Category: Energy and Power

The launch of Offshore Bidding Round 2026 marks one of Bangladesh’s most important energy initiatives in recent years.

as domestic gas production declines and dependence on costly imported fuels increases, the country has little choice but to intensify efforts to explore its own hydrocarbon resources.

the revised Offshore Model PSC 2026 is undoubtedly a signi?cant improvement. By addressing concerns related to gas pricing, pipeline tariffs, investment protection, and data costs, the government has demonstrated a willingness to learn from the failure of the previous bidding round.

these reforms should make Bangladesh more competitive in the global race for exploration capital. However, an attractive contract alone will not guarantee success.

international oil companies ultimately invest where they see both commercial potential and con?dence in the investment environment. Bangladesh still faces challenges in both areas.

the country’s offshore geological data remains limited and insuf?ciently packaged for investors. Reprocessing existing seismic data and presenting a compelling geological narrative should become an immediate priority.

at the same time, the government must actively market the opportunity through international roadshows, diplomatic engagement, and direct discussions with potential investors.

even if successful bids are received, commercial discoveries may take a decade or more to materialize. Patience, consistency, and policy stability will therefore be essential. Whether that potential becomes reality will depend not only on the PSC terms but also on the government’s ability to build investor con?dence, maintain transparency, and pursue smart energy diplomacy. The opportunity is signi?cant; now the challenge is execution.

Asian Development Bank President Masato Kanda has met Prime Minister Tarique Rahman in Dhaka to discuss Bangladesh’s development priorities during a visit that highlighted funding announcements totalling $5 billion.

the ADB said it intends to provide $5 billion over ?ve years for the Integrated Growth Network Development Initiative, presented by Kanda during the visit. Bangladesh is entering a critical new phase, he said, adding that the ADB will help the country protect hard-won stability, unlock new sources of growth and build a more diversi?ed and resilient economy that delivers better jobs and wider opportunity, according to a press release issued on 25 May. During the visit, the lender signed about $1.4 billion in loans as part of the 2026 annual commitment program.

Bangladesh has launched its most ambitious offshore energy initiative in years, offering 26 oil and gas blocks in the Bay of Bengal under a revamped and investorfriendly Offshore Bidding Round 2026. With domestic gas reserves declining and dependence on imported fuel rising, the government is betting that improved contract terms, stronger investor protections, and aggressive international outreach can ?nally unlock the country’s largely unexplored offshore potential. Yet attractive ?scal terms alone may not be enough.

the real test will be whether Bangladesh can convince international oil companies that its offshore prospects, investment climate, and political stability justify the billions of dollars and years of risk required for deepwater exploration.

through a public notice and press conference, the Energy and Mineral Resources Division has formally announced November 30, 2026, as the deadline for bid submissions.

at the launch event, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmood said that although the previous government frequently highlighted Bangladesh’s maritime boundary victories, it failed to take effective steps to explore and develop the Bay of Bengal’s hydrocarbon resources. While efforts were made toward the end of its tenure to attract offshore investment, no investors ultimately participated.

the minister said the BNP-led government is working to ensure a favorable investment climate. He recalled that Bangladesh’s 1993 bidding round under former Prime Minister Khaleda Zia attracted signi?cant international investment and led to major oil and gas discoveries.

according to him, ?elds developed under those PSC arrangements still account for around 60 percent of the country’s domestic gas production.

the Energy Division says a new Offshore Model Production Sharing Contract (PSC) 2026 has been approved after extensive revisions. Compared with the Offshore Model PSC 2023, the new version is designed to be more investorfriendly while protecting national interests.

of?cials hope the revised terms will encourage international oil companies (IOCs) to participate in offshore exploration. Petrobangla noted that during the previous bidding round, the submission deadline was extended until December 2024.

although seven IOCs purchased tender documents and two companies bought data packages, no bids were ultimately submitted. Subsequent consultations with international companies, industry experts, and consultants identi?ed several reasons behind the failure.

these included concerns over gas pricing, pipeline tariffs, the Workers’ Pro?t Participation Fund (WPPF), limited geological data, and the high cost of acquiring data packages. However, investors’ lack of con?dence in the political environment at the time was widely viewed as the most signi?cant factor.

in response, the government revised the PSC framework and secured approval for the new model. Petrobangla has already begun distributing bid notices to IOCs and has made the Offshore Model PSC 2026 publicly available on its website.

a separate publication highlighting Bangladesh’s hydrocarbon potential, gas market, and broader energy sector is also being prepared. Key Features of Offshore Model PSC 2026 Of?cials from Petrobangla and the Energy Division say the revised contract re?ects international best practicesand incorporates provisions commonly used in leading hydrocarbon-producing countries. Gas Pricing Natural gas prices will be linked to international Brent crude oil prices. ? Shallow-water blocks: 10.5 percent of Brent crude price ? Deepwater blocks: 11 percent of Brent crude price To protect both investors and the government from extreme market volatility, ?oor and ceiling price mechanisms have been introduced. Deepwater Pipeline Tariff A new provision allows Petrobangla to pay transportation tariffs for petroleum moved through privately constructed subsea pipelines.

the measure is intended to improve project economics for offshore developments requiring major infrastructure investments. Reduced WPPF Rate The Ministry of Labour and Employment has reduced the WPPF contribution rate for fully foreign-owned energy companies from 5 percent to 1.5 percent. Lower Data Costs To encourage participation, the cost of geological and geophysical data packages has been reduced by 50 percent.

exploration Period The total exploration period will be nine years: ? Initial exploration phase: six years ? Four years for geological, geophysical, and seismic surveys ? Two years for drilling ? Subsequent exploration period: three years Only seismic surveys are mandatory under the minimum work program, while additional seismic and drilling commitments will be determined through bidding. Bank Guarantees Required guarantees include: ? Geological and geophysical work: US$3 million ? Drilling phase: US$20 million ? Subsequent exploration phase: US$20 million Cost Recovery and Pro?t Sharing Investors will be allowed to recover up to 100 percent of exploration and development costs, subject to an annual ceiling of 75 percent of production revenue. Government pro?t-sharing limits are: ? 40-65 percent for shallow-water blocks. ? 35-60 percent for deepwater blocks. For shallow offshore blocks, a 10 percent carried interest for BAPEX will be mandatory.

tax Bene?ts Contractors will enjoy duty-free import facilities for equipment and materials used in exploration and development. Petrobangla will continue to bear contractors’ corporate income tax obligations.

oil Pricing Any oil discovered will be priced according to prevailing fair market prices in South and Southeast Asia. Gas Sales and Export Rights Contractors may sell their share of gas to third parties in the domestic market, subject to Petrobangla’s right of ?rst refusal.

if domestic buyers are unavailable, exports will be permitted.

investment Protection The PSC includes stabilization and anti-expropriation clauses to ensure investor protection. Fees and Bonuses ? Commercial discovery bonus: US$3 million ? Production bonuses: ? Gas: US$500,000 to US$6 million ? Oil: US$500,000 to US$4 million Research and Development Contributions Contractors will contribute: ? US$0.10 per barrel of pro?t oil ? US$0.004 per MCF of pro?t gas Service Fees Annual contract service fees: ? Exploration and development phase: US$200,000 ? