[🇧🇩] Energy Security of Bangladesh

[Saif]

Govt's budget and policy directions fall short of energy transition expectations

The interim government appears to be drifting from its political pledge to achieve the 'Three Zeros'--zero poverty, zero emissions, and zero unemployment--in the national budget for FY2025-26, the Centre for Policy Dialogue (CPD) said on Thursday. Speaking at a dialogue, held in Dhaka, the CPD ana

thefinancialexpress.com.bd

Govt's budget and policy directions fall short of energy transition expectations
Speakers at CPD dialogue call for ensuing uninterrupted power supply, future energy security

FE REPORT
Published :
Jun 27, 2025 01:02
Updated :
Jun 27, 2025 01:02

The interim government appears to be drifting from its political pledge to achieve the 'Three Zeros'--zero poverty, zero emissions, and zero unemployment--in the national budget for FY2025-26, the Centre for Policy Dialogue (CPD) said on Thursday.

Speaking at a dialogue, held in Dhaka, the CPD analysts expressed their concerns that allocations and policy directions in the power and energy sector fall short of aligning with the government's stated commitment to energy-transition and climate goals.

Speakers at the dialogue also called for stronger policy coherence, transparent planning, and a clear roadmap to support the country's energy transition goals and industrial sustainability.

At the event titled 'Power and Energy Sector in the National Budget for FY2025-26: Reflections on the Priorities for Energy Transition', the CPD shared data showing that the Bangladesh Power Development Board (BPDB) remains a 'heavily loss-making' entity.

The state-owned BPDB requires a staggering Tk370 billion in subsidies in FY2025-26, which accounts for 41 per cent of the national subsidy allocations, it mentioned.

In contrast, the Bangladesh Petroleum Corporation (BPC), which made a profit of Tk 20.50 billion in FY2024-25, is expected to see a profit shrink to Tk 6.15 billion in the upcoming fiscal.

According to the CDP, the amount of subsidies on import of liquefied natural gas (LNG) surged to Tk 90 billion, Tk 60 billion up from the previous year.

CPD's Research Director Dr Khondaker Golam Moazzem moderated the dialogue, and its Senior Research Associate Helen Mashiyat Preoty delivered the keynote presentation at the programme.

The presentation stated that Tk 225.20 billion has been allocated for the Ministry of Power Energy and Mineral Resources (MoPEMR) in the FY2025-26, which is 0.8 per cent lower than that of the previous year.

The share of such allocation in the total national budget also fell to 2.9 per cent, down from 3.1 per cent in FY2024-25, it said, mentioning development expenditures declined notably while operational costs increased.

The CPD flagged several worrying trends, including stagnation in renewable energy initiatives and inefficient fossil fuel dependency.

Although no new fossil fuel-based generation projects were launched, overall capacity continues to rise, even though the actual electricity supply remained inadequate.

On the renewable front, 37 Letters of Intent for solar power projects were cancelled, and only three public projects with a combined capacity of 108 MW remain in the pipeline, according to the presentation.

The dialogue also underscored the need for a growing disconnect between fiscal actions and political ambitions, citing delays in revising strategic documents such as the Integrated Energy and Power Master Plan (IEPMP), the Perspective Plan, and the Mujib Climate Prosperity Plan (MCPP).

As a result, the government's 'Three Zeros' goal now risks slipping into what CPD dubbed '2.5 Zeros'.

Energy expert Professor Dr M Shamsul Alam, Adviser to the Consumers Association of Bangladesh (CAB), criticised the continued rise in fuel prices despite the subsidy claims.

"The government says it is enhancing energy security, but the situation remains unchanged," he said.

He also alleged that the country's increased dependence on fuel import, which he termed a legacy of the previous government's 'looting', is continuing under the current administration without meaningful corrective measures.

Director of the BGMEA Mr Faisal Samad, urged the CPD to assess the impact of power disruptions on industry productivity and costs.

"We need to engage with the Power and Energy Adviser and the Chief Adviser to devise a strategic action plan for ensuring smooth industrial operations at least until the upcoming election," he said.

He also stressed the need for a short-term resolution within the next 30 to 45 days.

Echoing similar concerns, Director of BTMA Engr. Razeeb Haider raised his concern over the country's growing energy vulnerability.

"We are overly dependent on gas from Bibiyana. What will happen if it underperforms? There are no clear answers on offshore gas imports or the transmission of gas from Bhola to Dhaka," he questioned.

The national budget lacks any clarity to this effect, he lamented.

Energy analyst Mr Monower Mostafa said the allocations for power and energy sector should have better reflected the 'Three Zeros--particularly the goal of zero carbon emissions.

"This sector is the largest emitter, yet no tangible steps were visible in the budget to engage manufacturers or reduce the carbon footprint," he said.

Mr Md. Akhter Hossain Apurbo, Vice-President of BKMEA highlighted the plight of the ready-made garment (RMG) sector due to energy supply disruptions.

"Despite paying high prices for gas and electricity, we are facing frequent outages that disrupt fabric production in Savar, Gazipur, and Narayanganj. We urge the government to ensure uninterrupted supply at a reasonable cost," he said.​

 

[Saif]

Chevron to revive $90m gas compression project

After a year-long standstill, Chevron Bangladesh is set to resume its Jalalabad Compression Project, following the settlement of overdue payments by state-run Petrobangla. The move signals renewed momentum in Chevron's investment plans to bolster Bangladesh's domestic gas output at a time of growi

thefinancialexpress.com.bd

Chevron to revive $90m gas compression project

M Azizur Rahman
Published :
Jun 27, 2025 09:01
Updated :
Jun 27, 2025 09:01

After a year-long standstill, Chevron Bangladesh is set to resume its Jalalabad Compression Project, following the settlement of overdue payments by state-run Petrobangla.

The move signals renewed momentum in Chevron's investment plans to bolster Bangladesh's domestic gas output at a time of growing energy demand and depleting reserves.

"Chevron Bangladesh President Eric M Walker conveyed the company's intent in a recent meeting with me," Petrobangla Chairman Md Rezanur Rahman told The Financial Express Thursday.

He (Mr Walker) formally confirmed it in a letter dated June 22 to Petrobangla's Director (finance) AKM Mizanur Rahman.

The US energy giant plans to invest between $80 million and $90 million to complete the project, which is expected to help arrest the ongoing decline in gas production from the Jalalabad field, said the finance director.

Chevron Bangladesh, a subsidiary of US energy major Chevron, had earlier stalled the Jalalabad Compression Project due to unpaid dues by Petrobangla, which had reached as high as $280 million.

The project aims to enhance gas extraction from the Jalalabad gas field, potentially unlocking an additional 352 billion cubic feet (Bcf) of gas, according to earlier Chevron estimates.

In his June 22 letter, Mr Walker acknowledged Petrobangla's payment of the arrears in April as a "positive outcome" and cited it as the reason for resuming the project.

He, however, noted that continued work on the project will depend on Petrobangla staying current on its monthly gas and condensate payments, and settling outstanding late payment interest, amounting to around $25-26 million, by September 30, 2025.

Petrobangla said it expects to pay the interest by July.

