Category: Energy and Power

Government is set to impose a new surcharge on the sale of oil, gas, coal, and stone for collecting capital to introduce a new ‘Social Development Fund (SDF) Policy-2025’ run by Petrobangla, the Energy and Mineral Resources Division, or boards of relevant mining companies.

officials expect the fund to generate substantial annual revenue, a small surcharge of Tk 0.03 per cubic meter could yield around Tk 92 crore annually for research and development initiatives in energy sector.

in 2009, Bangladesh Energy Regulatory Commission (BERC) directed the concerned authority to form Gas Development Fund (GDF) to finance exploration and development of Bangladesh’s gas sector, especially the gas exploration activity, unfortunately, it did not happen, it were diverted for other uses, including LNG imports, although people are paying Tk 0.46 surcharge per cubic meter of gas for the development of its own gas. ‘GDF was created for supporting domestic companies such as BAPEX, Sylhet Gas Field Company, and Bangladesh Gas Fields Company in expanding production,’ an official said. However, SDF will be financed from a share of the unit sale price of gas, oil, and minerals as determined periodically by the Energy and Mineral Resources Division and BERC.

the fund will also earn interest on accumulated capital, the official said quoting the draft of the policy.

Summit Oil and Shipping Company Limited (SOSCL), a subsidiary of Summit Group, has filed a writ petition with the High Court (HC) challenging the g o v e r n m e n t ‘ s cancellation of its long-term liquefied natural gas (LNG) supply contract.

the petition seeks a rule asking the respondents to explain why the cancellation order, issued by Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) on September 1, should not be declared illegal.

it also requests a stay on the operation of the cancellation memo until the court disposes of the rule. Respondents named in the petition include the secretary of the Energy and Mineral Resources Division, the law secretary, the secretary of Petrobangla, and the secretary of Rupantarita Prakritik Gas Company Limited.

according to the petition, Petrobangla formally notified SOSCL of the contract cancellation on September 1. Barrister Karishma Jahan, counsel for SOSCL, said the hearing on the petition may take place soon.

Electric aircraft maker Beta Technologies filed for an initial public offering in the United States recently, the latest company to join the rush to tap a record-breaking bull run in the equity market.

easing trade tensions, robust stock markets and pent-up investor demand have combined to create one of the busiest windows for listings in years, with technology, aerospace and green energy firms leading the charge. Beta Technologies designs, manufactures and sells highperformance electric aircraft, advanced electric propulsion systems, charging systems and components.

electric aviation remains a niche segment of the transportation industry, with only a handful of companies developing and testing commercial aircraft. ‘Beta’s IPO plays into two narratives that are resonating with investors: the long-term electrification trend and renewed appetite for selective growth stories,’ said Kat Liu, vice president at IPO research firm IPOX. Beta Technologies, citing internal estimates, said operating costs for its aircraft are 42% lower than conventional planes, thanks to a simplified design.

India’s transport fuel demand rose to 2.85mn b/d in September, up by 4pc on the month as the monsoon receded in most parts of the country starting from midSeptember and demand picked up ahead of the country’s festive season.

the country’s transport fuel demand was up by 6pc on the year in September, preliminary oil ministry data show. Diesel demand rose by 7pc on the month to 1.68mn b/d in September, while gasoline demand fell marginally by 1pc to 953,442 b/d as state refiners offered cargoes for exports. Demand for diesel and gasoline were higher by 6pc and 7pc, respectively, on the year. Indian state-controlled refiner MRPL offered a record number of gasoline cargoes in August for September-loading, as the monsoon season had weighed on domestic demand. Demand for jet fuel rose by 5pc on the month to 188,069 b/d as air travel picked up, after the monsoon receded in most parts of India. But demand for jet fuel was lower by 1pc than the 190,696 b/d in September 2024.

