Category: Energy and Power

Bangladesh has formally launched the Invest Bangladesh Authority, bringing the Bangladesh Investment Devel pment Authority (BIDA), Bangladesh Economic Zones Authority (BEZA) and PublicPrivate Partnership Authority (PPPA) under a single institutional framework.

The government made the Invest Bangladesh Act, 2026 effective through a gazette notifi cation on August 20.

The new authority will function under the Prime Minister’s Offi ce as the country’s apex investment development agency.

The merger aims to provide investors with faster and more coordinated services by bringing investment promotion, economic zone development and publicprivate partnership activities under one roof.

It will also introduce a unifi ed digital platform for investmentrelated approvals, licenses and clearances.

Invest Bangladesh will focus on attracting domestic and foreign investment, identifying investment opportunities, removing regulatory barriers and coordinating with relevant government agencies.

The authority will also facilitate industrial zone development and PPP projects.

Malehul Salehin Prottoy, a Class Ten student of Rajshahi Cadet College, has returned to Murmansk, Russia, after successfully completing Rosatom’s seventh International Scientifi c and Educational Expedition, ‘Icebreaker of Knowledge.’ Prottoy spent more than 10 days aboard the nuclearpowered icebreaker 50 Let Pobedy, travelling with talented high school students from around the world along the route Murmansk-North Pole- Franz Josef Land-Murmansk.

The expedition marked a historic milestone as the 200th expedition by a surface vessel to reach the North Pole.

‘From a dream to the top of the world, my journey aboard the Icebreaker of Knowledge was unforgettable,’ Prottoy said.

‘I met people from 22 countries, experienced 22 different cultures and heard 22 languages.

I also learned from experts in marine biology, nuclear physics, artifi cial intelligence and many other fi elds.

The Arctic gave me knowledge, friendship and memories that I will cherish forever.

Experts at a recent policy roundtable called for scrapping unfair energy agreements, making greater use of domestic resources and reducing Bangladesh’s dependence on imported fuel to overcome the country’s energy crisis.

They also stressed expanding renewable energy, strengthening energy sovereignty and ensuring transparency and accountability in the energy sector.

The views came at a roundtable titled ‘Navigating the Energy Transition: Foreign Policy Alignment and Geopolitical Resilience’ held at Hotel InterContinental Dhaka.

The Institute of Policy, Governance and Advocacy for Development (IPGAD) organized the event, moderated by its Executive Director Mostafa Hossain.

Professor Mushtaq Khan, an economist at SOAS University of London, said the current energy crisis should be viewed from two perspectives – short-term problems in energy supply and long-term structural and production-related problems.

Bangladesh’s LNG supply to the national gas grid rose to 810 million cubic feet per day (MMCFD) recently, taking total gas supply to 2,425 MMCFD, the highest level since the disruption at Excelerate Energy’s FSRU on July 21.

According to Petrobangla data, Excelerate’s FSRU supplied 300 MMCFD and Summit’s FSRU 510 mmcfd, while domestic sources provided 1,615 mmcfd.

The recovery has improved imported gas availability after the Excelerate terminal disruption sharply reduced LNG supplies and contributed to gas shortages and pressure on power generation.

Meanwhile, Petrobangla plans to increase gas allocation to the power sector to as much as 960 MMCFD, depending on overall supply and system requirements, to support electricity generation and ease load-shedding.

Bangladesh’s two operational FSRUs have a combined regasifi cation capacity of about 1,100 MMCFD.

However, total gas supply remains well below the country’s offi cial demand of around 3,854 MMCFD.

Bangladesh is seeking fresh foreign investment in offshore oil and gas exploration as worsening gas shortages increase pressure on energy security.

The government has revised its Model Offshore PSC 2026, opened 26 blocks for bidding, and planned international roadshows to attract credible investors.

However, uncertainty over the investment environment, institutional capacity and previous failed initiatives remains a concern.

The success of the latest bidding round will depend not only on improved contractual terms but also on the country’s ability to build investor confi dence Bangladesh’s latest offshore bidding round has become a test of whether the country can turn its largely unexplored maritime territory into a meaningful source of energy security.

With gas shortages deepening and LNG imports placing increasing pressure on the economy, the government is seeking fresh investment in oil and gas exploration while offering revised contractual terms and a more active international promotional campaign.

The challenge is not simply to attract bids.

Bangladesh must also convince international oil companies that its investment environment is stable, its institutions are capable, and its offshore opportunities justify the risks of long-term exploration.

The outcome of the 2026 bidding round could therefore shape the country’s energy strategy for years to come.

Petrobangla and the Energy Division are particularly hopeful about the ongoing offshore bidding round, which is scheduled to close on November 30.

However, stakeholders remain cautious because the previous bidding round, which ended in December 2024, failed to receive a single investment proposal despite considerable expectations.

Investment analysts and economists believe that foreign investors were reluctant to make long-term investments such as offshore oil and gas exploration during the tenure of the interim government.

