[🇧🇩] Energy Security of Bangladesh

[Saif]

Bangladesh to import 2 more spot LNG cargoes before Eid-ul-Fitr

Bangladesh’s state-run Rupantarita Prakritik Gas Company Ltd (RPGCL) intends to buy two more spot LNG cargoes during the second half of the current month before the ensuing Eid-ul-Fitr to meet mounting demand during Ramadan. The RPGCL has already floated tenders to purchase the spot liquefie

thefinancialexpress.com.bd

Bangladesh to import 2 more spot LNG cargoes before Eid-ul-Fitr
FE ONLINE REPORT
Published :
Mar 08, 2025 20:51
Updated :
Mar 08, 2025 20:51

Bangladesh’s state-run Rupantarita Prakritik Gas Company Ltd (RPGCL) intends to buy two more spot LNG cargoes during the second half of the current month before the ensuing Eid-ul-Fitr to meet mounting demand during Ramadan.

The RPGCL has already floated tenders to purchase the spot liquefied natural gas (LNG) cargoes for March 25-26 and March 30-31 delivery windows, said a senior RPGCL official.

If these two tenders become successful, Bangladesh will be able to bag five spot LNG cargoes for March deliveries, which would be the highest LNG purchase from spot market in a single month.

The country’s energy demand is expected to go up during Ramadan and subsequent months afterwards to meet growing demand for irrigation and summer.

According to the weather forecast of the Bangladesh Meteorological Department (BMD), a couple of heat waves are expected to hit over the western and southwestern parts of Bangladesh this month, and the temperature is set to reach around 40 degrees Celsius.

There would be a couple of mild, ranging 36-38 degrees Celsius, and moderate, ranging 38-40 degrees Celsius, heat waves during the later part of March, the BMD said.

There is a possibility of severe nor'westers this month.

The bid winners will deliver the LNG cargoes at Moheshkhali island in the Bay of Bengal, with options to discharge the cargo at either of the country’s two floating storage re-gasification units (FSRUs) located on Moheshkhali island.

The RPGCL, a wholly owned subsidiary of state-run Bangladesh Oil, Gas, and Mineral Corporation, or Petrobangla, looks into LNG trades in Bangladesh.

The volume of each of the spot LNG cargoes will also be around 3.36 million MMBtu.

Bangladesh previously awarded its latest spot LNG cargo tender to Gunvor Singapore Pte Ltd for the March 15-16 delivery window at US$15.47 per million British Thermal Unit (MMBtu).

Bangladesh currently imports LNG from Qatar Energy and OQ Trading International under long-term deals and purchases LNG also from the spot market to re-gasify LNG in its two operational FSRUs, which have a total capacity of 1.10 billion cubic feet per day (Bcfd).

The country has been reeling from an acute energy crisis as its natural gas output is depleting.

Bangladesh has been rationing gas supply to industries, power plants, and other gas-guzzling industries to cope with the mounting demand.

The country’s overall natural gas supply is currently hovering around 2,843 million cubic feet per day (mmcfd), including 952 mmcfd of re-gasified LNG against the demand for over 4,000 mmcfd, according to official data of Petrobangla as of March 8.​

 

[Saif]

Proposals for setting gas tariffs unconstitutional: BCI

The basis proposed for setting gas tariffs is unconstitutional, against the laws and against the principles of fairness, according to the Bangladesh Chamber of Industries (BCI) recently.

www.thedailystar.net

Proposals for setting gas tariffs unconstitutional: BCI

The basis proposed for setting gas tariffs is unconstitutional, against the laws and against the principles of fairness, according to the Bangladesh Chamber of Industries (BCI) recently.

The proposals were to set gas tariffs solely based on the liquefied natural gas (LNG) import price for new connections and excess gas usage than the sanctioned load for existing connections, it said.

The "unrealistic" and "one-sided" gas price hike during the previous government was the main reason behind the troubles being faced by industries, it added.

In a letter to Bangladesh Energy Regulatory Commission (BERC) on March 9 following a public hearing on price hike proposals, the BCI demanded to reduce gas prices through the curbing of system losses.

"Before the price hike, energy cost used to be 5 to 6 percent among the overall production cost, which now stands at 10-15 percent," wrote the chamber of the industrial community.

For example, the energy cost for producing one yard of fabric was Tk 18 in 2022, and it increased to Tk 26 in 2023, said the letter.

Besides, the cost per kilogramme (kg) for yarn production reached $2.45, whereas it is possible to import each kg of knit fabric from neighbouring countries at $2.18, it said.

As a result, in 2024, knitwear imports increased by 39 percent. "How will industries survive under these conditions?" asked the BCI.

