processing, cottage industries, and small manufacturing. Here, electricity is not a convenience but a precondition for survival. The grid reaches farms, mills, cold storages, and workshops alike, but reliability does not. Risk here is not insured; it is absorbed by farmers through failed irrigation cycles, by poultry owners through heat losses, by millers through spoiled grain, and ultimately by consumers through food inflation.

For the millions of enterprises in this second economy, the celebrated "100 percent electrification" milestone is a vanity metric. Official data shows access exceeding 99 percent, yet productivity remains hostage to reliability. During the heatwaves of 2024, while urban centres faced manageable load shedding, rural feeder lines sustaining the productive base faced outages lasting six to seven hours a day. Small manufacturers were forced to burn diesel at over Tk 106 per litre just to meet deadlines—a massive cost increase over grid tariffs.

This instability bleeds directly into agriculture. Unreliable power forces farmers into gruelling nocturnal irrigation cycles and exposes poultry operations to catastrophic heat losses; industry bodies reported poultry sector losses running into Tk 16,000 crore over a single month. Cold storage operators are pushed onto diesel simply to prevent crops from rotting.

This state-designed monopoly logic feeds food inflation by pushing energy volatility from the grid into food prices. When energy risk is forced onto producers, it results in higher food prices, lower wages, and lost jobs. At the end of this value chain sit households: those that cannot absorb the shock go without a meal or two.

As a cottage industry's load approaches and crosses roughly the 50-kilowatt threshold, utility rules typically require a shift to high-tension supply, often necessitating the installation of a private 11 kV/0.4 kV substation, an investment that can cost Tk 15 to 25 lakh. Connection is permitted, but scaling is disincentivised.

Only once this trap is visible does the architecture behind it come into focus. For more than a decade, under the indemnity of the Speedy Supply of Power and Energy (Special Provision) Act, procurement rules prioritised speed over scrutiny, allowing capacity to be contracted without competitive discipline.

The fiscal consequences are now clear. In the revised FY 2024-25 budget, Tk 62,000 crore was allocated to power-sector subsidies. Recent analysis suggests that in FY 2023-2024, nearly 81 percent of this allocation, to the tune of Tk 32,000 crore, was absorbed by capacity charges. These are payments to plants regardless of whether electricity is actually produced.

This stark division is not a technical inevitability; it is a fiscal choice. The path forward requires treating the bottom-of-the-pyramid economy not as a charity case, but as the engine of growth. The updated Renewable Energy Policy 2025 explicitly recognises peer-to-peer electricity trading. If operationalised, a cluster of rice mills in Bogura or a weaving village in Sirajganj could generate, store, and trade solar power through a swarm-grid model. Decentralisation here is not ideological; it is about yield stability and food system resilience.

A quieter reform lies in finance. Every month, millions of farmers and rural entrepreneurs pay electricity bills. By integrating smart-meter usage with digital credit scoring, a farmer's steady irrigation history or a processor's consistent cold storage demand can become bankable proof of productivity. Finance can then follow performance, not paperwork—transforming energy from a recurring expense into financial infrastructure.

As long as the power sector protects the state economy while extracting from agriculture and small business, food inflation and broad-based unemployment will remain structural features of the economy. This is not a future risk; it is the present cost of a system that keeps capital comfortable and production expendable.

As such, the lights will stay on in the high-rises. The darkness has already been outsourced to the fields and workshops below.

Saba El Kabir is a development practitioner and founder of Cultivera Limited.​

 

[Saif]

Is the LNG pathway sustainable for Bangladesh?

The combination of soaring natural gas demand and plummeting domestic production has pushed the Bangladesh government to diversify its energy sources. In the past, various plans, including the Integrated Energy and Power Master Plan 2023,

www.thedailystar.net

Is the LNG pathway sustainable for Bangladesh?
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FILE VISUAL: ANWAR SOHEL

The combination of soaring natural gas demand and plummeting domestic production has pushed the Bangladesh government to diversify its energy sources. In the past, various plans, including the Integrated Energy and Power Master Plan 2023, have attempted to address this concern, but they have driven a shift towards imported liquefied natural gas (LNG) instead. As a result, the LNG pathway, pursued as a fuel diversification strategy without enough investment in domestic gas exploration, has become an economic burden for the country.


With surging LNG imports, the government has drastically increased gas tariffs, making industrial production expensive. Yet, the government pays a hefty annual subsidy on account of LNG imports. Unless Bangladesh streamlines its energy pathway, the reliance on imported LNG may further expose the vulnerability of its energy system, leading to a recurring subsidy problem.

