How Cronyism and Kleptocracy Dominated Hasina-Era Power Sector

Bangladesh’s power sector has been mired in cronyism and kleptocracy, with onesided deals signed under the 2010 special act draining nearly $1.5 billion annually, according to the National Review Committee formed by the interim government to investigate power contracts.

The committee recommended that the government renegotiate all one-sided agreements.

It specifi cally urged initiating the cancellation process of the Adani Power deal, describing it as one of the most one-sided contracts signed during the previous regime.

The committee also said agreements approved during the Sheikh Hasina rule were designed to consolidate state power through manipulated procurement processes and fl awed planning, resulting in massive fi nancial losses for Bangladesh.

Govt to Procure 5 Cargoes of LNG

The government recently approved a proposal for procuring fi ve LNG cargoes in 2026 on G2G basis from Aramco Trading Singapore Pte Ltd to meet the country’s rising energy demand.

The approval came from the 4th meeting of the Advisers Council Committee on Government Purchase in this year held recently with Finance Adviser Dr Salehuddin Ahmed in the chair at the Cabinet Division Conference Room at Bangladesh Secretariat. Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan briefed reporters after the meeting.

The Petrobangla will procure LNG directly from Aramco Trading Singapore Pte Ltd under a government-togovernment arrangement.

The price has been fi xed at JKM plus US$ 0.145 per MMBTU.

BNP’S LANDSLIDE IN A LANDMARK ELECTION

BNP’s stunning victory in the landmark general election on February 12 is being seen as a triumph of pro-liberation, pro-women’s rights, and moderate values. Led by the party’s 60-yearold chairman, Tarique Rahman, who returned home ending 17 years of selfimposed exile less than two months before the consequential vote, the Bangladesh Nationalist Party overcame an unexpected surge from the Islamist party Jamaat-e-Islami, a party emboldened by its alliance with the National Citizen Party of July warriors.

If Jamaat had won, it would have been its fi rst such achievement not only in Bangladesh but also in the entire subcontinent. Despite its failure to grab state power, Jamaat’s performance in the polls has been quite impressive – far better than the Jamaat in Pakistan. From only 18 seats in 1991, this time Jamaat has increased its tally to 68.

It had won only three seats in 1996, when it contested independently.

In Bangladesh, Jamaat has a history of being subjected to ban, losing registration, and its top leaders hanged to death for crimes against humanity committed during Bangladesh’s 1971 War of Liberation, during which it collaborated with the occupying Pakistani military in the genocide and rape of women. For most of its political career in Bangladesh, Jamaat was the junior alliance partner of BNP.

But during the February 12 polls, Jamaat for the fi rst time in 17 years formed an alliance under its own leadership and directly fought against the BNP.

Although it did not secure enough seats to form a government, the alliance’s tally of 77 seats raised many eyebrows, with political pundits going deep to fi nd the reasons. Jamaat has always been a party known for its stronghold in the northwest and the southwest.

The Islamist party had never won a seat in the capital.

This time, however, it secured six of the 15 seats in the Dhaka metropolitan area, including Dhaka-4, Dhaka-5, Dhaka-12, Dhaka-14, Dhaka-15, and Dhaka-16.

In addition, alliance candidate and NCP convener Nahid Islam secured the Dhaka-11.

Its vote share nationally has also seen a big jump.

Though Jamaat’s Amir Shafi qur Rahman has accepted the results, the party has been demanding a recount of votes in 30 constituencies where candidates from the Jamaatled alliance lost by narrow margins. Jamaat’s emergence as a formidable opposition has largely been possible due to the absence of the Awami League, whose activities have been banned by an executive order of Professor Muhammad Yunus’ interim government.

The entire election process and its outcome would have been different should Awami League been in the fray.

Thanks largely to BNP’s pro-liberation pitch, Jamaat’s upswing suffered a setback.

But it may prove temporary if BNP fails to deliver on the electoral pledges.

A special feature of this election has been the race between BNP and Jamaat to woo the Awami League voters.

Both parties benefi ted, while analysts say BNP profi ted more than its allyturned-rival.

A large number of Awami League workers and supporters defi ed their exiled leader Sheikh Hasina’s call to stay away from the vote.

A majority of them voted for BNP, their arch-rival, just to prevent the Jamaat from taking offi ce in a country whose independence it had opposed.

After the results were out, the pro-independence forces heaved a sigh of relief.

Their logic: Nai mamar cheye kana mama valo (something is better than nothing).

A second factor working against Jamaat has been the party’s misogynist stance. Jamaat Amir’s controversial remarks on reducing women’s out-of-home working hours, his party’s failure to nominate any woman candidate, and calling women unfi t for leading his party angered many women just before the polls.