Petrobangla had requested Chevron in April to resume the investment, after clearing the dues and committing to a payment schedule.

The US company had previously deferred the project in April 2024, demanding full repayment of arrears before proceeding.

Meanwhile, Chevron has a separate $500 million investment proposal pending with Petrobangla. It seeks rights to explore Block-11 and expand its reach over Block-12 in the gas-rich Surma Basin in northeastern Bangladesh.

The company aims to discover fresh gas supplies to meet the country's growing energy needs, leveraging its existing Bibiyana gas processing infrastructure to fast-track production if discoveries are made.

Chevron is already the largest natural gas producer in Bangladesh, supplying around 1.08 billion cubic feet per day (Bcf/d) from its three onshore fields-Bibiyana, Jalalabad, and Moulavi Bazar-located in blocks 12, 13, and 14.

From its recently drilled BY-28 well in the Bibiyana field alone, it currently supplies around 40,000 Mcf/d of gas into the national grid.

A few years ago, Petrobangla had allowed Chevron to expand its operational area by granting access to a 60 sq km 'flank' zone north of the Bibiyana field.

Chevron subsequently invested $150 million in drilling the BY-27 and BY-28 wells.

According to sources familiar with the matter, if new gas reserves are discovered in Block-11 or the extended area of Block-12, Chevron can swiftly ramp up production, potentially reaching up to 1.35 Bcf/d, using its existing processing facilities.

Petrobangla has yet to formally approve Chevron's broader exploration and investment plans, but energy officials suggest the successful resolution of the arrears dispute may pave the way for deeper collaboration.​

 

[Saif]

Bangladesh trapped into fossil fuel use

After two decades from today Bangladesh will still continue to substantially depend on fossil fuels for energy, with nearly 10,000 MW of the installed power generation capacity in 2045 directly relying on gas, coal, and liquid oil.

www.newagebd.net

Bangladesh trapped into fossil fuel use
Emran Hossain 28 June, 2025, 00:29

After two decades from today Bangladesh will still continue to substantially depend on fossil fuels for energy, with nearly 10,000 MW of the installed power generation capacity in 2045 directly relying on gas, coal, and liquid oil.

The actual fossil fuel dependence in 2045, however, will be far higher because some of the installed capacities in that year will be disguised as clean energy, a definition that replaced renewable energy in the Integrated Energy and Power Master Plan in 2023, introducing technologies yet in infancy but promises to make coal and gas cleaner.

By 2041, the installed power generation capacity in Bangladesh will exceed 60,000 MW, the IEPMP said, stating that 40 per cent of the capacity will be based on clean technology, which energy expert terms as ‘green washing’.

Bangladesh’s plan about the fossil fuel reliance reflects the global admiration for development using dirty energy, which led to a 60 per cent increase in carbon-dioxide emissions from energy and industry sectors since the United Nations Framework Convention on Climate Change was signed in 1992.

‘Perhaps the most interesting aspect of such aggressive fossil fuel expansion is the role foreign investors played behind it,’ said Sharif Jamil, head of Waterkeepers Bangladesh, a nongovernmental and non-profit body dedicated to the protection of water bodies and the restoration of water ecosystems in the country.

The foreign investments in Bangladesh included foreign direct investments and investment from multilateral development banks, which came as part of a deep global conspiracy involving fossil fuel lobbies, said Sharif Jamil.

While destroying Bangladesh’s renewable energy potentials, he said, the investments created a market from where Bangladesh would have no escape for decades.

‘The business model at work is rather brutal where investors profit from destroying economies and environments of third countries,’ said Sharif, explaining that the investors mine fossil fuels in third countries and burn them in others for profits.

‘Bangladesh has turned into a milking cow, always depending on others for energy,’ he said.

Over the past two decades, energy experts said, major power and energy sector plans were penned with help from by the Japan International Cooperation Agency and the Asian Development Bank. Japan provided money and technical support in formulating Bangladesh’s past four power sector master plans since 2005, each invariably promoting fossil fuel while undermining renewable energy potentials.

The ADB, on the other hand, was involved in energy-related plans involving $2 billion over decades, energy experts said.

Bangladesh’s current installed power generation capacity of 27,426 MW, overwhelmingly relying on imported fossil fuel, is the outcome of decades of the energy plans. Only about 4 per cent of the installed generation capacity is renewable energy dependent.

The immediate past authoritarian Awami League government, which was notorious for its widespread human rights violation, built the huge fossil fuel fleet with steady investments from its harshest critics, overseeing a sixfold increase in the installed power generation capacity between 2009 and 2024.

The power projects awarded during the AL era almost always avoided competitions and with unequal power purchase deals that drained foreign currency reserve.

The one hundred per cent electrification project, which mainly involved an expansion of the national grid with funding from development partners and multilateral development banks, in fact, replaced rooftop solar initiatives in remote areas, which took years to build.

‘We have gradually become energy colonies of some countries, whose investment interests determined our energy choices, though they meant us no benefits,’ said Hasan Mehedi, member secretary, Bangladesh Working Group on Ecology and Development, a platform of green activists.

The 1,496MW coal-based Adani power plant is the largest single power plant to remain in operation through 2045, earning a return six times of its initial investment.

Another 5,000 MW of existing coal capacity will remain in operation through 2050, the time by when many countries promise to achieve net zero emissions.

The coal-fired power plants in Bangladesh include 1,224MW Banshkhali power plant, 307MW Barishal power plant, 1,234MW Rampal power plant, 1,244MW Payra power plant and 1,150MW Matarbari power plant.

Of the existing gas-based power plants, over 2,500 MW will remain in operation through 2048. The power plants include two Meghnaghat power plants of 583 MW and 584 MW capacity, 400MW Ashuganj power plant, 230MW Sylhet power plant, Bibiyana power plants of 400 MW and 383 MW, and 260MW Ghorashal power plant.

The IEPMP projected a very ambitious economic growth between 2019 and 2050, justifying the need to aggressively increase energy consumption to power the growth.

The IEPMP noted that the ‘in-between scenario of growth’, among three projected scenarios, would necessitate about a fivefold gas and coal consumption and a sevenfold oil consumption.

A good portion of the gas demand will be met through the import of liquefied natural gas.

The IEPMP plans to increase coal consumption through the 2030s before introducing ammonia-cofiring to curtail greenhouse gas emissions in coal power plants.

Gas-fired power plants, on the other hand, will witness hydrogen co-firing in 2037, said the IEPMP.

The co-firings will take years to eventually replace the fossil fuel completely, obviously depending on the economy’s capacity to afford these highly expensive technologies, energy experts said.

The co-firings in most cases are not clean and emit carbon.

The IEMPM also promotes carbon capture and storage technology to reduce greenhouse gas emissions, though experts held it among false solutions, invented to linger coal consumption.

According to a Center for Policy Dialogue analysis of the IEPMP, renewable energy would not constitute even half of the clean energy target by 2041, which would be 40 per cent of the 61,000MW installed power generation capacity.

Clean energy in the IEPMP accounts for 18 per cent of the installed generation capacity to be achieved in 2030. Less than 6 per cent or 1,726 MW will come from renewable energy. The installed power generation capacity in 2030 will be 40,000 MW.