Bangladesh's LNG imports surged by 21.7 percent and 13.86 percent in FY2023–24 and FY2024-25, respectively, following a 15.45 percent reduction in FY2022-23. The country's LNG imports declined in FY2022–23 due to elevated spot market prices and tight fiscal conditions. Imports, however, rebounded in the subsequent years because of affordable LNG prices.

While the contribution of expensive LNG to total gas consumption stands at 28.8 percent, the government is gradually passing the additional costs on to different sectors, excluding grid-based power generation. Between February 2023 and April 2025, the government raised gas tariffs for industrial production twice and captive power generation thrice. The gas price for industrial production increased from Tk 16/ cubic metre (m3) ($0.13/m3) to Tk 40/m3 ($0.33/m3), while the gas price for captive power generation soared to Tk 42/m3 ($0.33/m3) from the same level.

On a ballpark estimate, industries, excluding the fertiliser sector, incurred additional costs of approximately Tk 4,560 crore ($0.37 billion) in FY2023–24 compared with FY2022–23 due to gas price hikes (calculated using gas consumption and tariffs for the respective years). This occurred despite a 5.9 percent year-on-year decline in gas supply to the sector.

Likewise, the government received additional payments of approximately Tk 3,160 crore ($0.26 billion) from gas-fired captive power generators during the same period, driven by higher tariffs. Notably, gas supply to captive power generation declined by 6.5 percent.

Bangladesh's average gas supply in FY2024-25 was 2,679 million cubic feet per day (MMcfd)—derived from the annual consumption of 978 billion cubic feet (Bcf)—against a demand of around 4,000MMcfd. This implies a gas supply deficit of more than 1,300MMcfd. With domestic production declining at an average rate of 4.64 percent per annum since FY2018–19, this demand-supply gap may widen further, potentially prompting the government to enhance regasification capacity and increase LNG imports.

While the government has set a goal of adding local gas of 648MMcfd and 1,500MMcfd to the grid by 2025 and 2028, respectively, it should keep sufficient funds for exploration. The allocation to the energy sector as part of the annual development programme stands at a paltry Tk 2,086 crore ($0.17 billion), which is inadequate to achieve this year's goal. Available reports suggest that the government's initiatives may add only 143MMcfd of gas to the grid in 2026.

The government is also planning to float an international tender to explore onshore gas to ramp up local production. In the event of moderate success, if Bangladesh connects 1,000MMcfd of new gas, including the announced 143MMcfd, to the grid by FY2029–30, domestic gas production will reach 2,500MMcfd (assuming existing gas supply continues to decline at the current rate of 4.64 percent per annum). Therefore, even to meet the current demand of 4,000MMcfd in FY2029–30, the country will need to import 1,500MMcfd of LNG. The annual LNG import will then rise to 547Bcf, making an annual payment obligation of more than $5 billion in FY2029–30 (taking $10/MMBtu of LNG, based on Bangladesh's long-term contracts and recent spot-market purchases).

In a less favourable scenario of limited local discovery and high price volatility, Bangladesh could pay as much as $8.5 billion in FY2029-30 on account of LNG imports (assuming the government adds 500MMcfd of domestic gas to the grid, existing gas supply continues to fall at the current rate of 4.64 percent per annum, and the average LNG price reaches $12/MMBtu). Alternatively, the unaffordability of LNG and fiscal constraints could worsen the energy supply shortfall, thereby stifling economic activities.

Despite massive gas price hikes in the last two-and-a-half years, the government allocated a subsidy of Tk 9,000 crore ($0.74 billion) for LNG imports in its FY2025–26 budget. Low gas tariff for grid-based power plants is one of the key reasons behind this hefty subsidy burden. For instance, the government charges power plants at Tk 14.75/m3 ($0.12/m3), which means it must provide a subsidy of around Tk 29.85/m3 ($0.24/m3) if the LNG price is $10/MMBtu.

High LNG dependence in the near future may prompt the government to raise gas tariffs for grid-based power plants, affecting the Bangladesh Power Development Board (BPDB). With rising generation costs, BPDB's revenue shortfall is likely to widen. The government might pivot to adjust power tariffs to provide BPDB some relief.

