[🇧🇩] Energy Security of Bangladesh

[Saif]

Merit of importing LNG from Myanmar

Bangladesh's renewed interest in importing liquefied natural gas (LNG) from neighbouring Myanmar comes at a time when the country's energy crisis has reached an alarming level. Against the backdrop of dwindling domestic gas reserves, disruptions in global supply chains and mounting pressure on indu

thefinancialexpress.com.bd

Merit of importing LNG from Myanmar

Bangladesh's renewed interest in importing liquefied natural gas (LNG) from neighbouring Myanmar comes at a time when the country's energy crisis has reached an alarming level. Against the backdrop of dwindling domestic gas reserves, disruptions in global supply chains and mounting pressure on industries and power generation, the proposal appears not only timely but also strategically prudent. If pursued with foresight and pragmatism, it could mark the beginning of a new chapter in regional energy cooperation.

What makes the proposal particularly attractive is geographic proximity. Unlike LNG shipments from the United States, Australia or Angola, which require between two and four weeks to reach Bangladesh, supplies from Myanmar could arrive within 12 hours. Even compared with imports from the Middle East, which typically take nearly a week, Myanmar offers an unmatched logistical advantage.

The urgency of finding alternative suppliers has become increasingly evident. Bangladesh's long-term LNG suppliers, QatarEnergy and OQ Trading, have curtailed deliveries by invoking force majeure following geopolitical tensions in the Middle East. Consequently, the country has been compelled to rely heavily on the volatile spot market, exposing itself to soaring prices and uncertain availability. The disruption of operations at one of the country's floating storage and regasification units (FSRUs) has only compounded the crisis, sharply reducing gas supplies to homes, power plants and industries. Electricity generation has suffered, factories have faced production disruptions and households continue to endure shortages. These developments underscore the vulnerability of an energy system that depends excessively on distant suppliers and fragile infrastructure. In this context, Myanmar presents a compelling alternative. Rich in natural gas reserves and already exporting gas to China and Thailand through pipelines, the neighbouring country possesses both resources and experiences to become a reliable energy partner. Bangladesh's proposal for importing LNG in the short term while exploring pipeline connectivity over the longer term reflects a sensible and phased approach. A pipeline, though requiring considerable investment and political commitment, could eventually provide a more economical and stable supply than seaborne LNG.

The discussions between the two governments indicate encouraging political goodwill. Myanmar has reportedly welcomed the proposal and suggested further deliberations through a joint technical committee, while Bangladesh has initiated ministerial-level engagement to move the process forward. Nevertheless, optimism must be tempered with realism. Any agreement must rest on commercially viable pricing, transparent contractual arrangements and credible guarantees of uninterrupted supply. Political instability in Myanmar and the complex regional geopolitical landscape cannot be ignored. Bangladesh should therefore regard Myanmar as an important addition to its energy portfolio rather than as a substitute for broader diversification. Ultimately, the proposal is about more than importing gas. It is about building resilience in a world where energy security has become inseparable from national security. Diversified sources, regional cooperation and long-term planning are no longer optional but essential. If handled wisely, an LNG partnership with Myanmar could help Bangladesh navigate its immediate energy crisis while laying the foundation for a more secure, flexible and sustainable energy future.​

 

[Saif]

Payment guarantee restored to lure investment in renewable power

A provision of "Payment Guarantee" for renewable-energy sector is now restored, nearly two years after it was scrapped by the interim government only to dissuade both local and foreign investors from making fresh investment, sources said. In the absence of payment guarantee, local and f

thefinancialexpress.com.bd

Payment guarantee restored to lure investment in renewable power
Stakeholders take govt step as significant for improving bankability of utility-scale projects

A provision of "Payment Guarantee" for renewable-energy sector is now restored, nearly two years after it was scrapped by the interim government only to dissuade both local and foreign investors from making fresh investment, sources said.

In the absence of payment guarantee, local and foreign banks as well as multilateral lenders shied away y from providing loans for renewable energy projects, leading to lower response in the tenders.

Many tenders on renewable-energy projects received only a few bidders during the last two years, forcing the government to extend bid document-submission deadlines repeatedly.

