Category: Energy and Power

Lawmakers, fi sheries experts and environmental activists have called for reducing dependence on fossil fuels and expanding renewable energy to protect fi sheries, aquatic biodiversity and coastal livelihoods.

The call came at a discussion titled ‘Renewables Now to Protect Fisheries’ at the National Press Club in Dhaka, organized under the Renewables Now campaign by Dhoritri Rokhhay Amra (DHORA), Dream Research and Development Foundation (DRDF), Sundarban and Coastal Protection Movement and 34 other organizations.

Speakers said ash, heated water and pollutants from coal-fi red power plants can affect river water quality, dissolved oxygen and fi sh survival.

They urged environmental impact assessments of fossil-fuel-based power plants in and around fi sh sanctuaries and breeding grounds, along with a planned transition to solar and other renewable technologies.

Engineer Md Ashraf Uddin Bokul, chairman of the Parliamentary Standing Committee on the Ministry of Defence, said duty and VAT exemptions had been provided for renewable energy equipment as part of efforts to meet at least 20% of electricity demand from renewables by 2030.

Global sustainability efforts are expected to maintain momentum despite geopolitical uncertainty, with commercial and technological drivers increasingly shaping the pace of climate action, according to the World Economic Forum’s inaugural Chief Sustainability Offi cers Outlook.

The survey found that 63% of chief sustainability offi cers (CSOs) expect global sustainability progress to remain steady or accelerate over the next 12 months.

However, 78% expect geopolitical and macroeconomic pressures, including confl ict, policy uncertainty and weaker multilateral cooperation, to weigh on progress.

Artifi cial intelligence is emerging as both an opportunity and a challenge.

About 73% of CSOs expect AI to accelerate sustainability efforts, particularly through improved measurement, effi ciency and risk analysis.

India has approved Nepal’s import of up to 654 MW of electricity for 18 hours a day through the end of December, but approvals for several Nepalese hydropower projects to export electricity remain pending, leaving power supplies to Bangladesh uncertain.

India’s Ministry of Power approved supplies from Sept.

13 to Dec.31, with up to 600 MW through the Muzaffarpur-Dhalkebar line and 54 MW through the Tanakpur-Mahendranagar line.

The allocation for January 2027 will be reviewed in December.

Nepal is currently exporting around 600 MW a day to India, but export permits for the 38.8-MW Upper Chameliya, 24.25-MW Seti River and 10.7-MW Upper Tadi Khola projects have expired and have not yet been renewed.

Flood damage has also reduced Nepal’s available generation capacity.

Electricity exports to Bangladesh have been suspended after fl oods damaged the Trishuli and Chilime hydropower projects that supplied the 40-MW bilateral arrangement.

Adverse weather in the Bay of Bengal disrupted the transfer of imported LNG to fl oating terminals at Maheshkhali, causing Bangladesh’s gas supply to fall sharply recently.

Petrobangla said total gas supply fell to around 2,301 million cubic feet per day (MMCFD), comprising 1,615 MMCFD from domestic fi elds and 686 MMCFD of regasifi ed LNG (RLNG), compared with 2,610 MMCFD on September 15.

The disruption occurred as rough weather hampered LNG transfer from a carrier to the fl oating storage and regasifi cation units (FSRUs) offshore Maheshkhali.

The two terminals have a combined regasifi cation capacity of about 1,100 MMCFD and supply more than one-third of Bangladesh’s gas.

Petrobangla said the supply situation would return to normal once weather conditions improved.

Bangladesh needs a stable, long-term plan for gas exploration and fi eld development to increase domestic supply and reduce its growing dependence on imported LNG.

The country should not rely solely on natural gas for energy security; it should also expand renewable energy and ensure the effective use of domestic coal for power generation.

In the short term, production from existing gas fi elds should be increased through technical interventions, while gas from Bhola should be brought into the national grid as quickly as possible.

Janifar Hakim Lupin, Assistant Professor of Geology at the University of Dhaka, made the observations in an interview with Energy and Power Editor Mollah Amzad Hossain.

Bangladesh’s domestic gas reserves are depleting rapidly while dependence on imported LNG is increasing.

It is often said that the country still has signifi cant potential for discovering new gas.

Yet, despite drilling around 30 development and exploration wells over the past four years, there has been no major discovery.

Are we on the right track? The present gas crisis is the result of years of inadequate planning and insuffi cient investment in infrastructure.

The gap between demand and domestic supply has continued to widen.

To overcome the crisis, we must discover new gas and increase production through development wells.