"During the gas price hike in 2023, a promise was made to entrepreneurs for uninterrupted gas supply, but entrepreneurs are receiving only 30-40 percent of the required gas, and production is being hampered due to low pressure," it said.

The BCI said production of every industrial establishment has decreased by 30 percent to 40 percent.

This is due to the "one-sided" decision and the failure to provide uninterrupted gas supply, particularly in areas like Gazipur, Ashulia, Savar, Narayanganj, Munshiganj, Bhaluka, and Narsingdi, it said.

For some industries, such as ceramics and steel, production has decreased by 50 percent, it said.

Consequently, the contribution of industries to the GDP dropped from 8.37 percent in fiscal year 2022-2023 to 3.57 percent in the fiscal year 2023-24, the letter said.

The private sector loan growth increased, foreign direct investment decreased and other indicators also reflect the troubles faced by industries, it said.

The BCI argued that the articles 27 and 31 of the constitution guarantee equality for all and if the proposals were implemented, the same customers would be treated unequally.

Besides, the Gas Act 2010 and BERC Act 2003 clearly state that its goals were to create a competitive market through the participation of the private sector and individuals whereas the proposals were noncompetitive, it said.

"Regardless of the time of connection, all gas customers use a mix of gas supplied from the national grid and imported LNG," it said.

"Therefore, imposing a price nearly two and a half times higher for new customers than for those who were previously connected is contrary to the constitution, the law, and the principles of fairness," the letter concluded.

The consideration of such proposals from the regulatory body caused panic among business owners and entrepreneurs across the country, the letter said.

The BCI suggested to reduce the price from Tk 30 per unit to Tk 24.39 for industrial and business sectors.

It urged to improve the efficiency of the gas distribution companies and cited that reducing waste, particularly reducing the huge system loss of the Titas Gas Transmission and Distribution PLC (13.53 percent) to a minimum level, is necessary to increase gas supply.

Furthermore, it suggested that operating coal-fired power plants at full capacity, removing double VAT and source taxes on LNG imports, and reducing other charges imposed by Petrobangla and BERC, which could lower gas prices as well.

"Business leaders believe that this proposal to increase gas tariffs has thrown everyone concerned in the industrial and business sectors into a state of uncertainty," the letter added.​

 

[Saif]

Fusion energy: The holy grail of clean power

The Earth possesses virtually inexhaustible reserves of the raw materials—deuterium and tritium—essential for a fusion reactor.

www.thedailystar.net

Fusion energy: The holy grail of clean power

General view of the circular bioshield inside the construction site of the International Thermonuclear Experimental Reactor (ITER) in Saint-Paul-lez-Durance, southern France, on November 7, 2019. FILE PHOTO: REUTERS

In light of the escalating challenges associated with climate change, the pursuit of a sustainable, renewable, clean, and plentiful source of energy has reached unprecedented importance. Accordingly, physicists have been investigating the energy released during nuclear fusion reactions, but the challenge of converting it into a viable source of energy has proven to be persistently difficult.

However, the question persists regarding the potential of nuclear fusion to become a primary source of energy for our increasingly power-dependent world. If this possibility is indeed attainable, will it be achieved in time to prevent the catastrophic consequences of climate change?

Nuclear fusion replicates the mechanism that fuels the stars, presenting the prospect of a clean and nearly unlimited supply of energy. In contrast to fossil fuels, fusion does not emit greenhouse gases (GHGs). The fusion reaction, which involves the combination of light atomic nuclei—specifically, isotopes of hydrogen such as deuterium and tritium—offers the promise of generating energy with minimal carbon dioxide (CO2) emissions while avoiding the hazardous, long-lasting radioactive waste linked to current nuclear fission reactors that split heavy radioactive nuclei, uranium-235 or plutonium-239.

The Earth possesses virtually inexhaustible reserves of the raw materials—deuterium and tritium—essential for a fusion reactor. Deuterium is abundantly available in ocean water, with sufficient quantities to feed a reactor for billions of years, but naturally occurring tritium is exceedingly scarce. Nevertheless, it can be generated in a reactor through the neutron activation of lithium, which can be sourced from brines, minerals, and clays.

Despite notable advancements, many challenges remain in the development of a commercially viable fusion reactor. The major ones are: i) reaching the temperature (exceeding 100 million degrees Celsius) necessary to initiate a self-sustaining fusion reaction; ii) containing the extreme heat produced in the plasma, an ultra-hot mixture of gases where electrons are entirely separated from their atomic nuclei; and iii) maintaining the plasma at this superhot temperature for a sufficient duration so that the energy produced surpasses the input energy needed to sustain the process.