Now investors say as the government agreed to include the provision of payment guarantee in the bid documents, they have no risks in making investment, and getting bank loans to set up renewable-energy-based power plants will be easier for them.

Officials said the investors had long been pressing the government to restore the provision of payment guarantee so that they can secure loans to set up green power plants.

In the face of their repeated demands, Power Division in a recent letter to Bangladesh Power Development Board (BPDB) has asked for incorporating the provision of payment guarantee while inviting tenders in the future, sources said.

Contacted Friday, Golam Mortuza, Director IPP Cell-1 of BPDB, acknowledged government directives to incorporate the provision of payment guarantee again into bid documents, now that government thrust on energy search grows amid a crunch.

"We are working on it. It was a long demand from the private sector," he told The Financial Express.

Mr Mortuza said the government guarantee would help attract both local and foreign investments in the renewable-energy sector.

As the interim government had written off the guarantee and was not issuing guarantee letters, a number of solar-power projects faced setbacks in getting loans disbursed from local and foreign financiers, including the Asian Development Bank and Japan International Cooperation Agency.

Amid the stalemate, the ADB- JICA duo in a letter to then energy adviser reminded about upholding the contractual obligations, including the issuance of payment-guarantee letters in favour of the independent power producers.

Imran Chowdhury, Deputy Director of Sonagazi Solar Power Ltd, said Power Division's decision to include the payment guarantee in contractual framework is a significant step towards improving the bankability of Bangladesh's utility-scale renewable-energy projects.

"Payment security is one of the key considerations for international lenders, and this measure is expected to strengthen lender confidence and facilitate access to long-term project financing," the company man told The Financial Express.

He has suggested incorporating the provision of payment guarantee into the tender documents of BPDB's ongoing IPP-based solar projects before the bid-submission deadline to maximise the benefits of the decision.

"This would provide greater certainty to prospective bidders, encourage wider participation from experienced international project developers and IPPs, and strengthen competition," said Mr Chowdhury, also a director of Bangladesh Sustainable and Renewable Energy Association.

Stakeholders say as Bangladesh moves towards its target of 10-gigawatt renewable- energy capacity by 2030, improving project bankability will be essential to mobilise international financing and accelerate the implementation of utility-scale solar projects.

Amid the significant fall of electricity generation due to the shortage of gas and fuel oils and rising power subsidy, the new government in the recent months gave utmost importance on producing clean power.

To this end, the renewable-energy sector has been granted various facilities, including waiving import duty on equipment for clean power plants and offering tax rebate for green power consumers.

Bangladesh currently has the installed capacity to generate 1,822 megawatts of electricity from renewable sources, according to the Sustainable and Renewable Energy Development Authority (BSREA).​

 

[Saif]

Govt approves LNG cargo from Aramco Trading Singapore at $21.55 per MMBtu

Cabinet committee clears August 11-12 delivery

www.thedailystar.net

Govt approves LNG cargo from Aramco Trading Singapore at $21.55 per MMBtu

Cabinet committee clears August 11-12 delivery

Star Online Report

The Cabinet Committee on Government Purchase on Friday approved the short-term procurement of one LNG cargo from Aramco Trading Singapore Pte Ltd under a government-to-government (G2G) arrangement at $21.55 per MMBtu.

The virtual meeting was presided over by the finance and planning minister.

The meeting’s outcomes were confirmed through a press statement by Cabinet Division Deputy Secretary Mohammad Ashrafuzzaman Bhuiyan.

According to the approved proposal, the LNG cargo will be delivered under a direct purchase process between August 11 and 12.

Meanwhile, a proposal for long-term LNG -- supply spanning from 2026 to 2038 -- by Gunvor USA LLC was withdrawn by the Energy and Mineral Resources Division.​

 

[Saif]

AI can destroy repetitive jobs, but also create new job scopes

FE REPORT Artificial intelligence (AI) should be viewed primarily as a productivity tool and an opportunity to create new employment rather than simply as a threat to jobs, speakers said at a discussion in the city on Saturday. They, however, cautioned that Bangladesh could face significant emplo

thefinancialexpress.com.bd

AI can destroy repetitive jobs, but also create new job scopes
BD needs renewable energy to open its own data centre

Artificial intelligence (AI) should be viewed primarily as a productivity tool and an opportunity to create new employment rather than simply as a threat to jobs, speakers said at a discussion in the city on Saturday.