However, failure to discover gas from an exploration well should not automatically be considered a failure of the exploration program.

There is simply no alternative to exploration if we want to discover new resources.

Even a dry well generates valuable geological and technical information that can improve future exploration.

We should not judge exploration success simply by the number of wells drilled.

The key question is whether we are using available geological and seismic data properly to identify the most promising drilling locations.

Even then, no exploration program can guarantee success.

Therefore, Bangladesh must continue exploration and development drilling as part of a sustained strategy rather than treating exploration as an emergency response to a gas shortage.

Around 300 million cubic feet per day of additional gas has reportedly been added from about 30 wells, much of it from Bhola.

While Chevron can produce 50-60 MMCFD from a single well, national companies often produce only around 10 MMCFD.

Is this primarily a technological gap or a planning problem? I believe both factors are involved.

Two-dimensional seismic surveys have already been conducted over most of the prospective structures onshore.

Before drilling new wells, these data need to be reinterpreted using modern techniques.

At the same time, three-dimensional seismic surveys should be carried out in priority areas.

Bangladesh is a deltaic geological environment where changes in sedimentation can signifi cantly alter hydrocarbon prospects.

Therefore, all available geological and seismic information must be thoroughly analyzed before fi nalizing drilling locations.

There are shortcomings both in planning and implementation.

At the same time, there is no doubt that our national companies lag behind international companies such as Chevron in the use of modern exploration and production technologies.

Our national companies should therefore work with international oil companies and other technology partners.

Such cooperation could signifi cantly improve exploration and production outcomes.

A 50+100-well drilling program is currently under way, with around 70 exploration wells.

Petrobangla says the program will be completed by 2030.

How effectively is the program being implemented, and how optimistic are you about its success as a geologist? Exploration and development should be planned over a 10- or 20-year horizon.

Exploration, development drilling and workovers must be integrated into a single program.

Hydrocarbon exploration cannot be judged simply by the number of wells drilled.

Targets cannot be achieved through planning and political commitment alone.

Political stability, adequate fi nancing, skilled manpower and access to modern technology are all essential.

Given the current condition of domestic gas production, exploration, development drilling and workovers must be pursued simultaneously.

Production from some of Bangladesh’s major gas fi elds is declining steadily.

Development wells and workovers are therefore essential to sustain production.

Where necessary, fi eld compression should also be installed to maintain output.

Instead of taking action only when a crisis emerges, Bangladesh needs a stable, long-term exploration and development strategy.

That is the only way to sustain existing production while adding new reserves.

The government has said that another 150well drilling program will be undertaken after the existing 150-well program.

How do you assess this plan? What should be considered when selecting locations for new exploration wells? The proposed program appears to focus largely on onshore areas, but we need a comprehensive strategy covering both onshore and offshore prospects.

We already have a good understanding of the hydrocarbon potential of Sylhet and surrounding areas.

But exploration planning should also consider areas such as the Hatiya Trough and the northwestern region.

I am encouraged by the scale of the proposed program, but the results will depend on how the locations are selected and how the program is implemented.

Areas where only 2D seismic data are available should undergo 3D seismic surveys before drilling.

We should also drill new wells in unexplored parts of known gas-bearing structures and investigate whether additional hydrocarbon-bearing zones exist in producing fi elds.

These approaches could potentially deliver gas at relatively low cost.

Deeper structures also deserve greater attention.

So far, our exploration has focused largely on conventional structures.

Future exploration should also consider stratigraphic plays.

The data from dry wells should be carefully reassessed before fi nalizing new drilling plans.

A dry well is not simply a failure; it can provide valuable information about the geological system.

Chevron has expressed interest in returning to some of the blocks it previously relinquished under the PSC.

The government also appears positive about the proposal.

Should Chevron be given an opportunity to invest through negotiations? If a company wants to return to a relinquished block on a sole-source basis, its entire proposal must be carefully evaluated.

We need to examine the terms, the exploration program and, particularly, how the benefi ts would be shared if gas is discovered.

The government must assess how much the country would gain from such an arrangement.

However, rather than relying on a single company, bringing in several international oil companies and creating a competitive environment could be more benefi cial for Bangladesh.

Bids have been invited for oil and gas exploration in 26 offshore blocks, including 11 shallow-water blocks, with November 30 set as the submission deadline.

Two companies have already purchased bidding documents, while several others reportedly expressed interest at the London roadshow.

How optimistic are you about attracting investment and achieving offshore exploration success? Bangladesh has an offshore area roughly comparable in size to its onshore area.