Chief Adviser Prof Muhammad Yunus recently called on UN-Habitat to expand its presence in Bangladesh to help develop sustainable and affordable housing solutions for communities frequently impacted by climate-induced disasters. Prof Yunus made the remarks during a meeting with Under-Secretary-General and Executive Director of UN-Habitat, Anacláudia Rossbach, on the sidelines of the UN General Assembly in New York.

they discussed a wide range of issues, including affordable housing for rapidly urbanizing areas, waste management, microfinance-based housing solutions and the global impact of climate change on vulnerable communities, said Chief Adviser’s Deputy Press Secretary Abul Kalam Azad Majumder. Prof Yunus urged UN-Habitat to develop context-specific, multipurpose housing models tailored for communities facing recurring floods, river erosion, and cyclones – disasters increasingly intensified by climate change.

It was in 1997 when Bangladesh first started importing Liquefied Petroleum Gas (LPG) amid declining availability of natural gas. Laugfs Gas Bangladesh, a company of Sri Lanka-based multinational Laugfs Holdings, was given the first permit to import and distribute LPG in cylinders to meet the growing demand in energy-starved Bangladesh. Since then, the LPG sector has witnessed an exponential increase in consumption -from 2.5 lakh tonnes in 2009 to the current 1.5 million tonnes a year.

the clean-burning fuel has earned popularity for a number of reasons.

in rural areas, it has made cooking easy and comfortable by replacing the smoke-causing wood and tree leaves. LPG is environmentally friendly too.

the more LPG is used, the greater the saving of trees and woods. LPG’s growth in Bangladesh is also attributed to the declining supply of natural gas, whose reserves (currently at 8.5 TCF) may be empty next five or six years at the current rate of use unless discoveries are made.

in the urban areas, many households with piped gas connections suffer the hazards of low or no pressure during peak cooking hours. This has led many such households to look for alternatives to the LPG cylinders. They depend on both types.

and those with no piped gas have no choice but to go for LPG in the urban areas. LPG is also widely consumed in restaurants.

the state of the LPG business and its use came under discussion at a conclave organized by Bonik Barta daily at a city hotel recently.

at the seminar, some relevant questions were raised by government leaders, experts, academics, businesspeople, importers, and distributors.

is LPG getting enough attention, given its importance? Are consumers getting a fair price for the product? Has the government built enough infrastructure (terminals) for the smooth import and distribution of LPG? Are all cylinders safe for use? LPG is the only energy product that grew without any subsidy, and it is a very competitive energy source compared to the price of other fuels and their availability, M Tamim, vice-chancellor of the Independent University, Bangladesh, told the event titled ‘LPG in Bangladesh: Economy, Environment and Safety’.

the energy expert who once served as the energy adviser of a caretaker government argued in support of LPG, saying, ‘Its cost-effectiveness, cleaner burning, ease of transportation, and secured supply have increased the industrial usage by nearly 15 percent in the last two years.’ Speaking at the conclave, Muhammad Fouzul Kabir Khan, adviser to the Ministry of Power, Energy and Mineral Resources, rightly highlighted the virtues of LPG.

it’s easy to import by lighterage vessel, he said, pointing to the advantage it holds and slamming the traders for the high price of the product. ‘But the major problem lies in its price — it needs to be reduced.

the entire LPG sector is controlled by private companies, and prices remain too high,’ he said, adding the price of a 12-kg cylinder should be below Tk 1,000, but it is more than Tk 1,200. Khan warned of drives under mobile courts to monitor whether selling rates exceed the rates fixed by the Bangladesh Energy Regulatory Commission. He stressed the need to promote LPG use in industries by reducing prices, given the ongoing crisis in piped gas supply. ‘We have limitations in LNG [liquified natural gas] import as we are nearing utilizing our full regasification facilities. But it is easier to import LPG.’ A section of politicians and their allied businessmen, working together, have created the ongoing crisis in the gas sector. ‘In the private sector, many industries were promised gas connections.

even knowing there was no gas, lines were given, unjustly, through corruption,’ he added.