They preferred to wait until an elected government took offi ce.

In addition, some concerns remained over the terms of the Model Offshore PSC.

New PSC and 26 Offshore Blocks Following the failure of the 2024 bidding round, the government formed a committee to identify the reasons behind the lack of bids.

Based on the committee’s recommendations, the Model Offshore PSC was updated to the 2026 version.

An international bidding process based on the revised PSC was launched on May 24, offering a total of 26 offshore blocks-15 in deepwater areas and 11 in shallow-water areas.

So far, Trkiye’s Turkish Petroleum Corporation (TPAO) and China National Offshore Oil Corporation (CNOOC) have purchased bidding documents.

According to Petrobangla sources, British Petroleum (bp), ExxonMobil and China National Petroleum Corporation (CNPC) have also been maintaining regular communication and are expected to purchase bidding documents.

Asked about the prospects, Petrobangla Director (PSC) Engineer Md.

Shoaeb said, ‘We are optimistic about receiving investment proposals from international companies this time.’ Investment Environment Remains Crucial Energy and investment analysts say Petrobangla failed to take adequate and well-planned initiatives to attract investment in offshore oil and gas exploration during the 1990s.

They believe the revised Model Offshore PSC 2026 now offers substantial economic and technical incentives to international oil companies.

Representatives of international oil companies have also acknowledged that the new PSC has become more attractive.

However, analysts stress that favorable contractual terms alone are not enough.

The overall investment environment is equally important for foreign investors.

With an elected government now in offi ce, some of the uncertainty surrounding Bangladesh’s investment environment has eased.

However, no comprehensive campaign to continuously attract investors to the country’s offshore oil and gas sector had been launched until recently.

Analysts have particularly pointed to the absence of a full-time chairman at Petrobangla for nearly six months, saying the situation could affect sustained efforts to attract international investment, as Petrobangla is the focal point for offshore exploration.

Government Steps Up Investment Promotion Offi cials of the Energy Division, however, reject allegations that the government has been unprepared to promote the offshore bidding round.

They said Prime Minister Tarique Rahman called for investment in Bangladesh’s oil and gas exploration sector during his visits to Malaysia and China.

The Foreign Minister also sought investment during visits to various countries.

Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmood and State Minister Anindya Islam Amit have also urged international companies to invest in oil and gas exploration in Bangladesh during their overseas engagements.

Bangladesh missions in North America and Europe have also been asked to convey investment opportunities to potential companies.

At the same time, Petrobangla has invited companies from different countries with expertise in offshore exploration to participate in the bidding process.

Three International Roadshows Planned The government has also adopted a planned international promotional strategy to attract investment in Bangladesh’s offshore oil and gas sector.

Petrobangla’s consultant Wood Mackenzie, which was involved in preparing the draft Model Offshore PSC, has also been appointed as a consultant for the investment promotion campaign.

Three promotional events are planned in London, Houston and Singapore.

As part of the campaign, a Petrobangla delegation will make a special presentation at the World Energy Summit in London on September 29- 30.

A large number of global energy companies are expected to attend the upstream-focused event.

A dedicated session will present Bangladesh’s offshore bidding opportunities to potential investors, followed by meetings between interested companies and offi cials from the Energy Division and Petrobangla.

The delegation will be led by State Minister for Energy Anindya Islam Amit and Invest Bangladesh Executive Chairman Ashik Chowdhury.

Petrobangla’s second roadshow will be held in Houston, the United States, on October 5-7.

Sources said around 40 international oil and gas companies are expected to participate.

Following the formal presentation, one-on-one meetings will be held with interested companies.

The fi nal roadshow is scheduled to take place in Singapore on October 15-16.

Bangladesh will participate in a special session at an oil and gas sector conference to highlight investment opportunities in the Bay of Bengal.

Petrobangla and Energy Division offi cials will subsequently hold one-on-one meetings with interested companies.

What the Model Offshore PSC 2026 Offers The international tender for exploring and producing oil and gas from 15 deepwater and 11 shallow-water blocks was fl oated on May 24, with bids to be submitted by November 30.

The price of the bidding document has been set at US$7,000.

The previous offshore bidding round was launched in March 2024.

Seven internationally renowned companies, including US-based ExxonMobil, purchased bidding documents, while two companies also purchased data from Petrobangla.

However, amid the political situation and other uncertainties, none of the companies ultimately submitted bids.

As a result, the 2024 offshore bidding round was eventually declared abandoned.

The government now hopes that the revised PSC, improved investment climate and international promotional campaigns will help attract credible international investors to Bangladesh’s largely unexplored offshore resources and open a new chapter in the country’s oil and gas exploration.

Offshore Model PSC 2026 Offers More Attractive Terms for Global Energy Investors Offi cials from Petrobangla and the Energy Division say the Offshore Model Production Sharing Contract (PSC) 2026 incorporates policies and practices followed by leading energy-producing countries, making Bangladesh’s offshore investment framework more attractive from both technical and commercial perspectives.

