[🇧🇩] Energy Security of Bangladesh

[Saif]

RPGCL reissues tender to buy 2 spot LNG cargoes for August deliveries

State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) has reissued tender to buy two LNG cargoes, scheduled for delivery during August 21-22, and August 28-29. Each cargo will contain 3.36 million British thermal unit (MMBtu) and will be delivered to Moheshkhali Island in the Bay of Be

thefinancialexpress.com.bd

RPGCL reissues tender to buy 2 spot LNG cargoes for August deliveries

FE ONLINE REPORT
Published :
Jul 16, 2025 20:23
Updated :
Jul 16, 2025 20:23

State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) has reissued tender to buy two LNG cargoes, scheduled for delivery during August 21-22, and August 28-29.

Each cargo will contain 3.36 million British thermal unit (MMBtu) and will be delivered to Moheshkhali Island in the Bay of Bengal, with discharge at either of the country's two floating storage and regasification units (FSRUs) located there.

The bid submission deadline is July 20, a senior RPGCL official said.

The RPGCL has sought the selected short-listed spot liquefied natural gas (LNG) suppliers to re-submit bids as the previous tender faltered due to higher-than-expected price quotes.

Bangladesh has already bought two spot LNG cargoes for delivery in August, said the official.

The country previously procured five spot cargoes in July and six in May, the highest in any single month so far.

RPGCL, a wholly-owned subsidiary of Petrobangla, is responsible for handling the country's LNG imports.

Bangladesh currently imports LNG under long-term supply contracts with QatarEnergy and OQ Trading International, and supplements this supply with short-term spot market purchases as needed.

The country's two operational FSRUs at Moheshkhali have a combined re-gasification capacity of 1,100 million cubic feet per day (mmcfd). Yet the gas supply deficit persists, driven by rapidly depleting domestic natural gas production.

As of July 15, 2025, Bangladesh's total natural gas output, combining both local production and imported LNG, stood at 2,844 mmcfd, while estimated demand exceeded 4,000 mmcfd, according to official data.

This shortfall has forced authorities to ration gas supply to power plants, industrial units, and other key consumers to manage the ongoing crisis.​

 

[Saif]

Getting rid of shady private power deals

As a temporary answer to the acute supply shortage in the national grid, a number of power plants were set up in the private sector during the previous autocratic regime. But the contracts for those quick rental, rental and independent power plants (IPPs) were arbitrarily awarded to companies favou

thefinancialexpress.com.bd

Getting rid of shady private power deals

FE
Published :
Jul 18, 2025 23:31
Updated :
Jul 18, 2025 23:56

As a temporary answer to the acute supply shortage in the national grid, a number of power plants were set up in the private sector during the previous autocratic regime. But the contracts for those quick rental, rental and independent power plants (IPPs) were arbitrarily awarded to companies favoured by the authorities of that time and not through any competition by way of open biddings. So, to shield such deals from any legal challenge as well as provide impunity to those power companies, the government of the time passed an indemnity law, styled, "The Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010". Notably, section 9 of the Act states that no court may question the validity of any actions, decisions or orders made under the law. Section 10 of the Act, on the other hand, provides complete immunity to employees/officers performing their tasks from any criminal or civil criminal proceedings in the court.

Run by expensive fossil fuels like diesel, furnace oil and coal, those private power plants were meant to be replaced within three to five years with less expensive state-owned power plants. But their operation continued though many government-owned power plants were meanwhile built resulting in a 50 per cent overcapacity of all the power generation units so installed. Under the condition of the contracts, the government went on paying capacity charge meaning payments made to the private power companies according to their installed capacities, and not on the basis of how much power they actually produced. Naturally, after the fall of the autocratic government followed by establishment of the current interim administration, energy experts advised the incumbent government to review and even cancel, where necessary, the contracts awarded to the rental power plants. Also, in September last year, the High Court (HC) issued a rule asking why the provision that acquits rental and quick rental power plants from any questioning regarding their establishment and operations should not be declared illegal. However, the HC made allowance for any action already taken in good faith in exercise of the two noted sections of the indemnity law to avoid any legal complexities. Given that all the quick rental and rental power plant contracts under the ousted regime were concealed from the public scrutiny under cover of the indemnity law, it is hard to speculate what legal and financial fallouts of any cancellation of the contracts might be. The financial consequences may involve capacity charges against the rental power plants' renewed contract periods. That is why, it calls for careful scrutiny, especially of the renewed power purchase deals, which can provide important clues to dealing with any shady power contracts made during the past autocracy.

Against this backdrop, to address widespread allegations of inconsistencies/anomalies in those power deals reached with the privately run independent power plants then, the incumbent administration, in line with the HC directive, approved last week a proposal to seek legal assistance and hold deliberations as necessary so the controversial agreements inked earlier with the private power companies could be recast. Since some foreign companies are also involved in these power deals, the proposed review of the contracts cannot the done one-sidedly, the Finance Adviser Dr Salehuddin Ahmed who briefed journalists on the issue, explained. So is the need for legal support.

The government move is likely to not only help relieve the nation of some bad legacies handed down from the past autocracy, but also stop making some oligarchs richer at the expense of the state exchequer. Reportedly, the previous regime extended the rental power plants' tenure of contract three times beyond their recommended efficient operational life, thereby paying them to the tune of Tk330 billion between 2009 and 2023.​

 

[Saif]

Govt moves to curb power generation costs

In a bid to rein in soaring electricity subsidies and generation costs, the government has initiated a plan to reduce expenditure at power plants where it holds full or partial ownership, officials said. The initial focus will be on trimming operating and maintenance (O&M) costs through discussion

thefinancialexpress.com.bd

Govt moves to curb power generation costs

M Azizur Rahman
Published :
Jul 18, 2025 10:46
Updated :
Jul 18, 2025 10:46

In a bid to rein in soaring electricity subsidies and generation costs, the government has initiated a plan to reduce expenditure at power plants where it holds full or partial ownership, officials said.

The initial focus will be on trimming operating and maintenance (O&M) costs through discussions and negotiations with state-owned power companies and joint ventures in which the government has substantial stakes.

Entities under review include major state-run firms such as Bangladesh Power Development Board (BPDB), Electricity Generation Company of Bangladesh Ltd (EGCB), Northwest Power Generation Company Ltd (NWPGCL), Ashuganj Power Station Company Ltd (APSCL), and Coal Power Generation Company of Bangladesh Ltd (CPGCBL).

Joint venture companies involving state entities and foreign partners include Bangladesh China Power Company Ltd (BCPCL), Bangladesh India Friendship Power Company Ltd (BIFPCL), and RPCL-NORINCO International Power Ltd.

Officials said a committee formed by the Power Division has already recommended slashing the return on equity (ROE) of state-owned plants to around 6.0 per cent-down from the current 12 per cent.

The prevailing ROE is notably higher than global standards, a senior BPDB official told The Financial Express on Wednesday.

Additionally, the committee has proposed reducing the O&M costs of state-run plants by 20-30 per cent.

State-owned NWPGCL and APSCL are reportedly close to signing deals with the Power Division to implement these cuts, a senior official of the division under the Ministry of Power, Energy and Mineral Resources (MPEMR) said.

For joint venture plants, the committee suggested lowering the ROE to 10-12 per cent from the current range of 16-18 per cent.

These cost reduction efforts in public sector power plants are expected to contribute to the government's broader goal of cutting overall electricity generation costs by 10 per cent-a benchmark set in the national budget, according to sector insiders.

Meeting this target could help reduce the estimated Tk 110 billion subsidy currently allocated to the power sector. According to Ministry of Finance data, power subsidies currently amount to around 1.0 per cent of the country's gross domestic product (GDP).

Separately, the interim government has already taken action to reduce electricity generation costs in the private sector by lowering the service charge on high-sulfur fuel oil (HSFO) imports to 5.0 per cent from the previous 9.0 per cent for privately-owned power plants.

Back in 2011, the government first allowed a few private operators to import HSFO. Over time, most were permitted to do so with a 9.0 per cent service charge that covered transport, taxes, and evaporation losses.

Two national committees are also working to reduce generation costs in private-sector plants by renegotiating tariffs and associated charges, sources said.

These committees are expected to submit final reports soon to accelerate the government's cost-cutting drive.

The committees are headed by Dr Md Kamrul Ahsan, a retired professor of Bangladesh University of Engineering and Technology (BUET) and currently a distinguished professor at Green University of Bangladesh, and Moinul Islam Chowdhury, a retired judge of the High Court Division.​

 

[Saif]

Govt to fix tariffs for nine power plants after years of anomalies

The interim government has moved to set rates for nine large power plants that have been selling electricity to the Bangladesh Power Development Board (BPDB) without official tariff approval. However, the power plants in question are owned by the state-run entities, fully or partially. These power

thefinancialexpress.com.bd

Govt to fix tariffs for nine power plants after years of anomalies

M Azizur Rahman
Published :
Jul 21, 2025 10:18
Updated :
Jul 21, 2025 10:18

The interim government has moved to set rates for nine large power plants that have been selling electricity to the Bangladesh Power Development Board (BPDB) without official tariff approval. However, the power plants in question are owned by the state-run entities, fully or partially.

These power plants, with a combined capacity of 3,414 megawatts, were implemented during the previous Awami League government.

Despite supplying power to the national grid, their tariffs were never formally endorsed by the Cabinet Committee on Government Purchase -- a mandatory requirement for such deals, according to official sources.

Instead, the state-run Bangladesh Power Development Board (BPDB) has been buying electricity from these plants solely on the basis of power purchase agreements (PPAs) signed with the respective operators.

These deals were reportedly approved by senior government officials at the time, bypassing the necessary cabinet committee clearance, sources familiar with the matter told The Financial Express on Sunday.

The irregularities came to light during an internal audit conducted by the interim administration, which has now asked the Power Division and the BPDB to clarify how such contracts remained in effect without proper authorisation.

All nine plants began operations between 2012 and 2023. They include two major coal-fired joint ventures -- the 1,320MW Rampal plant under the Bangladesh-India Friendship Power Company Ltd (BIFPCL) and the 1,320MW RPCL-Norinco plant in Patuakhali.