By rejecting Jamaat in the ballot boxes, women in Bangladesh have ditched the politics of theocracy.

Thus, Jamaat’s loss became BNP’s gain.

Australia, Trkiye, UN Convene for First COP31 Talks

Australia’s Minister for Climate Change and Energy met with Trkiye’s Minister for Climate Change and the UN’s climate chief recently to start planning for COP31.

Australia and Trkiye are working in lockstep to deliver COP31 and the Pacifi c Pre-COP.

This was the fi rst offi cial meeting between Trkiye, Australia and the UNFCCC. Former COP presidents from Brazil and Azerbaijan as well as DCCEEW offi cials also joined in Istanbul.

Every year, the Conference of the Parties (COP) brings countries together to tackle climate change. Nations that are party to the UNFCCC meet to check progress and push for stronger action. Climate Change and Energy Minister Chris Bowen is President of Negotiations for COP31.

He joined the meetings via video conference. ‘Working together, Australia, the Pacifi c and Trkiye will deliver real progress for global climate action through COP31 in Trkiye and Pre-COP in the Pacifi c,’ Minister Bowen said.

Trkiye’s Climate Change Minister Murat Kurum is the COP PresidentDesignate.

He described our partnership as one of the most important pillars of the COP31 process.

Bangladesh Cuts Fuel Prices by Tk 2 a Liter at Start of 2026

Bangladesh cut retail fuel prices by Tk 2 a liter from January 1, reversing an increase imposed a month earlier as part of its automatic fuel pricing mechanism.

the Energy and Mineral Resources Division said in a noti?cation issued recently that the prices of diesel, octane, petrol and kerosene have been reduced to Tk 102, Tk 122, Tk 118 and Tk 114 per liter respectively. Previously, the fuels were priced at Tk 104 for diesel, Tk 124 for octane, Tk 120 for petrol and Tk 116 for kerosene. Domestic fuel prices in Bangladesh are adjusted monthly in line with global market movements under the ‘Revised Fuel Automatic Pricing Guidelines,’ the noti?cation said, adding that the latest revision aims to keep fuel comparatively affordable for consumers.

Paramount Textile to Add Solar Power as New Revenue Stream

Paramount Textile is going to diversify into solar power generation, expecting nearly Tk 3.07 billion in revenue from solar plants over 20 years from FY28.

the fabric producer, one of the most pro?table textile companies among those listed, made the disclosure recently.

the new possible revenue stream is more than 25 per cent of revenue in FY25.

the company earned Tk 12.26 billion in revenue and secured Tk 1.21 billion in net pro?t, with a 9.90 per cent pro?t margin.

according to the disclosure, Paramount Textile and Paramount Holdings were jointly awarded the project to develop four solar plants at different locations across the country, with a combined capacity of 295 megawatts. The company also informed that the joint venture partners had received the Noti?cation of Award (NOA) from the Bangladesh Power Development Board (BPDB), issued under the Public Procurement Rules 2008.

the Power Purchase Contract (PPC) will be executed within 28 days from the date of the NOA, and the project implementation period is two years from the date of the PPC.

Bangladesh’s Gas Crisis Demands Hard Energy Choices

Bangladesh has been experiencing a worsening energy trauma. Widespread power shortages are affecting households and businesses alike. Local gas resources are depleting rapidly, forcing power plants to switch to imported lique?ed natural gas (LNG) despite its sharply rising spot market prices.

although the crisis has eased somewhat in recent months, the energy sector continues to suffer from excessive reliance on highly volatile and costly imported LNG, coal, and oil. Growing dependence on imported fossil fuels for power generation has intensi?ed volatility in the energy sector while signi?cantly increasing the country’s ?scal burden. Foreign exchange reserves have come under pressure, and subsidy requirements have risen sharply.

the expanding intrusion of LNG into the energy sector is therefore dangerous and must be halted at the earliest opportunity. Bangladesh’s LNG import prices have ?uctuated since 2019, with a dramatic spike in 2022 due to global market disruptions.

initially, prices were relatively moderate, as several contracts were signed based on a percentage of Brent crude oil prices. However, spot market prices surged sharply, substantially increasing Bangladesh’s import costs.

the country had longterm LNG supply contracts with Qatar and Oman, with prices linked to Brent crude. For example, one agreement with OQ Trading priced LNG at 11.90% of the three-month average Brent crude price plus US$0.50 per MMBtu.