They, however, cautioned that Bangladesh could face significant employment disruptions if it fails to prepare its workforce for the rapid expansion of AI and other emerging technologies.

The discussion titled “AI & Democracy: Shaping the Future of Employment”, organised by BCAN, was held at the auditorium of the Press Institute of Bangladesh (PIB).

Imtiaz Mirza, executive director of BCAN, said Bangladesh had failed to take advantage of successive technological revolutions and was now facing another major transformation with AI.

He said the country also lacked the investment ecosystem needed to develop a semiconductor industry.

“The government should take initiatives to build an ecosystem for semiconductor investment and development,” he said.

Mr Mirza said AI had already displaced millions of programming-related jobs globally, but humans would continue to be needed to monitor, manage and supervise AI systems.

He described every crisis as a potential opportunity and said Bangladesh could turn the AI transition into an opportunity by developing the necessary skills and infrastructure.

Author and adviser to NICTF Maruf Mallick said Bangladesh needed to understand how AI would reshape employment and society rather than simply resist technological change.

He stressed the importance of preparing people and institutions for a future in which AI would increasingly influence economic activities and employment.

Presenting a paper virtually, Marzia Mithila, an architect and designer, said Bangladesh should aim to produce “AI managers” rather than remain merely AI consumers.

She urged the country to focus on designing the future, designing algorithms and designing democracy in an era increasingly shaped by artificial intelligence.

Rezaul Karim Rony, poet and thinker, said the country was now at a critical juncture and should use the AI transition to create a new generation of skilled workers instead of allowing technological disruption to deepen unemployment.

AI should be treated as a productivity tool rather than a substitute for, or competitor to, human workers, he said.

He said Bangladesh's challenge was therefore not simply to prevent AI from replacing jobs, but to ensure that workers were equipped to perform new tasks created by the technology.

He said the benefits of AI would depend on how effectively Bangladesh could combine technological advancement with creativity, adaptability, regulation and democratic institutions.

Rupam Razzaque, an IT professional and entrepreneur, said businesses should not necessarily seek to minimise employment through technology.

He said BD's biggest ICT related company currently has 1,200 employees and that the ambition should be to expand employment of a single entity to around 20,000.

Mozammel Hoque (Rebel Chowdhury), a software architect, said the fourth industrial revolution was already under way and AI was advancing at an unprecedented pace.

He said the amount of information that a person could gather over an entire lifetime centuries ago could now be processed or accessed within a single day.

“AI is still in its infancy,” he said, warning that future stages of AI development could have far greater implications for human employment.

He said artificial general intelligence (AGI), if developed to a sufficiently advanced level, could potentially replace many human functions, while artificial superintelligence (ASI) could eventually become capable of surpassing human intelligence.

However, he said the immediate challenge was already visible, as AI was increasingly affecting desk jobs and repetitive tasks.

“Repetitive work will be cut,” he said, while noting that current AI systems still lacked genuine innovation.

According to him, humans would continue to have a crucial role in innovation because innovation involves generating and evaluating multiple possible ideas before taking them into production.

He identified creativity as a key ingredient of innovation, stressing that creativity should not be understood merely as artistic or aesthetic ability.

“Every contribution is creativity,” he said, arguing that workers would need to develop the ability to think, create and adapt alongside AI.

He also stressed the importance of adaptability in the emerging labour market, saying intellectual strength alone would not be sufficient for survival in a rapidly changing technological environment.

Drawing on the principle of adaptation associated with Darwin's theory of evolution, he said those capable of adapting to changing conditions would be better positioned to survive and succeed.

Ronty Chowdhury, director of the cultural wing of BCAN, said Bangladesh currently lacked the necessary capacity, data infrastructure and policy framework to develop a competitive AI ecosystem.

He said the country needed to develop AI data centres along with the supporting energy infrastructure.

AI data centres require a huge and uninterrupted supply of electricity, he said, adding that Bangladesh currently relied heavily on conventional fuel-based energy but needed to move towards renewable energy to meet the growing power demand of AI infrastructure.