Other facilities include four plants under Rural Power Company Ltd (RPCL), two by BR PowerGen Ltd, and one solar power plant under North-West Power Generation Company Ltd (NWPGCL).

The list of plants operating without cabinet-approved tariffs includes: Bangladesh India Friendship Power Company Ltd (BIFPCL)-owned 1,320MW Rampal Power Plant, RPCL-NORINCO International Power Ltd-owned 1,320MW Patuakhali Power Plant, 210MW Mymensingh Power Plant, 52.194MW Kodda Power Plant, 25.50MW Rowzan Power Plant, and 105MW Gazipur Power Plant owned by Rural Power Company Ltd (RPCL), 163MW Mirsharai Power Plant and Kodda 150MW Power Plant owned by BR PowerGen Ltd, and Sirajganj 68MW Solar Park owned by Bangladesh-China Renewable Energy Power Company Ltd.

"This is unfortunate that these [nine] power plants are selling electricity to the BPDB without approved tariffs," said Dr Muhammad Fouzul Kabir Khan, Adviser to the Ministry of Power, Energy and Mineral Resources (MPEMR), speaking to The Financial Express on Sunday.

He added that steps have now been taken to finalise and approve the tariffs.

Due to the lack of formal approval, the Ministry of Finance (MoF) has recently withheld Tk 50.56 billion in subsidies earmarked for these plants for the period from October 2024 to June 2025.

The Finance Division has instructed the Power Division to obtain approval from the Advisory Council on Public Purchase by July 2025 in order to facilitate future disbursement of subsidies.

In response, the BPDB informed the Finance Division that it had obtained consent from the Power Division for eight of the nine plants during the tenure of the previous government.

The remaining plant, Bangladesh-China Power Company Ltd, reportedly received clearance from the Cabinet Committee on Economic Affairs, the BPDB claimed.

"These are gross violations of the country's existing regulations," said Professor M Shamsul Alam, energy adviser to the Consumers Association of Bangladesh (CAB).

He called for the formation of an independent commission, headed by a retired judge, to investigate corruption and irregularities in the power and energy sector.

"Energy stakeholders must be included in such a commission," Mr Alam added, stressing the need for transparency and accountability in a sector he described as plagued by 'energy crimes'.​

 

[Saif]

Govt approves import of fertilisers, LNG cargoes, other goods

The government on Wednesday approved several major procurement proposals involving the import of fertilisers, LNG cargoes, wheat, and lentils worth Tk 28.10 billion to meet the country’s growing domestic demands. It approved separate proposals for procuring some 1.40 lakh MTs of fertiliser,

thefinancialexpress.com.bd

Govt approves import of fertilisers, LNG cargoes, other goods

UNB
Published :
Jul 23, 2025 20:57
Updated :
Jul 23, 2025 20:57

The government on Wednesday approved several major procurement proposals involving the import of fertilisers, LNG cargoes, wheat, and lentils worth Tk 28.10 billion to meet the country’s growing domestic demands.

It approved separate proposals for procuring some 1.40 lakh MTs of fertiliser, 2 cargoes of LNG, and 2.20 lakh tonnes of wheat to meet the growing demand for the country.

The approvals came from the 28th meeting of the Advisers Council Committee on Government Purchase this year held on Wednesday with Finance Adviser Dr Salehuddin Ahmed in the chair at Cabinet Division at Bangladesh Secretariat.

Of the approved eight proposals, four were from the Ministry of Agriculture, two were from the Energy and Mineral Resources Division, and one each from the Ministry of Commerce and the Ministry of Food.

Following four separate proposals from the Ministry of Agriculture, the Bangladesh Agricultural Development Corporation (BADC) will procure some 30,000 tonnes of MOP fertilizer from JSC Foreign Economic Corporation (Prodintorg), Russia with TK 1.30 billion.

The BADC will procure 30,000 tonnes of TSP fertilizer from OCP, NUTRICROPS, Morocco with around Tk 2.12 billion, the BADC will import 40,000 tonnes of DAP fertilizer from OCP, NUTRICROPS, Morocco with around Tk 3.78 billion while the BADC would import 40,000 tonnes of MOP fertilizer from Canadian Commercial Corporation (CCC) with around Tk 1.73 million.

Following two separate proposals from the Energy and Mineral Resources Division, the Petrobangla would procure one cargo LNG from the spot market through following international quotation method from M/S Gunvor Singapore Pte Ltd Singapore with around Tk 5.13 billion while the Petrobangla would import one cargo LNG from Vitol Asia Pte Ltd Singapore with around Tk 5.22 billion.

Following a proposal from the Ministry of Food, the government would procure 2.20 lakh tonnes of wheat the USA on G2G basis from Agrocorp International Pte Limited as authorized by the US Wheat Associates with around Tk 8.17 billion.

The day’s purchase committee meeting approved another proposal from the Ministry of Commerce under which the state-run Trading Corporation of Bangladesh (TCB) would procure 7,000 tonnes of lentil through following local Open Tender Method (OTM) from KBC Agro Products Private Limited, Dhaka with around Tk 643.2 million.​