in 2022, spot LNG prices soared due to global events, with some cargoes purchased at US$35.89 per MMBtu and US$36.95 per MMBtu.

although Bangladesh continued importing LNG under longterm contracts and, to a limited extent, from the spot market, overall prices remained high. Given the severe gas shortage- particularly affecting industries and fertilizer plants-it has become essential to reassess gas utilization priorities.

areas where gas can be substituted with alternative fuels must be identi?ed so that the gas saved can be redirected to higher-value sectors. Continued operation of compressednatural gas (CNG) stations and the supply of piped gas to residential kitchens, even if limited to selected areas, require careful review. While CNG offers environmental bene?ts and domestic gas use reduces foreign exchange spending on cooking fuels, the current crisis demands prioritization of essential sectors. Balancing the needs of transport and residential consumers with those of industry and fertilizer production has become critical.

in 2001-02, it was widely claimed that Bangladesh was ‘?oating on gas.’ At least that was the view of some experts and oil companies.

a few years earlier, US-based Unocal had discovered the Bibiyana gas ?eld and argued that Bangladesh lacked suf?cient domestic demand to justify developing such a large resource.

unocal even sought government approval to export gas to India.

at the same time, the Asian Development Bank (ADB) was supporting a government initiative- the Clean Fuel Project-to promote the use of compressed natural gas in the transport sector.

the CNG program proved immensely successful after its launch in 2002-03, largely because it was far cheaper than alternative fuels and created lucrative business opportunities in vehicle conversion and refueling infrastructure. Hundreds of CNG stations were established, and hundreds of thousands of vehicles and threewheelers were converted within a few years. By the end of that decade, CNG use was reportedly saving Bangladesh around US$800 million annually in petroleum imports. However, the rapid expansion of the CNG network signi?cantly destabilized gas supply pressure by 2010. By then, the Bibiyana gas ?eld was producing substantial volumes for the domestic market, yet Bangladesh was already facing gas shortages.

the country was never truly ‘?oating on gas.’ The CNG sector alone was consuming about one-tenth of the total daily gas supply of roughly 2,000 million cubic feet per day (mmcfd), while the domestic sector accounted for approximately 12.1% of total natural gas sales. Despite this, there was already a demand shortfall of 400-600 mmcfd.

this situation compelled the government to halt new gas connections for all categories of consumers, although some industrial connections were approved under special arrangements.

these restrictions largely remain in place today, as demand has never been fully met amid steadily declining supplies. At the same time, demand continued to grow rapidly due to the country’s fastpaced economic development.

this widening supply-demand gap ultimately forced the government to begin importing LNG at high cost from 2018-19 onward.

imported LNG has since been blended with domestic gas and supplied through the national grid to keep gas-dependent industries, power plants, and other consumers operational.

over the last decade, there has been no signi?cant new discovery of oil or gas.

as a result, the domestic share of gas supply has been steadily declining over the past four years.

at present, the government can supply a maximum of around 3,000 million cubic feet per day (mmcfd) of gas, of which 600-800 mmcfd comes from imported LNG. Gas demand in 2010-11 stood at about 2,400 mmcfd. Given an annual demand growth rate of roughly 10%, total demand should have exceeded 5,000 mmcfd by now.

this has created a severe gas de?cit, directly affecting power generation, which is vital for the national economy. Despite the crisis, the use of compressed natural gas (CNG) continues to grow. CNG is no longer cost-effective, involves long waiting times, and, most importantly, there is not enough gas even for industries that generate export earnings and provide the largest number of jobs. Yet, policy inertia has allowed the continued expansion of CNG vehicles, as if the gas shortage does not exist.

a similar situation exists in the domestic use of gas.

in the early days of gas distribution, household kitchens were the primary customers of gas companies. Various incentive schemes were introduced to encourage residential adoption of natural gas. Initially, uptake was limited, but changes in fuel prices and consumer behavior eventually drove demand to levels that became dif?cult to manage. Domestic consumers became increasingly aggressive, and gas companies and related stakeholders became entangled in widespread illegal practices.

titas Gas has been actively disconnecting illegal gas connections- including industrial, commercial, and residential lines-as part of a broader crackdown on unauthorized gas use. Between September 2024 and April 2025, the company disconnected 29,617 illegal connections, removed 67,120 burners, and dismantled 144 kilometers of illegal pipeline.

the disconnection drive has targeted unauthorized connections across multiple regions and customer categories.

its objectives include preventing gas theft, ensuring lawful usage, and recovering outstanding dues.

in one operation alone, Titas Gas disconnected 400 illegal connections in Savar, including one commercial establishment, and removed 1.5 kilometers of illegal pipeline.