By 2050, Bangladesh installed power generation capacity is expected to reach 90,000 MW.​

Related News

 

[Saif]

Rooftop solar: Caution before commitment

In what appears to be an attempt to fast-track renewable energy adoption, Chief Adviser Professor Muhammad Yunus recently directed the installation of rooftop solar panels on all government buildings including educational institutions and hospitals. The move is meant to go hand in hand with Banglad

thefinancialexpress.com.bd

Rooftop solar: Caution before commitment

Published :
Jun 28, 2025 21:20
Updated :
Jun 28, 2025 21:20

In what appears to be an attempt to fast-track renewable energy adoption, Chief Adviser Professor Muhammad Yunus recently directed the installation of rooftop solar panels on all government buildings including educational institutions and hospitals. The move is meant to go hand in hand with Bangladesh's Renewable Energy Policy 2025 which targets sourcing 20 per cent of electricity demand from renewables by 2030. As per the latest IRENA report, Bangladesh remains significantly behind its regional peers in solar electricity generation, with only 5.6 per cent of its power coming from solar, in contrast to 24 per cent in India, 17.16 per cent in Pakistan and 39.7 per cent in Sri Lanka. To meet upcoming target, tenders for 55 land-based solar plants have already been floated, but their full implementation could take until 2028. Hence, the government is now looking to rooftop spaces as a more immediate solution.

There are, however, significant doubts over the practicality and efficacy of this large-scale rooftop solar rollout. First off, the claim that 5.6 per cent of national electricity comes from solar power needs further investigation. It is plausible that this figure is indicative of installed capacity rather than actual output, which may be much lower given that many rooftop units stopped functioning soon after installation. Some high-rise buildings installed solar systems only to meet RAJUK's compliance requirements, and it is doubtful whether these systems are operational or connected to the grid in any meaningful way. Before allocating resources to this initiative, policymakers must distinguish between mere installation and reliable energy generation, particularly in a country where public infrastructure projects often neglect long-term maintenance.

Implementing solar panels across all government buildings would require an enormous investment, possibly running into thousands of crore taka. Without proper planning, this could turn into a massive misallocation of public funds. There is a real risk that many of these panels would exist only on paper, much like the proverbial cow that exists in the book but not in the shed. Government hospitals, in particular, need uninterrupted and stable electricity to run life-saving equipment. Poorly installed systems, equipment failures or even overcast skies during the rainy season could damage sensitive medical devices and endanger lives. Similarly, schools and colleges that are already struggling with limited resources may end up with faulty or inefficient solar systems that become long-term financial burdens. The idea of public-private partnership, where private companies install and maintain systems out of their own commercial interest, appears promising at first glance, but previous experiences with such arrangements do not inspire much confidence. The government must also assess whether older buildings can bear the added weight of solar panels, and whether institutions in shaded or congested areas get enough sunlight to justify the cost. A nationwide rollout without checking these basic facts would be irresponsible, no matter how noble the intentions behind it.

Before moving ahead, the government must undertake a thorough feasibility study to examine whether a nationwide rooftop solar rollout is truly worth the investment. As part of this, it must assess the existing installations, especially those installed under the RAJUK directive, to see how many are still functioning, how much electricity they actually generate and what maintenance issues have arisen over time. The study must also evaluate costs, technical challenges and the potential for grid integration across different categories of buildings. Only after establishing the project's practical benefits and sustainability should large-scale implementation proceed. There is no denying that renewable energy is the way of the future, but rushing in without proper groundwork could easily turn a well-intentioned plan into a costly misadventure.​

 

[Saif]

Govt plans to launch onshore bidding after 28 years

The interim government is preparing to offer several onshore blocks in hilly regions to international oil companies (IOCs) under a proposed production sharing contract (PSC), aiming to enhance domestic natural gas production amid rising demand. "We are planning to offer onshore Block-22A and Block

thefinancialexpress.com.bd

Boosting Gas Output
Govt plans to launch onshore bidding after 28 years

FE Report
Published :
Jun 28, 2025 23:37
Updated :
Jun 28, 2025 23:37

The interim government is preparing to offer several onshore blocks in hilly regions to international oil companies (IOCs) under a proposed production sharing contract (PSC), aiming to enhance domestic natural gas production amid rising demand.

"We are planning to offer onshore Block-22A and Block-22B, along with several other hilly onshore blocks," Petrobangla Chairman Md Rezanur Rahman told The Financial Express on Saturday.

He said the long-anticipated onshore bidding round is likely to be launched within the next two months.

The Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) is currently reviewing a draft of the new Model Production Sharing Contract (MPSC), which was prepared and submitted by state-run Petrobangla.

The new MPSC aims to attract foreign investors by offering more competitive terms, developed in consultation with global energy consultancy Wood Mackenzie.

However, Mr Rahman did not disclose the exact number of blocks to be offered or specific pricing details.

Petrobangla's move comes nearly three decades after the last onshore bidding round, as the government seeks to ramp up hydrocarbon exploration in underexplored hilly regions to meet the surging demand for natural gas in industries, power plants, and other key sectors.

One major update in the new MPSC is its pricing mechanism. Under the proposed terms, the gas purchase price would be linked to 8 per cent of the dated Brent crude average over three months, with a price cap to mitigate extreme volatility.

A Petrobangla official said this could set the gas price at around $5.00 per million British thermal units (MMBtu), based on current Brent crude assumptions.

This price would align more closely with the cost of imported liquefied natural gas (LNG), which the country increasingly relies on due to stagnating domestic output.

In comparison, the 1997 MPSC linked gas pricing to high sulphur fuel oil (HSFO), with a fixed floor and ceiling. Under that structure, US-based Chevron currently receives $2.76 per MMBtu and Singapore's KrisEnergy receives $2.31 per MMBtu.

Petrobangla also purchases gas from its state-owned subsidiaries.

It buys gas at Tk 28 per Mcf (1,000 cubic feet) from Sylhet Gas Fields Ltd (SGFL) and Bangladesh Gas Fields Company Ltd (BGFCL), and at Tk 112 per Mcf from Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX).

By contrast, LNG from long-term suppliers QatarEnergy and OQ Trading International cost $10.66 and $10.09 per MMBtu, respectively, over the first seven months of the current fiscal year.

Officials said that Petrobangla is also working to harmonise exploration benefits across contracts to better attract IOCs, after the offshore bidding round in 2023 failed to draw interest.

That round offered 24 offshore blocks under terms that priced gas at 10 per cent of dated Brent, or around $7.08 per MMBtu based on current prices.

The last onshore bidding round in 1997 saw the award of four blocks -- Block-5, Block-7, Block-9, and Block-10.

At present, four IOCs are engaged in exploration activities in Bangladesh.

Chevron operates gas fields under Blocks 12, 13, and 14. KrisEnergy produces gas from the Bangora field in Block-9. ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL) are jointly exploring shallow-water blocks SS-04 and SS-09.

To meet the shortfall, Bangladesh imports lean LNG from long-term partners RasGas of Qatar and Oman Trading International (OTI), as well as from the spot market.