azam J Chowdhury, former president of the LPG Operators Association of Bangladesh, however, disagreed with Khan’s comment about LPG pricing.

if the government can ensure a 7.0 percent profit for importers on each 12kg LPG cylinder sales, the private sector operators would hand over their businesses to the government. ‘Everyone in the business is struggling to survive, while some are selling LPG at a loss.

all of the licensees are barely breathing. Some have even been forced to shut down their operations

The Trump administration has announced plans to terminate dozens of clean energy projects and freeze billions of dollars for major projects in New York, intensifying a stand-off with Democrats over a US government shutdown.

uS media outlets described the moves announced by the energy and transportation departments as part of the administration’s efforts to pressure Democrats in Congress to agree on a deal to end the shutdown. US President Donald Trump had raced to enact hard-right policies even before the shutdown began, threatening mass firings and to slash government departments, and blaming Democrats for Congress’ failure to resolve a funding stand-off.

the Department of Energy announced earlier ‘the termination of 321 financial awards supporting 223 projects, resulting in a savings of approximately $7.56 billion for American taxpayers.’ It said in a statement that those projects — overseen by the Office of Clean Energy Demonstrations, the Office of Energy Efficiency and Renewable Energy and other bodies — ‘did not adequately advance the nation’s energy needs…

and would not provide a positive return on investment of taxpayer dollars.’

With the main objectives of creating a competitive energy market, ensuring transparency in management, operation, and tariff determination, fostering a favorable environment for private investment, and safeguarding consumer interests, the Bangladesh Energy Regulatory Commission (BERC) was established as an independent and quasi-judicial autonomous body through the enactment of the Bangladesh Energy Regulatory Commission Act, 2003, passed by the National Parliament on March 13, 2003.

as an impartial and quasi-judicial statutory organization, the Commission is committed to ensuring fair rights, good governance, and justice for all stakeholders in the electricity and energy sectors. Since its inception, the Commission has held regular open meetings and public hearings to determine rational tariffs, prevent customer harassment, introduce prepaid and EVC meters, mobile billing systems, online customer services, and annual bill payment certificates, as well as ensure proper redress for disputes related to unfair and monopolistic practices. BERC carries out its activities in accordance with Section 22 and other relevant provisions of the Bangladesh Energy Regulatory Commission Act, 2003.

activities Related to Energy Audit As per Section 22(a), the Commission has the legal responsibility to assess the efficiency of energy-using entities, evaluate the quality of their machinery and equipment, conduct regular verification, inspection, and analysis of fuel consumption through energy audits, and ensure improved energy efficiency and conservation.

to this end, the Bangladesh Energy Regulatory Commission’s Power Plant Energy Audit Regulation 2022 is under process. Despite the importance of this responsibility, no specific activities had been undertaken in this regard previously. However, to establish a Testing Institute under the BERC, the Rajdhani Unnayon Kartripakkha allocated Plot No. 1 (one bigha) on Road 203, Sector 1 of the Purbachal New Town Project.

the establishment has been delayed due to the non-handover of the allocated plot. A stakeholder workshop for establishing the testing laboratory has already been completed.

the process of assessing the efficiency of captive license-holding entities has also begun.

activities Related to Tariff According to Section 22(b), the Commission is legally responsible for determining reasonable tariffs, improving efficiency, and ensuring safety in electricitygeneration, transmission, marketing, supply, storage, distribution, and service quality.

the Commission determines wholesale (bulk), transmission (wheeling), and retail tariffs for electricity.

it also sets transmission and distribution tariffs for gas and determines consumer-end gas prices. Additionally, the Commission determines the tariff for LPG and Jet A-1 (aviation fuel) and has initiated tariff determination for furnace oil supplied by BPC.

in April 2025, tariffs for new, promised, and existing (excess load users) consumers under the industrial and captive power categories were revised.