Under the new PSC, natural gas prices will be linked to international Brent crude oil prices.

Gas will be priced at 10.5 percent of the Brent crude price for shallow-water offshore blocks and 11 percent for deepwater blocks.

Floor and ceiling price mechanisms have also been introduced to protect both investors and the government from excessive market volatility.

A new provision has been included for deepwater pipeline transportation.

If gas is discovered in shallow- or deepwater blocks, high-pressure subsea pipelines may be required to transport processed gas to onshore facilities.

Petrobangla will be able to pay tariffs for petroleum transportation through privately constructed pipelines, allowing investors to earn a reasonable return on their investment.

The Bangladesh Labour Rules 2015 have also been amended to reduce the Workers’ Profi t Participation Fund (WPPF) contribution for fully foreignowned energy companies from 5 percent to 1.5 percent.

To encourage international oil company (IOC) participation, new geological and geophysical data packages have been prepared.

The cost of purchasing these packages has been reduced by 50 percent.

The total exploration period under the PSC will be nine years, comprising an initial six-year exploration period and a subsequent three-year period.

The initial period includes four years for geological, geophysical and seismic surveys and two years for drilling.

Under the mandatory work program, seismic surveys will be compulsory, while additional 2D/3D seismic surveys and drilling commitments will be determined through the bid work program.

The PSC requires bank guarantees of US$3 million for four years of geological and geophysical work, US$20 million for the two-year drilling phase, and US$20 million for the subsequent three-year exploration period.

Investors will be allowed to recover 100 percent of exploration and development costs in both shallowand deepwater blocks, although annual cost recovery will be capped at 75 percent of production revenue.

The government’s profi t-sharing entitlement will range from 40-65 percent in shallow-water blocks and 35-60 percent in deepwater blocks.

A mandatory 10 percent carried interest for BAPEX will apply to shallow-water blocks.

The PSC also provides tax benefi ts, including duty-free imports of equipment and materials used in exploration and development activities.

Petrobangla will bear the contractor’s corporate income tax obligations.

If oil is discovered, its price will be determined based on prevailing fair market prices in South and Southeast Asia.

Contractors will be allowed to sell their share of gas to third parties in the domestic market, subject to Petrobangla’s right of fi rst refusal.

If no domestic buyer is available, contractors will have the right to export the gas.

Investor protection provisions include stabilization and antiexpropriation clauses.

The PSC sets a commercial discovery bonus of US$3 million, while production bonuses range from US$500,000 to US$6 million for gas and US$500,000 to US$4 million for oil.

Contractors will also contribute US$0.10 per barrel of profi t oil and US$0.004 per MCF of profi t gas for research and development activities.

Annual contract service fees will be US$200,000 during the exploration and development phase and US$300,000 during the production phase.

Annual training contributions will be US$150,000 during exploration and development and US$200,000 during production.

The production period will be 25 years for gas fi elds and 20 years for oil fi elds.

These terms may be extended by an additional 10 years if commercial production continues.

Offi cials believe the revised Offshore Model PSC 2026 will strengthen investor confi dence and help attract international energy companies to explore the Bay of Bengal’s untapped oil and gas resources, supporting Bangladesh’s long-term energy security.

Onshore PSC Also Awaiting Final Approval Alongside the Model Offshore PSC 2026, Petrobangla has also fi nalized a draft Model Onshore PSC.

However, due to various objections raised by the Law Ministry, the Energy Division has not yet been able to fi nalize the document and send it to the Cabinet for approval.

Under the proposed Onshore PSC, gas prices will be linked to oil prices.

The price of onshore gas has been proposed at 8 percent of the Brent crude price per unit, while other incentives and provisions have largely been modeled on the offshore PSC.

Experts believe that if the Onshore PSC could be fi nalized before the upcoming international roadshows, it could also have been presented to potential investors.

This would have allowed Bangladesh to begin promotional activities for onshore investment ahead of launching the bidding round.

They also stressed the need to urgently update the onshore block map and open the blocks for investment alongside fi nalizing the PSC.

Vast Offshore Potential Remains Untapped Following the settlement of maritime boundary disputes with Myanmar in 2012 and India in 2014 through international courts, Bangladesh established its sovereign rights over more than 118,813 square kilometers of maritime territory.

However, successive governments have failed to make effective use of this promising offshore area for oil and gas exploration.

The interim government also followed a similar path, leaving the country’s offshore potential largely unexplored.

Myanmar has been producing gas for years from fi elds located on its side of the maritime area adjacent to Bangladesh, raising expectations that Bangladesh could also have signifi cant hydrocarbon resources in its offshore territory.

Previous Offshore Exploration Efforts In 2008, Bangladesh signed contracts with US-based ConocoPhillips for offshore blocks DS-10 and DS-11.