Currently, the country's total gas output, including re-gasified LNG, stands at around 2,883 million cubic feet per day (mmcfd), against a demand of more than 4,000 mmcfd.​

 

[Saif]

BD pays most part off, avoids $20m penalty

In a major financial manoeuvre, the interim government has paid nearly all outstanding dues to India's Adani Power, securing a waiver of US$20 million in late payment interest. The Bangladesh Power Development Board (BPDB) confirmed a record monthly payment of $437 million in June to settle ar

thefinancialexpress.com.bd

ADANI’S OUTSTANDING BILLS
BD pays most part off, avoids $20m penalty

M Azizur Rahman
Published :
Jun 30, 2025 00:08
Updated :
Jun 30, 2025 00:08

In a major financial manoeuvre, the interim government has paid nearly all outstanding dues to India's Adani Power, securing a waiver of US$20 million in late payment interest.

The Bangladesh Power Development Board (BPDB) confirmed a record monthly payment of $437 million in June to settle arrears with the Indian conglomerate.

This is the highest single-month payment made to Adani since Bangladesh began importing electricity from its Jharkhand-based Godda power plant in April 2023.

"We paid around US$437 million this month (June) to Adani to reduce the outstanding overdue payment," Bangladesh Power Development Board (BPDB) Chairman Md Rezaul Karim told The Financial Express on Sunday.

He expressed hope that the remaining overdue amount would be cleared soon. Adani has responded positively to the payment and has waived the late interest charges, he added.

With this payment, Bangladesh has so far remitted approximately US$1.5 billion to Adani Power Jharkhand Ltd (APJL), though a dispute remains over the exact amount still owed.

BPDB officials estimate the remaining dues at US$193 million, while Adani claims the figure is closer to US$340 million, highlighting ongoing disagreements over coal pricing formulas and capacity charges, according to sources familiar with the backlog.

Officials attribute the discrepancy between Adani's and BPDB's figures to differing coal pricing formulas and capacity charge calculations.

Despite the variance, Adani has agreed to waive US$20 million in interest, signalling a willingness to move forward as both sides continue negotiations.

Adani has so far received overdue payments until March, officials noted.

The company expects the Bangladesh government to clear the remaining dues by September and maintain regular payments going forward.

The payments come amid mounting pressure on Bangladesh's foreign exchange reserves and heightened scrutiny over the cost structure of imported electricity.

Adani Power, which operates the 1,496 MW Godda Ultra Supercritical Thermal Power Plant in Jharkhand, began supplying power to Bangladesh in April 2023.

Before the recent payments, unpaid bills had reportedly ballooned to nearly US$900 million, according to Adani's estimates.

The power purchase from the APJL plant has become a much-debated issue in Bangladesh since power flow began, under what many critics see as an overrated deal signed by the now-deposed Awami League government.

After power deliveries began, the BPDB requested revisions to the power purchase agreement (PPA) with Adani, particularly concerning electricity imports from the Jharkhand plant, but without success so far.

The original deal, signed in November 2017 for a 25-year term, includes a dedicated 400kV transmission line linking the Indian plant to Bangladesh's national grid.

The agreement has come under fire for contentious issues such as coal pricing, capacity payments, tax waivers, and other associated costs.

Adani shut down one of its two power units in Jharkhand on November 1 last year, halving cross-border electricity supply to Bangladesh due to a payment backlog of around US$850 million.

The company also threatened to halt the remaining unit from November 7 last unless dues were cleared.

However, Adani reversed its decision after BPDB paid US$170 million by opening a letter of credit (LC) through Bangladesh Krishi Bank.

Sources said the original agreement has drawn criticism for its coal pricing formula, which ties costs to volatile international benchmarks and includes high freight charges due to Adani's coal sourcing from distant suppliers like Australia.

A technical committee formed by Bangladesh's interim government has flagged these terms as disproportionately favourable to Adani, especially compared to other coal-based plants such as Payra.

Despite the disputes, both sides are now engaged in negotiations to reconcile differences.

Adani has expressed a willingness to revisit the pricing formula once all outstanding payments are settled, sources said.

The interim government, led by Nobel laureate Muhammad Yunus, has also launched a broader review of foreign power deals signed under the previous administration.

The Adani agreement, Bangladesh's single largest energy deal with an Indian investor, is under particular scrutiny for its long-term cost implications and lack of transparency.​

 

[Saif]

BD risks losing billions in Chinese RE investments

The Centre for Policy Dialogue (CPD) has cautioned that Bangladesh could lose billions in Chinese renewable-energy investments unless immediate steps are taken to streamline regulations and stabilise the investment climate. This warning came during the third Bangladesh-China Renewable Energy For

thefinancialexpress.com.bd

BD risks losing billions in Chinese RE investments
Says CPD at the Bangladesh-China Renewable Energy Forum

FE REPORT
Published :
Jul 01, 2025 00:05
Updated :
Jul 01, 2025 00:05

The Centre for Policy Dialogue (CPD) organised the 3rd Bangladesh-China Renewable Energy Forum dialogue titled 'Recent Challenges for Chinese Overseas Investment in Bangladesh's Renewable Energy Sector: Way Forward' at a city hotel on Monday. CPD Research Director Dr Khondaker Golam Moazzem and Programme Associate Abrar Ahammed Bhuiyan presented the keynote paper. — Focus Bangla

The Centre for Policy Dialogue (CPD) has cautioned that Bangladesh could lose billions in Chinese renewable-energy investments unless immediate steps are taken to streamline regulations and stabilise the investment climate.

This warning came during the third Bangladesh-China Renewable Energy Forum, held in the capital on Monday.

At the event, CPD researchers Dr Khondaker Golam Moazzem and Abrar Ahammed Bhuiyan revealed that the current policy landscape is proving increasingly inhospitable to foreign investors, particularly those from China, who have emerged as the largest contributors to foreign direct investment (FDI) in Bangladesh's renewable energy.

The CPD study highlighted a number of systemic challenges, including sluggish bureaucratic procedures, policy inconsistencies, unreliable digital services, and inadequate institutional support-all of which are deterring investment even before projects break ground.

A major blow to investor confidence, the researchers said, was the government's sudden cancellation of 31 solar power initiatives despite having issued Letters of Intent (LoIs).

The affected projects, totalling an estimated 3,300 megawatts and attracting prospective investments of around USD 6 billion, had already seen preliminary commitments of about USD 300 million from Chinese firms for land acquisition and groundwork. With these developments now stalled, investors face significant financial setbacks and a loss of trust in the country's investment reliability.

Representing the Chinese business community, Han Kun, President of the Chinese Enterprises Association in Bangladesh, voiced serious concerns about retroactive changes to power tariffs. He cited examples of operational plants-such as those in Patuakhali and Barishal-that received directives to alter the pricing structures agreed upon in signed contracts. "For investors, learning that key terms will be revised after construction is deeply unsettling," Han remarked. "Such unpredictability sends a strong deterrent signal to future financiers."

He further mentioned instances where payments were withheld or arbitrarily reduced-such as a USD 1.45 million deduction from a Chinese-funded project for an alleged delay in performance bond submission, despite no such penalty clause in the original agreement. In another case, over USD 200 million owed to the 1320 MW SSI plant remains unpaid.