As Bangladesh is yet to lock in a very high LNG dependence, the best course of action for the country is to design an alternative energy pathway, focusing on utilising renewable energy and local gas. There are two concrete examples. In 2020, Vietnam installed more than nine gigawatts (GW) of rooftop solar capacity, backed by a guaranteed feed-in-tariff. Pakistan imported solar panels and battery packs of 17GW and 1.25 gigawatt-hours (GWh) capacities in 2024, leading to a solar boom amid the country's energy supply crunch and unaffordable power tariffs. This surge in solar power generation resulted in a subdued demand for LNG in Pakistan.

The key to Bangladesh's success in enhancing energy system resilience is to expand renewable energy at a faster rate by focusing on decentralised systems like rooftop solar. Meanwhile, the government can allocate sufficient budgetary resources to explore local gas and strengthen energy efficiency to wean itself off its LNG reliance.

Shafiqul Alam is lead energy analyst for Bangladesh at Institute for Energy Economics and Financial Analysis (IEEFA).​

 

[Saif]

Bangladesh's energy security faces challenges from heavy reliance on imported fossil fuels, aging infrastructure, and high costs, leading to recent crises with load shedding and price hikes, despite improvements in power access and some diversification efforts. Key strategies involve increasing LNG imports, boosting domestic production (especially gas), improving grid efficiency, managing volatile international fuel markets, and investing in renewables to balance affordability, availability, and sustainability.

Key Challenges​

• Import Dependence: Over-reliance on imported natural gas, coal, and oil makes Bangladesh vulnerable to global price volatility and supply disruptions.​
• Infrastructure Gaps: Aging grid infrastructure, high system losses, and inefficient power generation strains the system.​
• Affordability & Access: Rising tariffs impact low-income groups, while ensuring equitable access remains a challenge, notes ScienceDirect.com.​
• Demand Growth: Rapid urbanization and industrialization outpace supply, intensifying the crisis, according to CPD.org.bd.​

Current Strategies & Initiatives​

• LNG Imports: The World Bank supports projects like the Energy Sector Security Enhancement Project to secure LNG imports for Petrobangla.​
• Domestic Production: Efforts to enhance domestic natural gas supply from fields like Bibiyana are crucial.​
• Renewable Energy: Developing solar, wind, and other renewables offers a path to sustainability, though investment is needed.​
• Grid & Efficiency: Projects focus on reducing system losses, improving vehicle emissions, and modernizing infrastructure, notes World Bank Group.​

Future Directions​

• Diversification: Moving beyond fossil fuels to a balanced mix of renewables, LNG, and efficient domestic sources is essential.​
• Policy & Governance: Implementing stable policies, improving energy management, and attracting private investment through mechanisms like green bonds are vital.​
• Energy Efficiency: Promoting conservation and reducing waste can significantly ease demand pressure, says The Daily Star.​

In essence, Bangladesh aims to transition from a vulnerable, import-heavy system to a more resilient, diverse, and sustainable energy framework, though achieving true energy security requires addressing its affordability and access dimensions alongside supply.
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[Saif]

LPG cylinder-price hike and BERC inaction

The Bangladesh Energy Regulatory Commission (BERC) has fixed the price of a 12-kg LPG (liquid petroleum gas) cylinder at Tk1,253 but its retail price has now crossed the Tk 2,000 mark. However, according to a report carried in a leading contemporary, the unilateral price hike is not uniform. The pr

thefinancialexpress.com.bd

LPG cylinder-price hike and BERC inaction
Neil Ray

Published :
Jan 05, 2026 00:42
Updated :
Jan 05, 2026 00:42

The Bangladesh Energy Regulatory Commission (BERC) has fixed the price of a 12-kg LPG (liquid petroleum gas) cylinder at Tk1,253 but its retail price has now crossed the Tk 2,000 mark. However, according to a report carried in a leading contemporary, the unilateral price hike is not uniform. The price varies from one area to another and even from one retail shop to another. If a LPG cylinder is sold at Tk1,500 somewhere, the selling price is Tk1,800 elsewhere. This means the regulatory system has broken down. The retailers are forcing customers to pay as much as they can, citing supply shortage of gas cylinders. Granted that there is an import crunch of the LPG gas because of blacklisting of 29 ships responsible for carrying this particular fuel. Thus the import of LPG plummeted from the usual 130,000-140,000 tonnes to only 90,000 tonnes last month.