alongside enforcement, Titas Gas has conducted public awareness campaigns to inform consumers about the consequences of illegal connections and to encourage cooperation in preventing gas theft.

individuals involved in illegal gas connections have faced ?nes and, in some cases, imprisonment.

these efforts have resulted in signi?cant gas savings, with estimates suggesting that millions of cubic feet of gas are being conserved daily.

energy Adviser Muhammad Fouzul Kabir Khan recently stated that, if given the opportunity, he would disconnect all domestic gas connections in Dhaka to curb wastage.

according to him, ‘Providing gas to households is a waste, especially when industrial sectors are struggling with shortages.

there will be no new residential gas connections going forward-this option should be permanently closed.’ This underscores the urgency of reconsidering existing policies.

it may now be time for the government to seriously consider phasing out CNG vehicles and replacing natural gas in household kitchens with alternative fuels.

the country must adjust to the hard reality of having limited gas resources.

unless policy direction changes, the continued use of gas for CNG and unrestricted domestic consumption-the merry burning of blue ?ames in kitchens-will only worsen shortages for high-value users. Given the energy crisis arising from the rapid depletion of natural gas reserves, with no clear signs of adequate replenishment through new discoveries, it is imperative to explore innovative solutions that can extend the availability of gas for priority sectors of the economy.

one such option could be the introduction of biogas as a substitute, produced in and around existing town gas distribution systems, using current infrastructure to supply households that now depend on piped natural gas.

an innovative biogas production project could be designed to establish commercial biogas generation facilities near city gate stations, operated using cow dung sourced from surrounding suburban and rural areas. A complementary incentive-based scheme could encourage householdsoutside city limits to keep a small number of cows, ensuring a steady supply of milk and cow dung. Cow dung could be sold to milk processors and biogas production units operated by gas distribution companies.

under this model, a ring main could be constructed around the city, with gas compressors installed near existing city gate stations to raise pressure to predetermined levels for distribution. Biogas plants would collect cow dung from surrounding areas, where families could be encouraged to maintain herds of four to six cows, generating both milk and dung for income. Gas companies would appoint specialized agents to collect cow dung from households at scheduled times using mechanized vehicles.

each agent would issue receipts indicating the volume collected.

the collected cow dung would be transported to centralized receiving stations at biogas generation facilities. Agents would be paid for collection and delivery services, while households would receive digital payments for the supplied cow dung.

a transparent ?nancial mechanism would be established to manage payments and reconciliation among households, agents, and gas companies. With a suf?cient number of collection agents, the system could operate without supply bottlenecks.

the cow dung will be digested through an established process, and the biogas generated will be transferred to a chamber from which it can be compressed to a predetermined level. The compressed gas will then be supplied to the city gate station for onward distribution through the city gas pipeline network.

in this way, a portion of the current gas supply for domestic use could be replaced by cow dung-based biogas, while the natural gas saved could be redirected to industrial and commercial users that generate higher value addition for the national economy. This project would create substantial employment opportunities and support the development of the cattle, agricultural, and dairy sectors.

it would also open signi?cant income-generating avenues for households located near biogas production facilities operated by existing gas distribution companies. Initially, a limited number of pilot biogas units could be established within gas franchise areas.

if successful, the model could be replicated across all gas distribution companies, thereby diversifying gas input sources and expanding the role of renewable energy in the country’s energy mix.

a feasibility study on this concept should be initiated as a joint venture involving gas distribution companies or Petrobangla, along with the relevant agricultural and livestock departments. Such coordinated efforts would help ensure optimal use of existing infrastructure while promoting a cleaner environment-providing households with cleaner kitchen fuel on one hand and new income-generating opportunities on the other.

the proposed project is not without precedent. Similar initiatives have already been launched at the corporate level in neighboring India. Mumbaibased natural gas distribution company Mahanagar Gas Limited, a well-known public sector unit of GAIL, is investing approximately Rs 1,323 crore with partners to establish a battery manufacturing unit and a compressed biogas production facility over the next two years as part of a diversi?cation strategy.

in line withgovernment policies promoting clean mobility, the company aims to expand into non-fossil fuel segments. Currently, about 70 percent of Mahanagar Gas’s revenue comes from CNG, prompting the company to seek long-term growth by entering at least one non-fossil fuel business.

it has already formed a joint venture with the US-based International Battery Company to set up a gigafactory in Karnataka.

in another example, the Indian state of Uttar Pradesh has rolled out the Gram-Urja model to enhance energy self-suf?ciency and create employment opportunities for rural households. According to a state government statement issued on July 15, 2025, the initiative promotes local production of organic fertilizer and aims to reduce domestic LPG consumption by 70 percent.