CPD's analysis, which evaluated Bangladesh's investor facilitation framework against the United Nations Conference on Trade and Development (UNCTAD) Global Action Menu, pointed to multiple flaws across different tiers.

At the national level, abrupt rule changes and ineffective enforcement of bilateral treaties were cited. At the intermediate level, the report flagged non-transparent procurement procedures and land-related complications. On the ground, cumbersome documentation, inconsistent digital portals, and inadequate multilingual support-particularly in English and Chinese-were found to be hampering investor engagement.

Speakers at the forum also called attention to missed opportunities in sectors such as rooftop solar and merchant power generation. Despite the government's emphasis on expanding clean energy, limitations on rooftop capacity and the absence of a structured framework for merchant power projects are curbing investor interest.

Wang Weiquan of the Chinese Renewable Energy Industries Association attributed China's success in attracting renewable investment to policy consistency, fixed tariffs, and guaranteed off-take mechanisms. Bangladesh, he noted, lacks similar enabling conditions.

Md Shahidur Rahman, Bangladesh country head for Jinko Solar, emphasised that in many countries, governments help secure land for solar facilities-something Bangladesh has yet to do effectively. He also warned about the proliferation of low-quality, unauthorised solar panels entering the market, undermining industry standards.

SK Md Ruhul Amin, representing Chint Solar, questioned the rationale behind the cancelled LoIs, which the government claims were scrapped due to corruption. "We still haven't been informed where exactly the alleged irregularities occurred," he said. "We followed all formal steps, from land purchase to fund transfers, yet we're left without clarity or resolution."

Masudur Rahim, CEO of Omera Renewable Energy Ltd, highlighted gaps in the existing tender system-particularly the absence of implementation agreements, lack of payment security, and inconsistent tariff policies, which he said undermine confidence in long-term investment.

The CPD urged immediate reforms, including a centralised digital platform for all business processes, simplified and unified licensing procedures, and the removal of restrictive caps on rooftop installations. The think tank also recommended offering alternative projects or compensation to investors impacted by cancelled agreements, along with the creation of a formal grievance redress mechanism.

Dr Moazzem stressed the urgency of establishing a stable and transparent investment regime. "As global momentum for clean energy accelerates, Bangladesh must make itself a more predictable and investor-friendly destination-or risk falling behind in the race for sustainable development."​

 

[Saif]

Bangladesh clears Adani arrears, ‘settles’ issues in power purchase agreement

Bangladesh has resolved its payment dispute with India’s Adani Power, clearing overdue bills and removing uncertainty over power supply from the company’s Jharkhand-based plant. A PTI report citing New Delhi sources reveals that Bangladesh made a record single payment of $437 million i

thefinancialexpress.com.bd

Bangladesh clears Adani arrears, ‘settles’ issues in power purchase agreement

bdnews24.com
Published :
Jul 01, 2025 23:12
Updated :
Jul 01, 2025 23:12

Bangladesh has resolved its payment dispute with India’s Adani Power, clearing overdue bills and removing uncertainty over power supply from the company’s Jharkhand-based plant.

A PTI report citing New Delhi sources reveals that Bangladesh made a record single payment of $437 million in June, settling past arrears, transmission charges, and all issues related to the power purchase agreement (PPA).

Bangladesh now has no pending dues. In addition, it has issued a letter of credit (LC) equivalent to two months’ worth of bills, along with a sovereign guarantee covering all outstanding amounts.

With the financial issues settled, the Bangladesh Power Development Board (BPDB) has formally requested Adani Power to continue supplying electricity from both units of its Jharkhand plant at the contracted rate.​

 

[Saif]

Eastern Refinery's second unit to be built with govt funding

BPC plans two more refineries in Matarbari and Payra

www.thedailystar.net

Eastern Refinery's second unit to be built with govt funding
BPC plans two more refineries in Matarbari and Payra

The government has finally decided to construct Eastern Refinery Limited (ERL) Unit-2 with state funding, moving away from its earlier plan of seeking foreign investment.

Besides, the Bangladesh Petroleum Corporation (BPC) has taken up plans to establish two more refineries in Matarbari and Payra.

BPC Chairman Md Amin Ul Ahsan shared the information at a press conference held at the ERL premises in Chattogram yesterday afternoon.

The press conference was arranged to celebrate a new record by ERL, which refined 1.535 million tonnes of crude oil in the recently concluded 2024-25 fiscal year.

ERL Managing Director Md Sharif Hasnat presented the written statement at the event.

Also present were ERL Board Chairman and Additional Secretary to the Ministry of Home Affairs Nasimul Ghani, BPC Director (Operations and Commercial) AKM Azadur Rahman, and BPC Secretary Shahina Sultana.

Speaking about ERL Unit-2, the BPC chairman said the corporation will provide $1.5 million in funding for the project, while the rest will be financed by the government through annual budget allocations.

"Once the funding is secured, we will move forward with the DPP (Development Project Proposal)."

ERL Board Chairman Nasimul Ghani said the preliminary groundwork for the ERL Unit-2 project has already been prepared.

"Construction will begin as soon as the funds are available."

On the new refinery projects, BPC Chairman Amin Ul Ahsan said foreign investment is being sought for the refineries planned in Matarbari and Payra.

The Matarbari refinery is expected to have a production capacity of one million tonnes.

Highlighting the global reluctance to invest in fossil fuels, he said export facilities will be included in the Matarbari refinery plan to attract foreign investors.

"We hope to find interested investors," he added.​

 

[Saif]

Gas crisis deepens: Industries wait indefinitely for connections

Lantabur Group has invested Tk 7 billion to establish a yarn factory in Trishal, Mymensingh. The construction was completed six months ago, but the factory remains non-operational due to no gas connection—despite receiving a demand note from the authorities back in November 2022. Mohammad...

en.prothomalo.com

Gas crisis deepens: Industries wait indefinitely for connections
Mohiuddin Dhaka
Updated: 03 Jul 2025, 17: 04

Photo shows the Bhola gas field File photo

Lantabur Group has invested Tk 7 billion (Tk 700 crore) to establish a yarn factory in Trishal, Mymensingh. The construction was completed six months ago, but the factory remains non-operational due to no gas connection, despite receiving a demand note from the authorities back in November 2022.

Mohammad Salman, managing director of Lantabur Apparels, told Prothom Alo that the factory could employ 1,500 people once operational. “But without gas, we cannot begin production,” he said. Meanwhile, loan repayments have already started.

Lantabur is not just one case. According to Petrobangla and related sources, more than 1,000 industrial gas connection applications are pending with six gas distribution companies, including Titas. Of these, over 400 applicants have completed all procedures and are awaiting “promised connections,” meaning they have already deposited the required funds. Around 600 other factories have submitted applications but have yet to receive any assurance.

These 400-plus applicants include new factories (with promised connections ), expanded ones, and those requesting increased gas load (supply) for production.