Unfortunately, we have not yet achieved any major success offshore.

In contrast, neighboring India and Myanmar have made signifi cant discoveries.

Considering their experience, the Bay of Bengal is potentially one of the most promising areas for addressing Bangladesh’s gas shortage.

We need extensive exploration there.

The government’s recent initiatives and the London roadshow appear to have generated interest among investors.

But offshore exploration requires much greater investment and involves signifi cantly higher risks than onshore operations.

Therefore, it would be premature to assume investment will materialize until companies actually submit bids and commit capital.

Bangladesh also has responsibilities in attracting investment.

First, we must properly present the geological and seismic data available for the 26 blocks.

In my view, the deepwater blocks may offer greater potential than the shallow-water areas, but very little exploration has been undertaken there so far.

We must also understand that offshore exploration takes time.

Even after investment is secured, exploration, discovery, fi eld development and the construction of pipelines to bring gas into the national grid can take many years.

The new offshore PSC is attractive because it clearly defi nes the rights, obligations and potential returns of both the government and international oil companies.

I am therefore hopeful that foreign companies will participate.

Ultimately, however, the success of the bidding round will depend heavily on how effectively Bangladesh can present its geological information and exploration potential to investors.

A draft PSC for onshore exploration, including the Chattogram Hill Tracts, has reportedly been fi nalized and bidding may be invited soon.

How do you view the initiative? We have a relatively good understanding of the geology and hydrocarbon potential of eastern and central Bangladesh.

The geological structures of the Chattogram Hill Tracts, however, are considerably more complex.

This region has received limited attention for a long time.

But discoveries and exploration activities across the border in India have increased the prospectivity of the area from Bangladesh’s perspective.

Some earlier, limited exploration activities in the region also produced positive indications.

I believe there may be unconventional hydrocarbon opportunities in the Chattogram Hill Tracts.

If hydrocarbons can be discovered through systematic exploration, the region could potentially become a new source of energy supply for Bangladesh.

Before restarting exploration there, industry-academic collaboration could be useful.

At the same time, attracting foreign investment under the proposed onshore PSC would also be a positive development.

What urgent measures are needed to increase domestic gas production and make new discoveries? Bangladesh needs both short- and longterm strategies to address the current gas crisis.

In the short term, production from existing fi elds should be increased, gas discovered in Bhola should be connected to the national grid as quickly as possible, and fi elds that are currently shut down should be reassessed and brought back into production wherever economically and technically feasible.

Gas losses and wastage must also be reduced and the available gas used more effi ciently.

In the longer term, Bangladesh needs effective exploration and development programs covering the Bay of Bengal, the Chattogram Hill Tracts and other prospective onshore areas.

This requires a stable, long-term strategy implemented by a technically competent team with clear accountability.

At the same time, energy security cannot be built around gas alone.

Bangladesh needs an integrated energy strategy that accelerates renewable energy while also making appropriate use of domestic coal for power generation.

Only through such a diversifi ed and coordinated approach can Bangladesh strengthen its energy security and reduce its vulnerability to imported fuel.

The present government is confronting what could be Bangladesh’s most severe electricity and fuel supply crisis, rooted largely in years of inadequate planning for the exploration and development of domestic primary fuel resources.

The gas supply crisis that existed before the BNP-led government assumed power was further aggravated by the US-Israel war against Iran.

Bangladesh’s growing dependence on imported energy- particularly LNG and liquid fuels from the Middle East-has left the country highly exposed to international price and supply shocks.

The closure of the Strait of Hormuz severely disrupted supply chains, while LNG imports under long-term contracts with Qatar and Oman were completely halted.

Bangladesh is now importing LNG from the spot market at almost three times the previous price.

The crisis was further intensifi ed when one of the country’s two fl oating LNG terminals was forced out of operation for more than three weeks following a fi re.

Gas and electricity supplies to all categories of users were severely affected.

Domestic consumers suffered from disruptions in cooking fuel supplies, CNG users faced shortages at fi lling stations, and the country experienced unprecedented power load-shedding.

Industries were hit hard by shortages of both gas and electricity.

Faced with the crisis, policymakers adopted a number of emergency measures.

The Prime Minister and State Minister for Energy have also announced mid- and long-term plans to achieve sustainable energy security.

This report assesses and analyzes those initiatives.

Expediting Petroleum Resources Exploration Programs The Awami League government had been proceeding with a plan to drill 50 and 100 wells.

The interim government, without making alternative arrangements, canceled all contracts and ongoing negotiations initiated during the Awami League regime.