the program is being integrated with the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme and is designed to directly bene?t farmers.

under the model, biogas units will be installed near individual households or farms, enabling farmers to produce cooking gas and organic fertilizer for personal use.

this will reduce farming costs, improve productivity, and create new income streams. Rural households will also bene?t from the construction of personal cattle sheds, with dung used in biogas units to generate kitchen fuel.

additionally, the government plans to establish biogas and organic fertilizer plants in 43 selected cow shelters, each expected to produce up to 50 quintals of slurry per month – a valuable resource for nearby farmers engaged in organic farming.

it must be recognized that electricity is the backbone of all economic activity in a country. Scrutiny reveals that the progress Bangladesh achieved from the late 1990s through the early 2020s owed much to the largely continuous availability of electricity across key economic sectors.

this, in turn, was made possible by a relatively seamless and uninterrupted supply of natural gas to the power sector. If gas supplies are disrupted, the country’s outlook will be bleak. Without access to gas at an affordable price for power generation, national economic stability will be at risk.

after gas, coal remains the most viable alternative for largescale power generation. Bangladesh possesses substantial coal reserves that have remained largely untapped to date due to various political, environmental, and social pressures. Under the current circumstances, it may be prudent to reconsider coal mining as a means of supporting power generation. Coal could continue to serve as a primary fuel for electricity generation during a transition period, until acceptable and scalable renewable energy sources – possibly including kinetic energy from river ?ows – can be developed to meet the country’s full electricity demand.

at the same time, the government must continue more robust ?nancial and technical programs for oil and gas exploration. An integrated Energy System Master Plan addressing all critical issues, including biogas development and coal mining, should be initiated without delay to ensure long-term energy security and economic resilience

Nature Conservation Award 2025 Ceremony Held

Syeda Rizwana Hasan, Adviser to the Ministry of Environment, Forest and Climate Change; the Ministry of Water Resources; and the Ministry of Information and Broadcasting, said that courageous and responsible institutions working for the welfare of nature and people are what the country needs most. She noted that the government alone cannot reach every corner of society, and such institutions are the government’s strongest partners. She emphasized that institutions delivering doorstep services at the grassroots level in areas such as healthcare, environmental conservation, and the protection of culture and heritage must work in close coordination with all government agencies.

the Environment Adviser made these remarks recently while speaking as the chief guest at a program jointly organized by the Nature and Life Foundation and Channel i at Chetana Chattar of Channel i in the capital.

at the event, in recognition of her long-standing outstanding contributions to nature, the environment, and the lives of marginalized people in Bangladesh, the ‘Nature and Life Foundation- Channel i Nature Conservation Award 2025’ was presented to Runa Khan, Founder and Executive Director of the social development organization Friendship.

LPG’s Green Fuel Status to Attract More Investment: LOAB

LPG Operators Association of Bangladesh (LOAB) recently said the recognition of the Lique?ed Petroleum Gas (LPG) as green fuel will play a signi?cant role in promoting cleaner energy usage, ensuring national energy security, and encouraging further investment in the sector. ‘It will also contribute positively to achieving the country’s energy and environmental objectives in alignment with the best global practices,’ said LOAB President Mohammed Amirul Haque in a letter sent to Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan. On behalf of the LPG Operators Association of Bangladesh (LOAB), he expressed their sincere gratitude to the Ministry of Power, Energy and Mineral Resources for declaring Lique?ed Petroleum Gas (LPG) as a green gas.

Govt Unveils 25-Year Power, Energy Master Plan

The government has unveiled a new 25-year power and energy master plan, to be implemented from 2026 to 2050.

according to a recent press release from the chief adviser’s press wing, implementing the plan will require an estimated $177 billion to $192 billion. Muhammad Fouzul Kabir Khan, adviser to the Ministry of Power, Energy and Mineral Resources, submitted the master plan to Chief Adviser Prof Muhammad Yunus at State House Jamuna in presence of several advisers and senior of?cials. Policy gaps in the previous three master plans — prepared in 2005, 2010, and revised in 2016 — were identi?ed and brie?y reviewed during the meeting, the release added.

the new plan projects peak electricity demand of 59,000 megawatts (MW) by 2050, compared to 70,500 MW in the 2023 plan. Current demand is around 16,700 MW.

the 2023 integrated power and energy master plan, prepared with JICA’s support, was criticized by local experts for overestimating demand and including highcost fuel sources. Following the formation of the interim government, various quarters called for a review with input from local experts.