The roots of this crisis lie in the 15 and half years of Awami League rule, which ended with the July mass uprising. The previous government prioritised gas imports over domestic exploration. By 2022, dwindling foreign reserves made gas imports difficult, and global prices surged. The Awami League government also left the energy sector steeped in massive debts, which the current interim government is now repaying. Although the new administration is emphasising domestic gas exploration, the crisis remains unresolved. As a result, existing factories are struggling, and new connections are practically frozen, thus crippling industrial operations.

For example, PRAN-RFL Group, one of the country’s largest industrial conglomerates, has established an export-oriented plastic factory in Matiyara, Cumilla. While partially operational, the plant is running well below capacity due to the lack of a captive gas connection.

Pipelines and two generators are ready, but the connection has yet to be provided. PRAN officials say the factory could create at least 5,000 new jobs. They received a demand note from Bakhrabad Gas Company on 23 June 2021, and another from Titas in January 2025 for a packaging factory—yet both remain unconnected.

Ahsan Khan Chowdhury, PRAN-RFL’s Chairman and CEO, said, “We’ve invested billions in these two factories. Now, in the final stage, the connection is being held up.”

Price hikes but no relief

Gas prices rose multiple times under the Awami League government, but the crisis never eased. In January 2023, prices for industrial gas rose by 150–178 per cent, with the promise of uninterrupted supply. On 13 April this year, under the interim government, the Bangladesh Energy Regulatory Commission (BERC) raised prices by another 33 per cent for new connections and load increases.

Meanwhile, since January 2025, all new gas connections have been completely halted. Only “promised connections” are prioritised—these are applicants who have received company board approvals, deposited the required security, and received demand notes by 13 April.

On 16 April, the Energy and Mineral Resources Division issued a directive to categorise all pending applications into three groups: new connections, load increases, and promised connections. On 18 June, a five-member verification committee was formed, led by an additional secretary. The committee is tasked with evaluating applications, prioritising them, assessing factory readiness, and conducting field inspections.

Officials clarify that under company law, the final authority to approve connections lies with the gas companies’ boards, not the ministry. However, the government can issue specific rules or policies if needed. Factories that can begin immediate operations upon receiving gas should be prioritised.

Muhammad Fouzul Kabir Khan, Adviser to the Ministry of Power, Energy and Mineral Resources, told Prothom Alo that the ministry will not approve connections directly—it must come from company boards. “There are also allegations of connections being granted in exchange for bribes. That’s why the committee is reviewing justification and prioritisation,” he added.

“Ensure Supply First”

Currently, Bangladesh supplies an average of 2.8–2.9 billion cubic feet of gas per day (mmcfd), while the demand is around 3.8 billion cfd. Industry alone consumes just over 1.2 billion cfd. If all promised connections are granted, demand will rise by at least another 100 mmcfd.

M Shamsul Alam, Energy Adviser to the Consumers Association of Bangladesh (CAB), told Prothom Alo that supply should be ensured before raising prices. “Promising connections just to lure investment is a form of fraud,” he said. He warned that delays and complexities in approvals may lead to corruption, bribery, and discriminatory practices.”

* The report, originally published in the print edition of Prothom Alo, has been rewritten in English by Farjana Liakat​

 

[Saif]

Gas distributors doing ‘crafty’ business

Some public gas distributors continue to sell what they say more gas than they purchase and they boast officially the impossible feat as system gain, although the assertion is beyond logic and is often described in a bad light by energy experts.

www.newagebd.net

Gas distributors doing ‘crafty’ business
Some sell more gas than they buy while others sell far less than ideal
Emran Hossain 05 July, 2025, 00:30

Some public gas distributors continue to sell what they say more gas than they purchase and they boast officially the impossible feat as system gain, although the assertion is beyond logic and is often described in a bad light by energy experts.

Two of the six gas distribution companies in their attempts to justify system gains said that they, unlike their four other peers, were never involved in gas theft and that they had in place an airtight gas network management.

The explanation refers to the high system loss prevailing in four public gas distributors, some of whom often see their system loss reach double digit against the global standards of 2 per cent.

In February, the latest month for which official gas distribution data are available, Petrobangla put the average gas distribution system loss to be 6.68 per cent, marking a better performance by the distributors compared with their previous month’s record of 7.96 per cent.

Titas Gas Transmission and Distribution Company Ltd distributing half of all gas consumed, which is 2,600mmcfd on average, reported as high as 9.21 per cent of system loss in February, after its performance significantly improved compared with that in the month before, with a system loss of 10.53 per cent.

‘Of course, there are a lot of areas where our services can improve,’ Md Rezanur Rahman, chairman of Petrobangla, told New Age about the overall gas transmission and distribution performance.New Age merchandise

Bangladesh’s strange cases of system loss and system gain, energy experts said, are more of an indication of intentional manipulation of transmission and distribution systems than of technical problems.

In other words, they said, system loss and gain can be described as clear evidences of stealing of gas and inefficiency of government officials.

Comprised of a network of pipelines, a gas distribution system delivers natural gas received from the transmission system to end users such as residential, commercial and industrial customers. Distribution and transmission of gas is completely taken care of by publicly owned companies. Imported LNG is blended with local gas before they are supplied in the national grid.

Associated equipment that gas transmission and distribution companies use includes regulators, which controls pressure, and meters and valves, which is connected to gas flow control.

Distributors receive gas in high pressure from the transmission company, Gas Transmission Company Limited. The GTCL supplies gas in a pressure of 200 pounds per square inch (psi).

The sale of a gas distributor should ideally be slightly less than what it purchased thanks to losses from evaporation and leakage. Abnormal loss or gaining of gas during distribution is clear sign of fraudulence or illegal activities, energy experts said.

Shahjahan al Mamun, general manager (operation) at Pashchimanchal Gas Company Limited, admitted that by claiming system gain they categorically said they sold more gas than what they bought, but he failed to give any logical explanation of achieving such an impossible feat.Bangladesh-themed souvenirs

‘Unlike most other distributors, we don’t have gas theft and leaking pipelines,’ said Shailoja Nanda Basak, general manager (marketing) at PGCL, while sharing the cause of his company’s system gain.

Officials at the PGCL said that they gained gas as they reduced its pressure while distributing compared with pressure at which they received gas from the transmission company. Power plants receive the maximum pressure of 150psi while the industries and captive power plants receive gas with a pressure of 15psi.

The commercial and residential customers receive piped gas with a pressure of only 0.5psi. But often gas pressure drops to just zero at the consumer end.

Reduction in pressure allows gas to expand, the PGCL officials explained, increasing its volume, which is the only unit by which gas supply is measured for billing customers. The distributors never take into account factors such as temperature, pressure and molecular elements, which the transmission company measures before supplying gas to distributors.

In February, the PGCL reported a system gain of 1.40 per cent, which was more than one percentage points higher than the previous month.

Sundarban Gas Company Limited, on the other hand, reported 1.44 per cent of system gain in February.

When asked about how this happened, SGCL general manager (marketing) Md Zahir Uddin said that the matter was complex and could not be so simply understood.

SGCL managing director Gautom Chandra Kundu said that there could be metering error behind their success, but insisted that a deviation of 2 per cent in distribution account was globally acceptable.

Consumers alleged inaccurate metering and tampering of meters are rampant.