During its one-and-a-half-year tenure, the gas defi cit widened to an alarming level.

The BNP-led government started with a gas defi cit of 1,200-1,400 MMCFD.

The new government has done everything possible to expedite the drilling projects of BAPEX, BGFCL and SGFL.

Some progress has been made, and some good news is expected soon.

The government has also announced initiatives to conduct seismic surveys to identify new resources for future drilling programs.

Experts have suggested mobilizing BAPEX rigs at Chhatak and Tengratila on a priority basis to monetize the gas resources there.

They have also suggested commencing exploration of potential gas resources in fi ve identifi ed areas in the greater Chittagong Hill Tracts.

The government remains uncertain about how to evacuate Bhola’s discovered gas resources to the national grid.

A properly executed plan could connect Bhola’s gas resources to the national grid at Khulna via Barishal within three years.

Khulna has anchor load, while the Barishal and Khulna regions have signifi cant potential for developing agriculture-based industries.

A gas transmission pipeline in the region would also encourage investors to explore there.

The government must declare the pipeline project a top-priority national project and engage a competent EPC contractor as soon as possible to execute it in challenging terrain.

Engaging IOCs under PSC Bangladesh’s image as a host country for PSC operations has not encouraged potential international oil companies (IOCs) to participate in offshore bidding in the Bay of Bengal.

The issues that led to the change of government in 2024, followed by what has been described as mob terrorism, have created a sense of insecurity among the investment community.

We are not sure the government will achieve much from the scheduled roadshows in Singapore, London and New York.

Experts have suggested organizing an international conference in Dhaka and inviting interested IOCs.

The updated Model PSC contains attractive provisions.

However, IOCs remain concerned about the prolonged, multistage decision-making process.

Records of mismanaging PSCs and arbitration cases also act as negative catalysts.

Still, we expect some participation by major IOCs and the quick conclusion of PSCs.

Experts have suggested offering PSCs for onshore blocks outside BAPEX’s ring-fenced areas.

Bangladesh may discover 2-5 Tcf of new gas from onshore exploration if 10 exploration rigs, operated by BAPEX and IOCs, can work in tandem from the end of 2027.

LNG Import Initiatives The government is negotiating a new FSRU with a Chinese company.

Some controversies have already arisen over the proposal and require clarifi cation to ensure transparency.

The government may also review the contract for a third FSRU with Summit Energy, which the interim government canceled without valid reasons.

The government must also expedite construction of the land-based LNG terminal at Matarbari.

Bangladesh must not increase LNG imports beyond 5,000 MMCFD, as LNG prices are likely to remain prohibitively high amid wars and confl icts across the globe.

The government must also explore alternative sources of LNG from Indonesia, Malaysia, Brunei and Australia under long-term contracts.

Some storage facilities may also be developed to hold at least two months’ LNG demand, allowing Bangladesh to take advantage of lower prices in the spot market when available.

Proposals to set up FSRUs at Khulna and Barishal and to import LNG in ISO tanks would be a waste of time.

Fuel Utilization Strategy Sooner or later, Bangladesh will have to review the use of gas for cooking, transportation and even power generation.

Gas should be prioritized for fuel-effi cient industries and fertilizer plants.

LPG may be subsidized to bring its price closer to that of gas for domestic use before gradually phasing out gas supplies to domestic consumers and transport.

Power generation during the transition period can rely on coal, nuclear power, LNG and electricity imports until renewable energy grows suffi ciently as part of a smart energy transition.

Bangladesh must gradually move toward second- and third-generation fuel-effi cient industries.

Coal Reserve Exploitation Domestic coal must receive top-priority national attention.

Environmentally acceptable, proven technologies are available for exploiting high-quality coal deposits buried at mineable depths.

A decision now could assist in establishing at least 5,000MW of new domestic coal-based power generation by 2031.

There should be no major issues with mine-water management; agricultural land can be progressively rehabilitated, and mine-affected communities can be adequately compensated and resettled.

Restructuring Petrobangla and Companies Petrobangla is responsible for exploring, developing and supplying primary fuel.

It must be redeveloped as a Grade-A corporation without delay.

Only line professionals with relevant academic degrees and proven track records should be placed in top positions to reestablish Petrobangla’s credibility as a fl agship corporation in the energy sector.

Retired competent Petrobangla offi cials, researchers and business leaders should be included on the boards of directors of Petrobangla and its companies instead of inexperienced bureaucrats.

The pay scales of Petrobangla company offi cials must be commensurate with their tasks and responsibilities.

There must also be provisions for rewards and penalties based on achievements and failures.

One must remember that Bangladesh does not have an abundance of competent offi cials in the energy sector.

No one should be victimized because of political faith or belief.

The Prime Minister may invite former chairmen and senior executives to share their views on a road map for recovering from the present energy crisis

The world is entering a period of profound uncertainty.

Wars, geopolitical rivalry, trade tensions, climate change, debt pressures and technological disruption are reshaping the international system faster than its institutions can adapt.

The 81st session of the United Nations General Assembly (UNGA 81) offered a revealing snapshot of this transition.

The message for Bangladesh is particularly important.

As a climate-vulnerable developing country approaching LDC graduation, Bangladesh depends heavily on an international system capable of delivering predictable trade access, development fi nance, climate funding, technology transfer, and humanitarian support.

The prolonged Rohingya crisis adds another dimension to that dependence.

UNGA 81 demonstrated both the continuing relevance and the limitations of multilateralism.

Nearly 200 delegations participated in the General Debate, yet geopolitical divisions and the absence of several major leaders highlighted the diffi culty of translating international consensus into collective action.

For Bangladesh, this changing global order calls for a more strategic approach to international diplomacy.

Climate fi nance, LDC graduation, energy security, trade, investment, technology and the Rohingya crisis should not be treated as separate diplomatic priorities.

They are increasingly interconnected elements of the country’s economic and national-security interests.

Bangladesh should therefore remain fi rmly engaged with multilateral institutions while pressing for reforms that better refl ect the concerns of developing countries.

At the same time, it must strengthen its own capacity to negotiate, analyze global trends and build diverse economic and diplomatic partnerships.

The future of multilateralism remains uncertain.

But for Bangladesh, effective international cooperation is not an abstract ideal.

It is a practical national necessity.

PTTEP and a Petronas subsidiary have secured a 35-year production sharing contract (PSC) for Block A-18-01 in the Malaysia-Thailand Joint Development Area (MTJDA).

The PSC was awarded to PTTEP subsidiaries PTTEP JDX Thailand (JDA) Ltd.

and PTTEP JDX Thailand Co.

Ltd., and Petronas Carigali’s subsidiary PC JDA Ltd., with each holding a 50% participating interest.

The contract is effective from January 1, 2026.

Block A-18-01 covers the existing Block A-18 area as well as additional exploration zones and has estimated gas production potential of 300-400 MMCFD.

Production will be shared equally between Thailand and Malaysia.

Gas supplied to Thailand is expected to meet around 4% of the country’s natural gas demand, mainly supporting power generation in southern Thailand.

The partners plan to expand exploration and development activities to sustain production.

PTTEP CEO Montri Rawanchaikul said the block could benefi t from shared infrastructure and resources with nearby Block B-17-01, where the partners also have interests.

The two blocks currently produce about 700 MMCFD of natural gas.

Gastech 2026 concluded in Bangkok with major announcements on LNG, gas infrastructure and upstream development, prompting Greenpeace Thailand to warn that the country risks deeper dependence on imported fossil gas.

During the event, Thailand announced its 26th petroleum exploration bidding round, covering more than 60,200 square kilometers of deepwater areas.

The country is also expanding LNG import capacity from 19 million to 27 million tonnes per year as it seeks to strengthen its position as a regional energy hub.

According to Gastech organizers, agreements and investment commitments worth an estimated $40 billion were announced or advanced during the event, covering LNG supply, power generation, upstream projects, petrochemicals, shipping and gas infrastructure.

Greenpeace Thailand, however, highlighted the economic risks associated with greater LNG dependence.

Thailand currently generates about 30% of its electricity from LNG, with around half of its LNG purchases coming from the spot market

The Bangladesh Power Development Board (BPDB) has undertaken projects to develop 689 MW of grid-connected solar power by 2030 using its own fi nancing, as the country moves to expand renewable energy generation.

The BPDB has submitted a detailed proposal for a 442-MW solar project at Rampal to the government for approval.

It is also working on a 222MW grid-connected solar photovoltaic project at Sonagazi in Feni, targeted for completion by 2028.

The state-owned power board has already installed 688 kWp of rooftop solar capacity using its own funds between November 2025 and Sept.12, 2026.

Another 4,195 kWp of rooftop and grid-connected solar capacity is expected to come into operation by December this year.

The projects are being developed on unused BPDB rooftops and land and are intended to help reduce dependence on imported fossil fuels while supporting Bangladesh’s renewable-energy and climate commitments.