This is no reason for an instant gas crisis. The LPG Operators Association of Bangladesh (LOAB), as its vice-president claims, has not raised the price of gas cylinders even though the import is 40 per cent lower in December last. So the price spiral appears to be orchestrated by the retailers on the pretext of supply shortage. Every time there is a lame excuse for hiking price of essentials. Why cannot the rule based on the moral standpoint prevail to the effect that as long as the authorities do not raise the prices, the last item would be sold at the previous rate? But any hint of supply crunch prompts a chain reaction of price escalation in this country. Involved here is a sensitive item like gas cylinders that are mostly used for cooking at the domestic level.

If the price of this fuel is atrociously raised, its impact on families and the economy will be highly adverse. Since April, 2021, the BERC has been adjusting prices of LPG cylinders every month. The purpose is to be in line with the trend of international price of this fuel. The unavailability of ships for transhipment of gas may have temporarily disrupted the supply chain due to blacklisting of almost two and a half dozens of ships by the US administration. This can be overcome gradually but it could be worse if petroleum products in the international market marked a sharp increase. When that has not happened, this profit-mongering display at the domestic level is certainly unacceptable. Those who have triggered the process are violating the law of the land and, in fact, branding themselves as the enemies of the people. Then the LOAB has not helped the cause by drastically limiting supply of gas cylinders.

If a lower middle-class or poor family have to pay Tk 2,000 for this essential item for cooking, it is sure to prove too much for them. They have been reeling from lower income compared to unrelenting inflation. Import of LPG is likely to put the country to further tests in the coming days. Such dependence on imported fuel will threaten the country's development programmes if there is no alternative to it for overcoming supply disruptions for multifarious reasons. The country has to wean away from LPG import to domestic sources of energy, including green energy. This cannot be done overnight but the process should begin with right earnest in order to explore both onshore and offshore natural gas.

As for meeting the immediate crisis, a vigorous search for ships capable of carrying LPG from the Middle East or any other source to this country's shore should be launched right now. True, international shipping is guided by strict schedules. But this is abnormal time when the powerful nations, in defiance of the United Nations charters, attack a weak nation or subject it to capricious commercial restrictions. Why those 29 ships were blacklisted is again the result of hubris of the mighty. So the country has to initiate its own agenda for overcoming the shipment problem. But the interim government is better known for its inaction. Inertia and casual approach have no place in a world riven by fractious international relations and equation.​

 

[Saif]

Energy adviser blames retailers and wholesale traders for high gas price

Muhammad Fouzul Kabir Khan, adviser on power, energy and mineral resources, has blamed retail and wholesale traders for the recent unusual rise in liquefied petroleum gas (LPG) prices. He said the surge is temporary and will ease gradually. He made the remarks in response to query while...

en.prothomalo.com

Energy adviser blames retailers and wholesale traders for high gas price

Staff Correspondent Dhaka
Published: 06 Jan 2026, 18: 47

Fouzul Kabir Khan, adviser on power, energy and mineral resources File photo

Muhammad Fouzul Kabir Khan, adviser on power, energy and mineral resources, has blamed retail and wholesale traders for the recent unusual rise in liquefied petroleum gas (LPG) prices. He said the surge is temporary and will ease gradually.

He made the remarks in response to query while speaking to newspersons following a meeting of the government procurement advisory committee at the secretariat Tuesday.

At the consumer level, the price of private-sector LPG has risen by Tk 4.42 per kilogram. For this January, the price of a 12-kg cylinder has been set at Tk 1,306. Last month (December 2025), it was Tk 1,253. This means the price of 12-kg cylinder has increased by Tk 53. The price increased by Tk 38 last month.

The adviser on power, energy, and mineral resources said mobile courts are being conducted against businesses that have raised LPG prices abnormally. Measures are also being taken to reopen shops that remain closed.


When asked whether those involved in the price manipulation have been punished, the energy adviser said yes, in many cases they have been. The operations are being carried out by the district administration, the police, and the Directorate of Consumer Rights Protection.

The energy adviser said information on LPG price hikes is being provided by the Bangladesh Energy Regulatory Commission (BERC), adding, “We will see whether anyone at BERC is involved in this.”

Adviser Fouzul Kabir Khan said some vessels are under restrictions and added, "We are trying to address the shipping issues for the future."

On the household gas shortage, he said, “There is local gas production, and imports are also made. Neither is lacking. It should be remembered that in winter, gas pipelines face problems, and even overseas pipelines are affected. This causes issues in gas supply. The planned amount of LNG is being brought in.”​