activities Related to Licensing As per Section 22(c), the Commission has the legal obligation to issue, cancel, amend, or modify licenses, set licensing conditions, and grant or revoke exemptions from licensing requirements. Under Section 27 of the Act, BERC issues licenses for various categories. Captive generators with capacities exceeding one megawatt are required to obtain a license, while generators of one megawatt (1,000 kW) or less must obtain a waiver certificate.

in FY 2024-2025, the Commission issued a total of 221 licenses and waivers in the electricity sector, 273 in the gas sector, and 408 in the petroleum sector, totaling 902 licenses and waivers across all three sectors.

activities Related to Scheme Approval According to Section 22(d), BERC is legally mandated to approve new investment or project proposals of licensees such as Petrobangla, BPDB, and BPC, considering their financial capabilities. No previous commissions had exercised this authority or received approval requests under this provision.

the present Commission, however, took steps in this regard and, on May 7, 2025, issued letters to all government licensees requesting lists of their current and planned projects. Several licensees have already submitted their lists, and the approval process has commenced.

activities Related to Codes and Standards Under Section 22(e), the Commission has the legal duty to develop and enforce codes and standards to ensure quality assurance.

accordingly, the Bangladesh Energy Regulatory Commission (Electricity Grid Code) Regulations, 2023 have been enacted.

the formulation of the Electricity Distribution Codes and LPG Codes, and Standards is ongoing. for gas sector organizations and companies was completed on February 28, 2025. Implementation of the software in gas companies will begin soon.

in 2024, the Uniform System of Accounts (Electricity) 2024 was developed for electricity sector organizations and companies.

activities Related to Dispute Resolution Under Section 22(g), the Commission is legally responsible for resolving disputes between licensees and between licensees and consumers and, if deemed necessary, referring them to arbitration.

according to Section 40 of the Act, notwithstanding anything in the Arbitration Act, 2001, or any other law, disputes between licensees or between licensees and consumers must be referred to the Commission for resolution. During FY 2024-2025, the Commission received 49 dispute applications, of which 42 were resolved through hearings and orders issued.

additionally, under Section 56 of the Act, consumer complaints against licensees are resolved following prescribed procedures. Participation in the South Asia Forum for Infrastructure Regulation (SAFIR) To enhance regional cooperation in the energy sector among South Asian countries, the South Asia Forum for Infrastructure Regulation (SAFIR) was established in 1999. However, due to limited activity within SAARC, SAFIR’s achievements remain modest.

on December 12, 2024, Mr. Jalal Ahmed, Chairman of BERC, attended the 27th Executive Committee Meeting (ECM) and the 30th Steering Committee Meeting (SCM) held in Delhi, India.

internal Training, Seminars, and Workshops To enhance the skills of BERC’s officers and staff, 14 internal training sessions and 5 workshops/seminars were organized during FY 2024-2025.

it has been decided to hold at least one seminar/workshop every month.

in June 2025, the BERC signed an MoU with the Energy Centre of the Texas Agricultural and Mechanical University, USA.

under this MoU, the BERC is in the process of holding a symposium in January 2025. Initiative to Introduce ERP Software To digitize office operations and establish a paperless environment, BERC has taken an initiative to introduce ERP software for its overall administrative management. Relocation of the Commission Office To ensure improved customer service and a more conducive work environment, the BERC office was relocated from the Trading Corporation of Bangladesh (TCB) building to the IEB Building, Ramna, Dhaka, on June 22, 2025.

The Asian Development Bank (ADB) has signed a $30 million sustainabilitylinked loan facility agreement with Envoy Textiles Limited, marking ADB’s first such loan in Bangladesh.

the financing will support the design and construction of a new automated, energy-efficient spinning unit at Envoy’s manufacturing plant in Jamirdia, Mymensingh, boosting the company’s annual yarn production capacity by 4,550 tonnes.

the loan will also finance the installation of 3.5 MWp rooftop solar panels and refinance short-term local working capital loans. Sustainability-linked loans are performance-based debt instruments tied to predefined key performance indicators, assessed against sustainability performance targets. For Envoy, these include rooftop solar generation capacity and greenhouse gas emission reductions.