The International Thermonuclear Experimental Reactor (ITER), a collaborative project involving 35 nations and currently under construction in Cadarache, France, represents the world's largest fusion reactor. Once operational, it is expected to achieve continuous energy output at a power plant scale, approximately 500 megawatts. However, since its establishment in 2006, the ITER has experienced uneven progress, facing numerous technical setbacks, a complex decision-making framework, and a significant increase in cost projections, which have escalated from five billion euros to nearly 20 billion euros. Additionally, the planned operational start in 2035 may be pushed back to the 2040s.

One of the challenges the ITER faces is how to control the hot plasma at a temperature of around 100 million degrees and keep it away from the walls of the container. No known material can withstand such a high temperature; even extremely heat-resistant metals such as tungsten would melt instantly.

Physicists have developed two rival methods for managing the hot plasma and preventing it from contacting the walls of its containment vessel. These methods are known as magnetic confinement and inertial confinement. The procedures necessitate exceptional precision. Additionally, the intensely heated plasma is inherently unstable—it tends to form large temperature gradients, resulting in powerful convection currents that make the plasma turbulent and difficult to control.

Moreover, a sustained fusion reaction that produces substantially more energy than it consumes has never been achieved. The ITER, which uses magnetic confinement by employing a doughnut-shaped chamber in which magnetic fields keep the plasma in perpetually looping paths without touching the walls, still has not produced a sustained reaction. The longest fusion reaction achieved so far is 17 minutes and 46 seconds, set recently in China.

Attaining the sought-after goal of "net energy" in nuclear fusion has been the holy grail for scientists working in this domain. A net energy gain was notably demonstrated in December 2022 at the National Ignition Facility (NIF), a laser-based inertial confinement fusion research lab located at Lawrence Livermore National Laboratory in California. At the NIF, plasma is produced by directing intense lasers at a small pellet filled with deuterium and tritium.

The ratio of output energy to input energy at the NIF was 1.5. Although this accomplishment represents an important milestone, it is still far from establishing fusion as a practical source of energy. For fusion reactors to be deemed viable for commercial energy generation, they must attain a threshold ratio of 10. The challenges associated with inertial confinement are considerable as well, and at present, only a handful of facilities around the globe are dedicated to its research.

The widely reported success at the NIF elicited a typical range of responses: fervent endorsement from proponents of the technology and scepticism from detractors, who contend that scientists have consistently claimed that practical fusion energy is just two decades away—or three or five decades, depending on the viewpoint. Furthermore, energy production is not a primary objective of the NIF. The facility was primarily designed to initiate nuclear reactions for the purpose of studying and maintaining the US's nuclear arsenal.

As we look to the future, there are compelling reasons to believe that fusion energy will play a consequential role in the energy landscape, particularly as more developing and underdeveloped nations begin to demand levels of energy consumption comparable to those of Western countries. That being said, fusion is not a panacea for mitigating the devastating effects of climate change. Addressing climate change requires decarbonisation of the atmosphere using available technologies, including renewable sources such as solar and wind power, hydropower, geothermal energy, and potentially carbon capture methods.

As for the question of when nuclear fusion will become a reality, there is no clear answer. Nonetheless, experts generally agree that the likelihood of achieving large-scale energy production through nuclear fusion is unlikely before 2050, with some more cautious projections suggesting an even longer timeline. Given that the rise in global temperatures over the coming decades will likely be heavily influenced by our actions—or lack thereof—regarding GHG emissions during this period, it is evident that fusion cannot be considered a near-term solution.

Dr Quamrul Haider is professor emeritus at Fordham University in New York, US. He is one of the authors of the book 'Nuclear Fusion: One Noble Goal and a Variety of Scientific and Technological Challenges' (Intech Open, London, UK, 2019).​

 

[Saif]

Bangladesh govt weighs open-pit coal mining

The interim government is weighing the option of open-pit coal mining, reviving a controversy settled almost two decades ago with the sacrifice of three lives in a rare protest in Phulbari of Dinajpur.

www.newagebd.net

Bangladesh govt weighs open-pit coal mining
Emran Hossain 09 March, 2025, 00:07

$15b investment from unnamed mining co guaranteed

The interim government in Bangladesh is weighing the option of open-pit coal mining, reviving a controversy settled almost two decades ago with the sacrifice of three lives in a rare protest in Phulbari of Dinajpur.

The protest prompted the then government, led by Bangladesh Nationalist Party, to sign an agreement with the protesters, led by the National Committee to Protect Oil, Gas, Mineral Resources, Power and Port.

Scrapping the mining project and cancelling the work permit of Asia Energy, the UK-based company involved in the open-pit mining project, were two of the six points on which the agreement was reached in August 2006.