The company later sought amendments to some terms, including an increase in the gas price.

When Bangladesh did not accept its proposals, ConocoPhillips withdrew from the projects in 2014.

Under the 2012 offshore bidding round, Petrobangla signed agreements with ONGC Videsh Limited for blocks SS-4 and SS-9.

In 2017, Petrobangla awarded block SS-12 to international oil company POSCO Daewoo.

The company subsequently relinquished the block in 2020.

Before the 2024 bidding round, Bangladesh’s previous offshore tender had been invited in 2016.

Although the PSC was updated in 2019, no fresh bidding round was launched.

It took the Awami League government several years to update the Production Sharing Contract before fi nally inviting the 2024 tender.

Gas Crisis Deepens Bangladesh’s long-growing gas crisis has now become more severe.

Last July, the failure of one of the country’s two Floating Storage and Regasifi cation Units (FSRUs) caused gas supply to fall to around half of demand.

Although the FSRU subsequently resumed operations, LNG supply has yet to return to normal because of continuing disruptions.

At the same time, the cost of LNG imports has increased signifi cantly.

The ongoing confl ict in the Middle East is also reducing the availability of LNG under long-term contracts, increasing pressure on Bangladesh to purchase more LNG from the spot market.

Energy Shortages Hit Industry A recent Bangladesh Business Climate Survey by Policy Exchange Bangladesh and the Metropolitan Chamber of Commerce and Industry found signifi cant gaps between gas demand and supply across various sectors.

According to the survey, gas supply is 42 to 80 percent below demand in different sectors.

Industrial areas are also experiencing an average of six hours of load-shedding every day.

Energy and power shortages are disrupting industrial production by between 25 and 50 percent, depending on the region.

Overall, Bangladesh’s dependence on imported energy and electricity has reached 62.5 percent, with imports continuing to grow and the annual import bill rising steadily.

Offshore Bidding Round 2026 Crucial for Energy Security Given the changing global and regional energy landscape, experts say Bangladesh urgently needs to develop and utilize its own energy resources.

Oil and gas exploration onshore is continuing through domestic investment, but the pace has fallen short of expectations.

Although Bangladesh was among the fi rst countries in the region to initiate offshore oil and gas exploration, it has now fallen considerably behind its neighbors.

None of the initiatives taken over the past two decades has produced the expected results.

Against this backdrop, the Offshore Bidding Round 2026 has become particularly important for Bangladesh.

Experts warn that failure to attract investors this time could once again leave exploration in the Bay of Bengal uncertain.

They believe that without long-term success in developing the country’s offshore resources, Bangladesh’s energy crisis could become more acute, further increasing dependence on imported energy and putting additional pressure on the economy

Bangladesh is expected to secure an additional US$350 million World Bank loan guarantee to support LNG imports amid declining domestic gas production and volatile global energy markets.

The additional guarantee, likely to be fi nalized in October, would raise the World Bank’s total commitment to US$700 million and help staterun Petrobangla secure commercial fi nancing for LNG imports in 2027.

Petrobangla offi cials said the International Development Association (IDA) guarantee could help mobilize up to US$2.1 billion in private fi nancing over seven years.

The facility would support standby letters of credit and short-term credit lines through eight selected commercial banks, including international lenders.

The additional guarantee is expected to allow Petrobangla to open vital SBLCs by November 2026 for LNG supplies under long-term contracts, reducing the need for large upfront cash margins and lowering borrowing costs.

India needs to better integrate its rapidly expanding renewable energy sector with its coal-based power fl eet to achieve a smooth and costeffective energy transition, according to a new study by the Centre for Science and Environment (CSE).

The study, Flex to Fix: Deciphering India’s Coal Flexibilization Challenge for RE Integration, fi nds that making coal-fi red power plants more fl exible could create an additional 18-34 GW of space for renewable energy on the grid and reduce power-sector emissions by an estimated 7.66-8.37%, equivalent to around 92-101 million tonnes of CO2 annually.

CSE Director General Sunita Narain said India’s challenge is not simply to choose between coal and renewables, but to integrate the two while gradually reducing coal dependence.

Greater fl exibility in the existing coal fl eet could help balance fl uctuations in solar and wind generation and improve grid stability.

India reached 50% nonfossil-based installed power capacity in 2025, fi ve years ahead of its original 2030 target.

The upazila administration has fi ned three rolling mills a total of Tk 1.4 lakh for allegedly causing air pollution in Fatullah, Narayanganj.

The drive was conducted recently in Nandalalpur area of Kutubpur union, said SM Foyez Uddin, Upazila Nirbahi Offi cer (UNO).

He said the administration took immediate action after receiving complaints about air pollution in the area.

The fi ned establishments included Akhtar Ispat Rolling Mill and Al Baraka Steel Re-Rolling Mills.

They were penalised under Rule 8 (f) of the Air Pollution (Control) Rules, 2022.