Of the many problems plaguing the energy sector, unaccountedfor gas (UFG) or system loss is certainly a significant one.

it constitutes a direct financial loss at a time when the government has to provide subsidies, and does not have enough foreign currency to purchase LNG. System loss is an ageold problem in Bangladesh, as it is in many developing countries. Unpublished data for 11 months of the latest fiscal year (FY 2024-25) from Petrobangla reveal that the total system loss based on the difference between gas entering the national grid and gas sold to customers is 7.77%.

if this is the only loss, it wouldn’t be too bad.

the problem arises with the hidden loss in the domestic or residential sector. Since this sector is predominantly unmetered and consumers pay a flat fee according to the number of burners, the question that logically arises is: how is the amount of gas consumed by this sector determined? The gas shown as consumed is calculated using a hypothetical consumption per burner. The data from the gas consumption of metered customers indicate that this figure is an overestimation. Petrobangla, in their annual gas consumption data for FY 2023-24, has shown a gas consumption of 11% in this sector. Knowledgeable insiders strongly believe this cannot be more than 8%.

therefore, nearly 3% gas is unaccounted-for (UFG).

this UFG is in addition to the 7.8% normally shown in annual reports.

thus, the actual gas loss exceeds 10%. Table 1 presents a historical picture of system loss from the FY 1994-95 to the present.

the first noteworthy thing is that the system loss has increased from 5-6% in the late 1900s/early 2000s to 7-8% in recent years.

the second is that in volume terms, the gas loss has gone from around 25 Bcf to nearly 80 Bcf. Before 2017, the gas loss was something no one worried much about because gas was cheap, and it was thought we would comfortably cross 2030 before any shortage was felt. This belief was shattered in 2015 when the gas shortage started to bite, especially in the industrial sector.

the reason oilfired power plants were introduced was precisely because we could not supply enough gas to our gas-fired power plants. This crisis was considered so serious that power plants started to be built having dual-fuel capability – oil and gas.

today, as a result of the huge scarcity of gas, even a 1% system loss must be looked upon with great seriousness. Moreover, the financial implications of gas loss must be computed in terms of the cost of importing LNG. Petrobangla data on gas sector system loss between the years 2006-07 and 2018-19, nearly 12 years, is unreliable. During this period, gas pressure at the customers’ meters would fall to dramatically low values.

under these pressures, the old meters gave erroneous readings because the meters assume the designated pressure of 15 psig is available.

this resulted in over-billing of hundreds of customers. As a result, instead of system loss, Petrobangla’s data showed system gain. This metering error continued for a long time.

this has been corrected for all the larger distribution companies (Discoms), but the smaller distribution companies still have metering errors.

as a result, their gas situation, even in FY 2023-24, shows system gains (see Table 2). Since system gain is a physical impossibility, hundreds of customers are being overcharged, and theft of gas is continuing undetected. Petrobangla has recently released the financial loss due to UFG or system loss company-wise (Table 2).

it estimates that Tk 3,790 crores is lost as a result of UFG. The financial loss is calculated using a gas price of Tk 18.6 per cubic meter, which is the average price of gas for Petrobangla (LNG gas price + domestic gas price). If this loss is calculated at the full LNG import price, the loss will exceed Tk 12,000 crores or nearly USD 1.0 billion. Note UFG – Unaccounted-for Gas; MMcm – million cubic meters One always hears the name of Titas when it comes to system loss, but it is interesting to note from Table 2 that Bakhrabad has the highest loss at 10%. This is an unacceptably high distribution system loss.

another interesting thing that has come to light in recent times is the GTCL system’s loss of 2%. Such a high transmission loss is unusual, to say the least.