Asia Energy was later renamed—Global Coal Management Resources.

The Hydrocarbon Unit of the power and energy ministry on February 27 hosted a discussion attended by energy experts, geologists and consumer rights activists with a presentation that categorically promoted open-pit coal mining, particularly in Phulbari.

‘Open-pit mining is not possible in Bangladesh due to its high population density and land scarcity,’ said energy expert Badrul Imam who teaches geology at Dhaka University.

An area double the size of the mine must be there to dump dug-out earth, he explained, adding that the withdrawal of groundwater to facilitate mining will also create water crisis in the area.

The proposition made by the government in the presentation of the Hydrocarbon Unit about restoring land in the mine area with its fertility is also considered far-fetched and impossible by energy experts.

At least 15 villages near the Barapukuria coal mine, Bangladesh’s only active coal mine, where underground mining is in progress, lost their access to water.

The interim government is in favour of open-pit mining in Barapukuria as well.

In February 2012, concerned by a move by the past Awami League government in favour of open-pit coal mining at Phulbari, a group of experts from the United Nations noted that the move would displace an estimated 50,000–1,30,000 people and affect 2,20,000 others by drying up wells.

Awami League was in the opposition during the 2006 unrest and proactively supported the protesters, promising not to allow open-pit coal mining ever in Bangladesh.

The project would destroy some 12,000 hectares of productive agricultural land, waterways supporting 1,000 fisheries, and nearly 50,000 fruit trees, as the mine is located in Bangladesh’s most fertile agricultural land, the UN experts had noted.

The International Accountability Project earlier estimated that 800 million litres of groundwater would need to be lifted to maintain dry condition in the mine, which has deposits at the depth between 150 and 260 metres.

The International Accountability Project also cited the departure of the Australia-based mining giant BHP Billiton from the mine after concluding that the depth of the coal deposits would make mining activity so destructive that it would not be feasible to comply with Australia’s environmental standards or those of any country worldwide.

‘One thing we must remember is that the interim government does not have the authority to decide on an issue like open-pit extraction,’ said Kazi Matin Uddin Ahmed, who teaches geology at Dhaka University and attended the meeting.

The interim government, which replaced the autocratic rule of Sheikh Hasina, is in power to help organise the national election and lacks any mandate to consider doing something regarding the management of natural resources, energy experts observe.

‘The presentation could easily replace the one that the Asia Energy had presented decades ago,’ said professor M Shamsul Alam, energy adviser, Consumers Association of Bangladesh.

‘The government is favouring open-pit coal mining, saying that it intends to start the discussion, making things easier for the next government,’ said Shamsul Alam, who also attended the government discussion.

The Hydrocarbon Unit completed the presentation, made by its director Arup Kumar Biswas, in 17 slides concluding that open-pit coal mining is the only feasible way for coal extraction in Phulbari.

Starting with the recent rise in global coal consumption, particularly in Asia, the presentation argued that coal would remain a major energy source through 2040.

The presentation gave a wrong estimate of the country’s current coal-based installed power generation capacity, inflating the actual capacity by over 2,500MW, while saying that open-pit mining would meet an estimated annual demand of up to 30 million tonnes, saving $4 billion.

Stating that the country’s minable coal deposit is 834 million tonnes, the presentation listed the benefits of open-pit coal mining through comparisons with underground mining and boasted technological advances.

According to the presentation, open-pit mining lowers health risks, reduces mining time while ensuring maximum output, and results in the extraction of co-products.

The Hydrocarbon Unit assured in the presentation of partially refuelling the aquifer, restoring 5,192 hectares of land, half of it agricultural land, to its previous fertile condition and giving farmers their livelihood back within three to five years after the end of mining.

The presentation was also flooded with many economic benefits of open-pit mining in Phulbari, such as the extraction of coal worth $83 billion over 30 years, an income of $16 billion in royalty and taxes, and an extra income of $17 billion from co-products.

The presentation also guaranteed in the presentation a $15 billion investment in working capital and operation from the mining company. The Hydrocarbon Unit, however, did not say who the investor could be.

Power and energy adviser Muhammad Fouzul Kabir Khan could not be reached for comments over phone. Energy secretary Mohammad Saiful Islam did not answer his phone either.

A search online revealed that the GCM Resources was actively pursuing the Phulbari open-pit coal mine project.

The Global Energy Monitor Wiki, an online database of energy projects around the world, shows that Phulbari mine is still a property of the GCM Resources. It has also listed significant developments until 2022 regarding the GCM’s striking a deal with others, mainly from China, to develop the Phulbari coal mine.​