Bangladesh needs to ensure the use of its own energy resources, including gas, coal and renewable energy, through medium- and long-term initiatives while developing the infrastructure needed for energy imports.

The country must gradually move out of the energy crisis through a combination of domestic resources, imports and effi cient management.

At the same time, the energy crisis has not yet signifi cantly affected buyers’ confi dence in the textile and readymade garment sectors.

However, if the situation persists for a prolonged period, it could eventually create a crisis of confi dence among international buyers.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Administrator and Plummy Fashions Managing Director Md Fazlul Hoque made the remarks in an interview with Energy and Power Editor Mollah Amzad Hossain.

How do you assess the current energy crisis and its impact on the industrial sector? What recommendations would you like to give the government on behalf of the FBCCI to overcome the crisis? Energy is now one of Bangladesh’s most pressing problems.

Everyone, from industries to households, is being affected.

I mean both electricity and fuel.

The crisis is affecting both export-oriented and domestic industries.

We have informally submitted some proposals to the government to help overcome the crisis, while the process of preparing formal recommendations is underway.

There is no need to reiterate our concerns about the electricity and energy situation.

Once the recommendations are fi nalized, we may share them with the media and the relevant ministries and agencies.

We will also try to meet the Prime Minister to discuss the issues.

Everyone is aware of the crisis, so there is little scope for the FBCCI to offer any historically unprecedented advice.

Nevertheless, as part of our regular responsibility, we are trying to highlight the concerns and challenges facing businesses.

Since assuming offi ce, the Prime Minister has been working with business leaders to address energy and other crises.

Is this part of the reason you are preparing your recommendations? You are right.

He began consulting with business leaders even before taking offi ce as Prime Minister.

There has been a major change since the elected government assumed responsibility, as businesses had largely been sidelined during the interim government’s tenure.

As part of this process, we have met ministers of different ministries and presented our proposals.

We are now working to consolidate these proposals into more coordinated and comprehensive recommendations.

Recently, Policy Exchange Bangladesh and MCCI jointly published the Bangladesh Business Climate Index.

It said that gas supply in different sectors is currently 42 to 80 percent below demand, while industries are facing up to six hours of load-shedding a day on average.

At the event, business leaders said there is little scope for new investment amid the current energy crisis and that even sustaining existing investments is a challenge.

What is your view? I have some reservations about that particular presentation.

Our primary responsibility now should be to keep existing industries operational by addressing their energy and other challenges.

The government should prioritize keeping existing industries running.

The reopening of closed industries and attracting new investment should be addressed later.

I do not disagree with the government’s package for bringing closed factories back into production.

If closed factories resume operations, new employment can be created with relatively little additional investment.

My concern is about the timing.

It would not be appropriate to reopen closed industries and expose them to new risks before energy supplies have returned to a reasonably normal level.

You are a major investor in the textile sector, have led BKMEA and are now the FBCCI administrator.

How do you view the current industrial crisis? In particular, what are you doing to maintain the confi dence of buyers in the readymade garment sector? I do not think a signifi cant crisis of confi dence has emerged yet.

Many people are worried about the situation, but I am a positive person and do not want to become alarmed at this stage.

There were major disruptions in energy and electricity supplies throughout August.

Despite this, exports of the textile and apparel sector grew by 13 percent during the month.

As entrepreneurs in the sector, we managed to complete our work on time and deliver products despite many limitations.

Therefore, I do not think buyers will lose confi dence quickly.

However, if the energy and electricity crisis continues for a prolonged period without a solution, and if we keep telling buyers that it will take a long time to resolve, their confi dence could eventually be affected.

In today’s world, no information can remain hidden.

Many international buyers have offi ces in Dhaka, so they are fully aware of what is happening.

The fi nance minister and other ministers have said that it could take at least two years to overcome the current gas and electricity crisis.

Indeed, a crisis that has developed over a long period cannot be resolved overnight.

But could such statements by ministers create renewed uncertainty among buyers in the apparel sector? Such statements have two sides.

They may be trying to be transparent about the situation, indicating that the energy and electricity crisis may not be fully resolved within two years.

This could also allow industries to prepare themselves accordingly.

The energy crisis is not a new issue in Bangladesh.

It has been continuing for the past six or seven years and has gradually intensifi ed.

The current situation has become more severe due to the war situation and LNG supply constraints.

If we do not present the issue in an excessively negative manner, I believe it will not create a crisis of confi dence among buyers.

The government has initiated work on a 10-year plan to ensure energy security, with priority given to domestic coal extraction, gas exploration, and expansion of renewable energy.

What initiatives should be taken to quickly implement the plans for developing and using domestic energy resources? I do not think the government is rushing to formulate the 10-year energy security plan.

The fi nance minister spoke about coal extraction at an AmCham event about 15 days ago.

He also said that a new roadmap is being prepared and will be presented.

The plan will prioritize solar and other renewable energy sources.