The SGCL and the PGCL are rather new with relatively modern system in operation. They also cover small areas and their residential users are small families unable to consume more gas than what they need, unlike what happens in mess in towns and cities like Dhaka.

Energy experts said that residential customers consuming more gas than what they paid for was an unrealistic proposition. Until some of the consumers switched to pre-paid meters, residential customers used to pay a set monthly bill for an assumed consumption of 77 and 72 cubic meters against double and single burners, respectively.

In June 2022, the BERC reduced the assumed consumption to 66 and 55 cubic meters, ruling that the customers’ actual use is 40 cubic meters and that they have all been overbilled by gas companies.

Commercial industrial and captive users often complain of receiving gas with one or two psi, far less than they are supposed to get.

Gas companies did not meter gas transmitted or distributed for decades, billing consumers for assumed consumption based on their annual expenses.

All gas companies kept reporting system gain even a decade back when system loss mostly did not exist.

Karnaphuli Gas Distribution Company Limited reported almost 8 per cent system gain in 2023-14 following years of presenting similar record.

Bakhrabad Gas Distribution Company Limited reported 2.10 per cent system gain in the same financial year while Jalalabad Gas Transmission and Distribution System Limited reported the only system loss of 0.51 per cent in the same year.

Titas Gas Transmission and Distribution Company Ltd, on the other hand, reported 1.32 per cent of system gain in the same financial year.

‘All these accounts of system loss or gain hold no water for there was no metering system until 2023,’ said Titas managing director Shahnewaz Parvez.

Earlier, the transmission company distributed its cost on distribution companies based on assumed consumption, never using meters to determine the amount of gas it was actually supplying.

A tension still persists between the transmission and distribution companies for the latter believe the former’s recently introduced metering system was not properly working.

Distributors also use meters that are not properly calibrated and vary in reading for they are bought from different manufacturers.

Gas meets over half of Bangladesh’s primary energy need. Bangladesh’s industry expanded mainly based on gas, which started flowing through pipes even before the country won its independence in 1971.​

 

[Saif]

Gas crisis deserves priority attention

Our industrial and economic future depends on it

www.thedailystar.net

Gas crisis deserves priority attention
Our industrial and economic future depends on it

VISUAL: STAR

The news of the government's failure to provide gas connections to over 1,000 industrial units and factories—despite more than 400 applicants having completed all formalities, including the payment of required fees—is indeed concerning. Among them is a factory established by Lantabur Group at the cost of Tk 700 crore. The company received its demand note for the connection as early as November 2022. Once operational, the facility was expected to employ around 1,500 people. Yet, despite construction being completed six months ago, it remains non-operational due to the lack of gas supply. In the meantime, the company has already begun repaying bank loans despite not having generated any revenue from it.

Unfortunately, this is not an isolated case. The 400 applicants currently awaiting connections include both new and expanded factories, as well as those seeking an increase in gas supply. A further 600 factories have applied for connections but have yet to receive any assurance of approval. This clearly demonstrates the extent to which industrial and economic growth is being held back by the ongoing gas connection crisis.

Industrialists have been sounding the alarm on this issue for years. However, the Awami League government, during its tenure, was heavily reluctant to invest in domestic gas exploration even though expert assessments indicated considerable potential. Instead, it placed excessive reliance on imports. With global gas prices having fluctuated drastically in recent years, this dependency has, unsurprisingly, proven costly. Consequently, industries have suffered and continue to do so.

The Awami League government also burdened the energy sector with massive debt through corruption and poor governance—debt that the interim government is now having to repay. But this has significantly reduced its financial flexibility. Although it has rightly prioritised domestic gas extraction, the benefits of such efforts will take time to materialise. That said, while it may be risky for the government to take on added financial pressure to rapidly boost gas supply, it should seriously consider it simply to stimulate industrial activity and accelerate economic recovery in the short term.

At present, the country supplies around 2,800-2,900 million cubic feet (mmcf) of gas per day, against a demand of 3,800 mmcf. And just over 1,200 mmcf is allocated to the industrial sector. To provide all promised connections, an additional 100 mmcf will be required. We urge the authorities to explore all viable options for acquiring this additional supply. Furthermore, the entrenched corruption in the energy sector—including credible allegations that some suppliers demand bribes in exchange for gas connections—must be thoroughly investigated and eradicated.​

 

[Saif]

Petrobangla picks 8 banks for LNG imports backed by WB guarantee

State-run Petrobangla has selected eight local and foreign commercial banks to facilitate the import of expensive liquefied natural gas (LNG), backed by a repayment guarantee from the World Bank (WB), as Bangladesh seeks to secure its future energy supplies and ease pressure on foreign exchange res

thefinancialexpress.com.bd

Petrobangla picks 8 banks for LNG imports backed by WB guarantee

M Azizur Rahman
Published :
Jul 05, 2025 23:48
Updated :
Jul 06, 2025 22:31

State-run Petrobangla has selected eight local and foreign commercial banks to facilitate the import of expensive liquefied natural gas (LNG), backed by a repayment guarantee from the World Bank (WB), as Bangladesh seeks to secure its future energy supplies and ease pressure on foreign exchange reserves.

Following a competitive tender, Petrobangla shortlisted three foreign banks - Germany's Deutsche Bank, the Development Bank of Singapore, and Standard Chartered - and five local banks - Prime Bank PLC, Eastern Bank PLC, Dutch-Bangla Bank, the City Bank PLC, and BRAC Bank PLC - to provide financial support for LNG imports starting in 2026.

"These banks and financial institutions were selected from among 31 banks and 11 consortiums that submitted bids," said AKM Mizanur Rahman, director (finance) of Petrobangla, speaking to The Financial Express on Saturday.

The selected banks will form a consortium to provide Petrobangla with a stand-by letter of credit (SBLC) worth US$200 million, valid for up to 12 months, in favour of long-term LNG suppliers under existing sales and purchase agreements (SPAs).

They will also offer an additional SBLC worth $50 million, valid for up to 90 days, for spot LNG suppliers under master sales and purchase agreements (MSPAs).

In addition, the banks will provide a $100 million credit line in the form of short-term loans with up to a 12-month tenor to help Petrobangla meet payment obligations for specific LNG cargoes under the SPAs and MSPAs.

Petrobangla officials said negotiations are in the final stages before signing the agreements. This financing arrangement comes after the World Bank's board of executive directors approved $350 million in late June under its Energy Sector Security Enhancement Project.

The project aims to improve Bangladesh's gas supply security by facilitating access to affordable financing for LNG imports.

The project will use an International Development Association (IDA) guarantee to mobilise up to $2.1 billion in private capital over the next seven years to support LNG imports.

The IDA, the World Bank's soft-lending arm, will guarantee Petrobangla's repayment obligations to the banks for loans and SBLC draws, covering up to $350 million in principal and accrued interest. However, the guarantee will not cover penalties, default interest, or similar charges.

This marks the first time the World Bank has extended assistance to Bangladesh through a guarantee facility specifically for LNG imports. The multilateral lender typically provides development project loans and budgetary support to the country.

The IDA guarantee is expected to enhance Petrobangla's credit profile, enabling it to secure LNG supplies more effectively amid mounting foreign currency constraints.