“The full ecosystem should be developed at the same time,” he said, noting that Bangladesh now had an opportunity to do so as the country was increasingly generating electricity from solar power.

He said appropriate policies could encourage investment in renewable energy and AI-related infrastructure.

According to him, international technology companies spend around US$1.0 billion to US$2.0 billion on data centres and related services for Bangladeshi consumers.

If the country could develop its own data-centre infrastructure, a significant portion of that expenditure could remain within the domestic economy.

He said Bangladesh would require around 250 megawatts of solar power, involving an estimated investment of Tk 30 billion, to support the development of AI-related data infrastructure.

A battery-based power system for AI data centres could require another Tk 100 billion, he said.

He stressed that AI data centres require uninterrupted electricity supply round the clock and therefore Bangladesh would need a reliable 24-hour power system supported by renewable energy and storage facilities.​

 

[Saif]

Don’t rush fuel import privatisation

Private-sector involvement must not jeopardise energy security.

www.thedailystar.net

Don’t rush fuel import privatisation

Any move to open up refined fuel imports needs careful scrutiny

VISUAL: STAR

The current energy crisis and increased government spending on fuel imports undoubtedly call for innovative ideas. However, those ideas should not compromise the national interest in any way or be implemented in haste. This applies to the government’s consideration of allowing private firms to import and market refined petroleum products. To be clear, we are not opposed to privatisation in general or greater private-sector participation in areas traditionally managed by state-owned entities. However, private-sector involvement should be allowed only to the extent that it does not result in market concentration, cartelisation, monopolistic practices, price manipulation, or otherwise compromise the country’s energy security.

These concerns arise because our past experience of private-sector participation in nationally important spheres, particularly in the energy and power sector, has often been disappointing. For instance, the costly capacity payments made every year to private power plants, even when they remain idle, should serve as a cautionary tale. The liquefied petroleum gas (LPG) market offers another telling example, with the Bangladesh Energy Regulatory Commission (BERC) largely failing to ensure that private companies sell at regulated prices. The syndicates in this market can even create artificial shortages and jack up prices, effectively holding the government and the nation hostage in times of crisis. These are lessons that should prompt the government to review its position with much deliberation.

Instead, what we are witnessing is a haste on the government’s part to approve the policy decision of allowing private import and marketing of refined oil. According to media reports, the BNP government first mulled the idea after receiving a proposal from Bashundhara Oil and Gas Company Ltd on May 24 in this regard. They want to directly import and market a little over 30 lakh tonnes of refined fuel per year, which is nearly half of the country’s annual demand for fuel oil. Surprisingly, within two months of receiving the proposal, the energy division sought Bangladesh Petroleum Corporation’s (BPC) opinion about it, and the committee BPC formed on July 14 to review the application had to submit its recommendation within just two days!

What’s more concerning is that the committee’s objection to the proposal was not heeded; instead, the public organisation was asked to prepare a draft “Private-Sector Refined Fuel Import, Storage, Transportation, Distribution and Marketing Policy, 2026” within just four working days and submit it to the energy division by August 10. All this happened in a regulatory environment where the requisition to fill a public school’s teachers’ vacant posts, for example, often does not elicit any action for 10 years.

So, if the government really decides to approve the draft despite warnings from experts, the opposition, and the very public entity that manages the fuel supply chain, it must at least put stringent safeguards in place. In particular, companies facing allegations of money laundering, loan default or other forms of corruption should be barred from obtaining licences to import and market strategic commodities such as refined fuel. Besides, crucial policies that would impact the country’s energy future must not be fast-tracked. The draft being prepared by BPC should be subjected to wider and adequate consultation. To solve one problem, the government must not rush into creating another.​

 

[Saif]

https://www.newagebd.net/post/country/309226/make-wise-use-of-infrastructure-for-energy-security-pm

Make wise use of infrastructure for energy security: PM
Bangladesh Sangbad Sangstha . Cox’s Bazar 09 August, 2026, 23:49

Prime minister Tarique Rahman, among others, inspects the deep-sea port facilities at Matarbari under Maheskhali in Cox’s Bazar on Sunday. | PID photo

Prime minister Tarique Rahman on Sunday stressed the need for efficient use of existing energy infrastructures, transparency and accountability in project management, regular maintenance and a long-term integrated energy plan to ensure the country’s power and energy security.