Coal has been a controversial issue for a long time.

Environmentalists around the world oppose coal, and the situation is becoming increasingly complicated.

At some point, it may become a global legal requirement to stop coal extraction and coal-based power generation.

Therefore, Bangladesh should develop and utilize its domestic coal resources before such a situation arises.

However, as the Prime Minister has said, coal extraction and utilization must be carried out only after strictly ensuring all necessary measures, including resettlement of affected people, environmental protection, and proper water management.

Environmental groups in Bangladesh, as in many other countries, are strongly opposing coal extraction.

If the government takes a political decision to extract coal, how will the business community support the initiative? We, particularly myself, want to support any rational initiative.

At a time when the country is facing an energy crisis, I believe taking steps to extract and utilize domestic coal is a rational approach.

I may be proven wrong, but I believe we need to move in this direction.

At the same time, we need more planned and coordinated initiatives for the exploration and extraction of domestic gas resources.

Power generation at the Rooppur Nuclear Power Plant should also begin as soon as possible.

However, I understand that the start of generation may be delayed further due to problems related to valves.

It may take more than another year for electricity from Rooppur to reach the grid at full capacity.

We should now consider whether additional nuclear power plants can be established to strengthen energy security.

Therefore, the 10year plan must ensure energy and electricity supplies through an integrated approach.

Alongside domestic resources, imports must also be incorporated into the plan.

We should remember that many countries depend entirely on imported energy, yet they do not face energy crises.

Therefore, we have to develop a plan that ensures there is no recurrence of such a crisis.

This requires not only adequate supply but also effi cient management.

During the interim government’s tenure, the agreement for installing the third FSRU was cancelled.

A long-term LNG supply agreement was also cancelled, while three negotiations for expanding LNG infrastructure were suspended.

In addition, 37 Letters of Intent for renewable power projects were cancelled.

There are allegations that these decisions by the interim government have put the BNP government under pressure.

What is your view? You are right.

Bangladesh’s energy crisis is not new.

But instead of taking initiatives to address the crisis, the interim government cancelled agreements and negotiations.

In other words, it moved away from possible solutions to the crisis.

Although it cancelled agreements for FSRUs and LNG procurement and also cancelled agreements for expanding renewable energy, it did not even initiate the necessary fi les for alternative arrangements.

As a result, the current government has had to face greater pressure over the energy crisis than it otherwise would have.

The situation has also been compounded by the war in the Middle East.

Therefore, I believe the current government should bear somewhat less responsibility for the existing energy and power crisis.

The country’s energy crisis cannot be resolved very quickly.

The Prime Minister is working with a target of creating 10 million new jobs by next year.

You have said that new investment is diffi cult under the current energy and power situation.

What should be the national strategy to address the crisis? We have urged the government to take immediate steps that can produce results in addressing the crisis.

For example, coalfi red power plants should be operated at full capacity by ensuring adequate coal supplies.

At the same time, furnace oil-based power plants should also be made fully operational.

This may increase the cost of power generation to some extent, but now is not the time to focus on that issue.

Instead, outstanding payments in the sector should be settled.

If immediate payment is not possible, the government should discuss the matter with entrepreneurs and fi nd alternative solutions.

Even those who are not directly affected by the energy crisis are becoming mentally crippled by the uncertainty.

Therefore, if the crisis cannot be resolved, creating another 10 million jobs will be extremely diffi cult.

I believe that alongside investment in energy exploration, resource development and infrastructure expansion, Bangladesh should adopt a policy of promoting investment in low-energy-intensive sectors.

Whether the target of creating 10 million jobs can ultimately be achieved is not the only issue.

What matters is whether the right initiatives are being taken to achieve that goal.

Around 1,857 new industrial investments are currently waiting for gas connections.

Even after depositing the required demand-note payments, they have not received gas connections.

What steps should the government take to protect these entrepreneurs? The priority should be to ensure that these industries receive energy supplies as quickly as possible.

If energy cannot be supplied, however, it is essential to protect their investments.

One option could be temporarily suspending their bank-loan instalment and interest payments, or introducing some other alternative mechanism to protect them until the energy supply situation improves

Bangladesh is passing through one of the most critical periods in its fuel and energy supply chain.

An acute shortage of 1,200-1,300 MMCFD of natural gas, against coincident peak demand of around 4,000 MMCFD, has put power generation, fertilizer production, industrial operations, CNG supplies and household gas use under severe pressure.

The crisis was dramatically exposed when a fi re at an FSRU sharply reduced RLNG supplies, while the simultaneous disruption of two FSRUs pushed the energy system close to the edge.

The shortage has widened since 2000 as the country’s proven gas resources have been depleted.

The government sought to manage the defi cit by setting up large imported-coal-based power plants at Payra, Patuakhali; Rampal, Bagerhat; Matarbari, Cox’s Bazar; and Anwara, Chattogram.

The government also allowed private-sector companies to set up two Floating Storage and Regasifi cation Units (FSRUs) at Maheshkhali.

The two FSRUs, operating in tandem, supplied 1,000-1,050 MMCFD of RLNG to the national gas grid operated by GTCL and Petrobangla.

On July 21, 2026, a reported accident-causing fi re at the FSRU operated by US company Excelerate led to a reduction in RLNG supply from 1,050 MMCFD to about 450 MMCFD.

The consequent massive impact on gas supplies caused an alarming power supply crunch, virtual suspension of gas supplies to CNG stations, domestic gas burners going dry, and severe disruption to industries and factories relying on gas supplies.

Despite all-out efforts to repair the damage, it took at least three weeks to bring the FSRU back into operation.

The situation suffered a further blow when an LNG-laden vessel failed to supply LNG to the Summit Energyoperated FSRU.

The simultaneous suspension of operations of two FSRUs took the situation beyond control.

The country experienced its worst-ever power load-shedding, exceeding 3,775 MW across the power supply network.

Districts outside Dhaka and rural areas were plunged into darkness, with 10-12 hours of major load-shedding in some areas.

Long queues were observed in front of CNG fi lling stations.

Industries, including export-oriented industries, were forced to reduce operations from three shifts to a single shift, while many industries pulled down their shutters.

People who could afford it started buying food from restaurants or using other fuels for cooking.

The BNP alliance-led government, inheriting a crisis-prone energy and power sector, almost ran out of options.

There were no other alternatives but to manage demand by limiting power use, including enforcing the closure of shopping malls and restricting extravagant lighting after 8 p.m.

Visiting the gas system SCADA and Power System NLDC, this writer observed the gas and electricity load curves during the crunch period.

Questions remained unanswered: What led to the fi re incident? Did Excelerate address the emergency promptly and effi ciently? People also asked why the LNG supplied in a standard vessel by Saudi Aramco was not accepted.

Through investigation, it appeared that, for reasons best known to the authorities, the Director (Operations and Mines) was made an Offi cer on Special Duty after objecting to an alleged syndicate demanding LNG supplies from the spot market.

We are aware that Qatar Gas, due to war and confl ict in the Persian Gulf and Arab countries, announced force majeure on long-term LNG supplies.

With the closure of the critical Strait of Hormuz, LNG supplies from another source, Oman, were also disrupted.

The government had no option but to import LNG from the spot market.

RPGCL usually imports LNG from a short-listed group of reputed suppliers.

There existed a process for purchasing some cargoes from the spot market by evaluating unsolicited offers in urgent situations, provided the supply met quality and other specifi ed requirements.

The trade contract concluded between Bangladesh and the United States also restricted Bangladesh from procuring LNG from countries and sources considered unfriendly to the United States.

It has been reported that the government failed to secure the required minimum LNG cargoes for the next couple of months.

In such a situation, an FSRU may run out of LNG supplies for certain periods.

In summary, it would not be wrong to say that Petrobangla is not managing LNG procurement and supply professionally.

We are aware that power and energy demand reaches its peak during the summer, from the end of May through October.

Power demand reaches 17,500-18,000 MW.

But because of gas supply constraints, Petrobangla cannot supply more than 950-1,000 MMCFD for power generation.

The Awami League-led government, while diversifying the fuel supply, set up half a dozen large imported-coalfi red power plants with a combined capacity of 6,927 MW and started importing power from India and Nepal.

Several liquid-fuel-based power plants with a total capacity of about 7,000 MW were also established.

Because of challenges arising from fl uctuations in the dollar exchange rate and volatility in global fuel prices, successive governments could not fully utilize the fuel capacity of coal-fi red and liquid-fuel-based power plants.

The present challenge is sustainable fuel supply.

The success of the 50- and 100-well drilling programs may not provide much comfort in the short term, even after they are completed.

The only possibility of adding signifi cant gas resources may be through deeper drilling at the Titas, Bakhrabad and Srikail gas fi elds.

These fi elds are adjacent to the gas grid and require little or no additional gas evacuation infrastructure.

Experts have suggested expediting construction of a gas transmission pipeline from the stranded gas fi elds at Bhola to the nearest gas transmission grid.

Experts have also suggested drilling wells at Chhatak and Tengratila and at fi ve prospective gas structures- Potiya, Kashalong, Sitapahar, Jhaldi and Sitakunda.

On the other hand, experts have suggested reviewing the contract with Summit Energy for construction of a third FSRU and fi nalizing the contract for a fourth FSRU.

Work on the landbased terminal at Matarbari must also be expedited.

Third Parallel Gas Transmission Pipeline From Maheshkhali to the Gas Transmission Hub Construction of a third FSRU in phases will be essential to evacuate additional imported LNG from Matarbari and Maheshkhali.

GTCL has worked out the requirements for constructing the Feni-Bakhrabad segment of the third parallel pipeline on a top-priority basis.