The World Bank noted that LNG now accounts for over a quarter of Bangladesh's total gas consumption, with imports costing around $4.5 billion annually.

Approximately 42 per cent of the country's gas is consumed by the power sector, making LNG supply disruptions a major risk to electricity generation and overall economic activity.

"The project will help Bangladesh enhance gas supply security in a cost-efficient manner, contributing to reliable and affordable electricity for industries and domestic users," said Olayinka Bisiriyu Edebiri, a senior energy specialist at the World Bank.

Bangladesh's growing dependence on imported fuels continues to strain its economy, especially due to challenges in securing foreign currency for essential imports.

Since LNG imports began in 2018, Bangladesh has imported around 30.64 million tonnes of LNG as of May 2025, according to official data from Rupantarita Prakritik Gas Company Ltd.

With domestic gas reserves rapidly depleting, Bangladesh is expected to need 30 million tonnes of LNG per year by 2041 to meet surging demand. A recent study by Danish consultancy Ramboll, in collaboration with the Geological Survey of Denmark and Bangladesh-based EQMS Consulting, warned that the country's existing gas reserves could be exhausted by 2038 without new discoveries.

Petrobangla projects that by 2041, daily gas demand could reach 8 billion cubic feet, significantly higher than the current supply of around 2.87 billion cubic feet per day.

Of this, approximately 1.02 billion cubic feet come from imported LNG, while 1.85 billion cubic feet are sourced from domestic production.

The banks involved in the financing are optimistic about their role in supporting Bangladesh's energy security.

"Prime Bank is ready to assist and facilitate the government's efforts to secure the country's energy supply," said Tanjil Chowdhury, chairman of Prime Bank. "We have a strong balance sheet and are fully capable of meeting Petrobangla's financing needs. We are proud to partner with the government."

Bangladesh recently cleared all its overdue LNG import bills after facing payment challenges over the past three years.

Petrobangla officials noted that the IDA guarantee, alongside an existing $600 million loan agreement with the International Islamic Trade Finance Corporation (ITFC), will enable the country to make timely payments for LNG imports going forward.​

 

[Saif]

Govt should end fraudulence in gas distribution

TWO of the six public gas distributors claim system gains, noting that they have sold more gas than they have purchased. The other four public gas distributors are reported to have been plagued by high system losses. The gainers claim an advantage in...

www.newagebd.net

Govt should end fraudulence in gas distribution
06 July, 2025, 00:00


TWO of the six public gas distributors claim system gains, noting that they have sold more gas than they have purchased. The other four public gas distributors are reported to have been plagued by high system losses. The gainers claim an advantage in the ranges of 1.4–1.44 per cent whilst, as the February data show, the average system loss has been 6.68 per cent for others. Yet, Titas Gas Transmission and Distribution Company, which distributes a half of gas consumed, 2,600mmcfd on an average, reports to have faced a system loss of 9.21 per cent after a significant improvement in its performance compared with the figure the month before, when the system loss of the company was 10.53 per cent. The global standard of system loss remains 2 per cent. Energy experts, however, say that both the system loss that the distribution companies face and the system gain that the distribution companies claim are nothing but the stealing of gas, inefficiency of government officials and irregularities of the distribution companies. The loss and the gain are an indication of a deliberate manipulation of the transmission and distribution systems rather than technical problems.

In addition to Titas Gas reporting system loss in February, the three other entities that report system loss are Bakhrabad Gas Distribution Company, Jalalabad Gas Transmission and Distribution System and Karnaphuli Gas Distribution Company. Viewed against the global standard of system loss, the four entities are definitely plagued by irregularities as they have reported loss that is much higher in February compared with the figures the month before even after improvement in their performances. But the case of Sundarban Gas Company that has reported a 1.44 per cent system gain and Pashchimanchal Gas Company that has reported a 1.4 per cent system gain appear curious. No company can sell gas more than what it buys from Gas Transmission Company. The catch, therefore, lies elsewhere. The distribution companies buy gas from Gas Transmission Company at the maximum pressure of 150 pounds per square inch, but industries and captive power plants get the gas at 15psi. Commercial entities and households receive gas at only 0.5psi, which often declines to 0psi at the consumer end. A reduction in pressure allows gas to expand, increasing its volume, the only unit by which the supply is measured in billing customers. Factors such as temperature, pressure and molecular elements, which the transmission company maintains, are ignored, making the apparent gain, which is nothing but fraudulence.​

 

[Saif]

Energy assoc urges review of scrapped solar plans

The Bangladesh Sustainable and Renewable Energy Association yesterday urged the interim government to reconsider its cancellation of 31 letters of intent that the past regime had signed with potential investors in solar power projects without adopting any tender process...A letter of

www.thedailystar.net

Energy assoc urges review of scrapped solar plans

The first on-grid solar plant, set up on eight acres of land under Sarishabari Sales and Distribution of Power Development Board in Sarishabari upazila of Jamalpur, has reduced load-shedding and air pollution in the upazila. PHOTO: STAR

The Bangladesh Sustainable and Renewable Energy Association yesterday urged the interim government to reconsider its cancellation of 31 letters of intent that the past regime had signed with potential investors in solar power projects without adopting any tender process.

A letter of intent is a document outlining the preliminary understanding between two or more parties who intend to enter into a formal agreement.

It is essentially a blueprint for a deal, setting out key terms and conditions before a legally binding contract is finalised.

Last week, the Centre for Policy Dialogue (CPD) also sought a review of the letters of intent.

The floating of tenders seeking bids for 55 new solar power projects was a positive development, but these did not draw foreign investors as expected, said the association.

"In some cases, only one bidder has shown interest, while in others, no one has participated at all," said Mostafa Al Mahmud, president of the association, at a press conference at the Dhaka Reporters' Unity.

Around $300 million has already been invested in the cancelled projects, and the interim government's decision might create a sense of distrust among investors, he said.

Besides, the interim government has cancelled a provision under "implementation agreements" that enabled refunds of investments in cancelled projects, he said.

The refunding is necessary for the expansion of renewable energy generation capacity in the country, he added.

Mahmud thanked the government for updating the renewable energy policy and demanded a specific roadmap towards meeting the renewable energy target.

He said the High Court has already issued a directive to install rooftop solar systems on all buildings, but a clear roadmap such as on the engineering, procurement, construction, and financing aspects has yet to be made available.

The press conference highlighted that increasing the generation of renewable energy is now a national imperative.

Bangladesh is becoming increasingly dependent on energy imports due to a steady decline in gas production, putting substantial pressure on foreign currency reserves, it said.

The association demanded tax benefits for the renewable sector and thanked the government for reducing the customs duty on solar inverters to 1 percent from 10 percent.

"We believe that this kind of tax reduction should be extended to other essential solar components as well, like mounting structures, DC cables, controllers, batteries, and solar pumps—duties on which are still high," it said.

Their demand includes the implementation of net metering guidelines, ensuring the installation of rooftop solar panels on all residential buildings in urban areas, forming a modern monitoring and support framework, and the withdrawal of the 7.5 percent trade VAT.​

 

[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.​