this implies that even before the gas reaches the distribution companies, 2% of the gas handled by GTCL, worth approximately Tk 1,000 crore, is lost. At the full LNG import price, the UFG is worth at least Taka 3,000 cores. Each cargo of imported LNG costs approximately Tk. 500 crore.

that means the equivalent of nearly 6 cargoes of LNG is lost in the transmission network operated by GTCL.

if UFG is assumed to be a metering error, such a high metering discrepancy is technically extremely difficult to explain. Since theft from the high-pressure transmission lines would be highly challenging, to explain this phenomenon to everyone’s satisfaction, Petrobangla needs to investigate this with due importance. The actual system loss of the distribution companies, especially Titas and Bakhrabad, is much more than revealed by the data in Table 2.

this is because these larger distribution companies supply a lot of gas to bulk users, i.e., the gasbased power plants and fertilizer plants. There is very little or no system loss in the supply to these customers.

if the gas supplied to these bulk users is deducted from the total supplied by the discoms, then the actual performance with regard to gas loss emerges. For example, in FY 2023-24, a total of 992 Bcf of gas was supplied, of which 75 Bcf was UFG, 545 Bcf, and 51 Bcf were supplied to gasbased power plants and fertilizer plants, respectively.

therefore, 992-545-51 = 396 Bcf of gas was distributed by the distribution companies to non-bulk users, i.e., industries, CNG stations, commercial institutions, and domestic customers.

the loss of 75 Bcf of gas shown for 2023-24 occurs in these sub-sectors.

therefore, the actual loss is approximately 18.9% (75/396). A long time back, there was a study of gas loss according to feeders (pipelines serving areas); some feeders with a high percentage of residential and small commercial/industrial customers were found to have a loss exceeding 30%. This clearly indicates the problem of distributing gas to densely packed areas. Table 3 shows the mean UFG (system loss) in various regions of the world.

as can be seen, the average system loss of the world’s natural gas transmission and distribution infrastructures is only 1.67%. However, high system losses do exist, but very high system lossesare becoming rare.

the countries with the highest UFG percentages are Myanmar (15%), Syria (13.8%), Pakistan (11.7%), and South Africa (8%) (Ravalec et al., 2025).

it should, however, be noted that two of the high system loss countries are embroiled in civil wars, while the other two are countries that have never been able to manage their energy sector well. Table 3: UFG (System Loss) from Natural Gas Transmission and Distribution Network in 2021 Source – Global methane emissions from natural gas transmission and distribution networks Geoffroy Hureau, Armelle Lecarpentier, Sylvain Serbutoviez, Jean Kaniewicz, Mike Madden, Chris Brooks, Aileen Robertson, Colin Harrison, Chris Langston and Mickaele Le Ravalec Sci.

tech.

energ.

transition, 80 (2025) 28 DOI: https://doi.org/10.2516/stet/2025007 Countries with moderate system losses are Russia (2.0%) and the USA (2.1%) (Ravalec et al., 2025).

it is worth pointing out that at one time, Russia was a big methane emitter with pipeline losses exceeding 10%. With regards to the USA, the average of 2.1% comes from a spread of 1-4%.

the average system loss of developed countries, as reported by Eurostat, is 0.5%. Several EU countries have system losses below 0.5%.

these system loss data point to one unmistakable fact, and that is Bangladesh’s gas system loss is very high.

the fact that some countries have similar high losses is no excuse to continue this bad performance. The fact that Petrobangla is being transparent by revealing the financial losses of its distribution and transmission companies is indeed praiseworthy. Moreover, they have initiated measures to reduce UFG, including disconnecting illegal connections.

the problem is monumental, and it is certainly not possible to bring down the system loss to the global average of 1.67% considering the poor state of the distribution pipelines, especially within Dhaka city, and the numerous socio-economic constraints, but a 4.0% UFG and the elimination of theft through illegal connections in the domestic sector are targets that can be set.

the future of sustainable gas supply in Bangladesh depends on reducing UFG to levels that will meet the expectations of the people.