‘Alongside meeting the country’s growing electricity demand, we must diversify our energy sources. Economic viability, environmental impact and the long-term interests of the people must be given the highest priority in power generation and the operation of large-scale infrastructure,’ he said.

The prime minister made the remarks after getting a detailed briefing on the overall activities of the 1,200-megawatt Matarbari Ultra-Supercritical Coal-Fired Power Plant at Maheshkhali in Cox’s Bazar during his visit.

Tarique underscored the importance of integrated development of power, energy, deep-sea port and related industrial infrastructure centring Matarbari, saying that their planned and effective utilisation would play a significant role in ensuring energy security, accelerating industrialisation and boosting overall economic activities.

Officials concerned apprised the prime minister of the current status of the power plant, electricity generation and operational activities, production capacity, fuel supply and management, operational efficiency, maintenance, safety measures and related infrastructure as well as future development plans of the project.

The Matarbari power plant has a generation capacity of 1,200 megawatts through two 600MW units and uses modern ultra-supercritical technology.

Besides the power plant, the project includes port facilities for coal transportation, transmission lines, access roads and other supporting infrastructure. The project has been implemented with loan assistance from the Japan International Cooperation Agency.

After the briefing, the prime minister visited different facilities of the project and inspected several proposed project sites. He planted a neem sapling in the project area.

Home minister Salahuddin Ahmed, power, energy and mineral resources minister Iqbal Hassan Mahmood Tuku, finance minister Amir Khosru Mahmud Chowdhury, state minister for power and energy Aninda Islam Amit, prime minister’s defence adviser retired Brigadier General AKM Shamsul Islam, additional press secretary Atikur Rahman Ruman, special political secretary Belayet Hossain Mridha and other senior officials accompanied the prime minister.​

 

[Saif]

https://www.newagebd.net/post/editorial/309207/vested-interests-must-not-sabotage-energy-sector

Vested interests must not sabotage energy sector

THE remark of the prime minister, Tarique Rahman, that a vested group is out to ‘destabilise the energy and power sector’ warrants further explanation and appropriate action. The prime minister made the remark at a programme on August 8, adding that the vested quarter that had benefited from the fallen Awami League-ear policies and programmes has remained active. It is true that the Bangladesh Nationalist Party government, formed in February, has inherited a fragile energy and power sector and the country is now paying the price for policies that were designed to benefit particular groups. Driven largely by the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010, the Awami League government pursued a lopsided development of the energy sector. The law contained an indemnity clause that prevented any contract or procurement decision from being legally challenged in court. A vested quarter, as energy experts and investigative reports have repeatedly pointed out, exploited the powers and entered into ‘power deals’ with private power producers that helped to channel public money into private pockets while providing little benefits for the public.

In 15 years, the installed power generation capacity increased to 29,593MW although the actual generation remained less than half of the installed capacity. The consequence of such a huge overcapacity has been a substantial drain on public finances through ‘capacity payments’ to which private producers are entitled regardless of whether they generated electricity. Private power producers reportedly received around Tk 130,000 crore in capacity payments in the period. What further exposes the flaws in the quick enhancement measures is that the focus almost exclusively remained on increasing installed generation capacity, neglecting distribution and transmission networks and fuel supplies. There was, moreover, little meaningful effort to promote renewable energy, domestic gas exploration or to secure long-term bilateral agreements with gas producing countries. All of this is now imposing a heavy burden on the people and the public exchequer. An acute gas shortage and severe power outages have gripped the country, causing widespread sufferings for households and businesses alike, threatening the economy. It is welcome that the prime minister has acknowledged the sufferings of the public and the businesses. But, acknowledgement alone will not resolve the crisis; only sustained and effective action will.

Given the mechanisms that channelled public money into private pockets, it is very much possible that vested quarters will try to exploit and destabilise the sector. The authorities must, therefore, identify the vested quarters and hold them to account. While the government must take immediate short-term measures to address the ongoing crisis and protect the public and businesses, it must also, on consultation with experts and stakeholders, develop a comprehensive and long-term plan to ensure energy security.​