The provisions of the Gas Safety Act necessitate separation of the two transmission pipelines by a safe distance.

As such, expeditious action is essential for acquisition of a new right of way (ROW), followed by procurement of line pipes and other materials.

It will take at least three years to complete the pipeline.

We have heard of ridiculous suggestions for constructing the pipeline within the existing ROW.

It is a strange idea even to consider installing a 42-inch outside-diameter, heavywall pipeline-and, in some places, a concrete-coated pipeline-within the existing ROW alongside a high-pressure pipeline already in operation.

The idea of entrusting construction of the pipeline to the armed forces should also not be entertained.

GTCL must remain the sole specialized company responsible for managing gas pipeline construction.

Short-Term Contingency Action and Mid-Term Plans The government must ensure that coal-fi red and liquid-fuel-based power plants can operate at or near full capacity.

It may be possible to generate up to 13,000 MW from these power plants.

Another 2,000 MW may also be imported from India and Nepal.

If this can be done consistently through the end of October, pressure on gas resources can be reduced signifi cantly.

The gas saved in the process can be diverted to industries.

The government must also scrutinize the gas used for domestic cooking and CNG.

There are options for using alternative fuels, including LPG for cooking and Autogas for automobiles.

We would suggest limiting the price of LPG to keep it competitive with pipeline gas for domestic consumers.

Phasing out pipeline gas supplies to domestic consumers would assist in diverting about 13-15% of gas to industries.

This would also eliminate the massive gas losses from dilapidated gas distribution pipelines.

However, extensive safety alerts and stakeholder engagement must be undertaken to ensure the safe use of LPG.

The supply of gas to automobiles as CNG must also be phased out.

The primary transportation fuel may be Autogas.

But appropriate incentives must be provided for electric vehicles (EVs) and green EV charging stations.

The two units of the Rooppur Nuclear Power Plant must also be commissioned in phases by the end of 2027.

A visit to NLDC and PGCB has indicated that the power grid is now ready to safely evacuate the fi rst 1,200 MW of nuclear power from the fi rst unit in phases.

However, as spinning reserve, the gas saved as a consequence of full utilization of coal-fi red and liquidfuel-based generation may be used during the winter period (November to February).

Once evacuated and stabilized, at least 600 MW of nuclear power may be available by March 2027.

Long-Term Planning We have noticed less-than-required engagement with major potential international oil companies for investment in offshore exploration.

The hue and cry over gas and electricity shortages and poor management in the concerned ministries are acting as negative incentives.

There may even be a situation in which there is no response to a PSC bidding round.

The government must be ready to negotiate PSCs with one or more leading IOCs based on unsolicited offers.

Gas from offshore exploration may take until 2035 to become available.

We would also suggest launching a PSC bidding round for land blocks outside areas reserved within the BAPEX ring-fenced area.

The government may work toward having 10 exploration rigs, including BAPEX and IOC-operated rigs, working onshore from 2028.

At the same time, a vigorous drive must be launched for 2D and 3D seismic surveys across the entire land surface for resource identifi cation.

We would also suggest taking a political decision to exploit discovered coal resources.

If coal exploration and construction of 7,000-10,000 MW of domestic coal-based power plants are initiated simultaneously by 2031-32, Bangladesh will be in a more comfortable position in terms of power and energy.

Bangladesh must also engage proactively with India, Nepal and Bhutan to establish the BBIN power grid for regional power trading.

We have observed that power demand during winter declines from about 18,000 MW to 10,000 MW.

The development of a regional power grid would facilitate power trading through win-win power sharing among the countries.

Reforms and Restructuring We would strongly recommend essential reforms and restructuring of Petrobangla and its companies.

The status of Petrobangla should also be upgraded to the top category.

The post of chairman should be upgraded to the rank of full secretary.

Line professionals with the required hands-on experience should be engaged as chairman and in other senior positions.

The boards of directors of Petrobangla and its companies must also be reconstituted with professionals and researchers.

Recruitment of fresh, qualifi ed executives and appropriate training for capacity building must also be undertaken.

Modern energy industries need experts educated in artifi cial intelligence, blockchain and cybersecurity to embrace automation and modern technologies.

Recommendations 1.

Launch planned demand-side management measures to save gas used for power generation and divert the gas saved to industries.

2.

Phase out gas supplies for domestic cooking and CNG and replace them with safe and affordable supplies of LPG and Autogas.

3.

Consider the utilization of SNG (synthetic natural gas) for industries.

4.

Promote extensive use of batterybacked rooftop solar for industries to reduce reliance on grid power.

5.

Expedite action to evacuate stranded gas from Bhola to the national grid.

6.

Take stronger action to aggressively engage potential IOCs for offshore exploration.

Launch a PSC bidding round for additional onshore blocks and undertake more intensive 2D and 3D seismic surveys across the land surface.

7.

Launch initiatives for institutional reform and capacity building to develop a smarter energy sector.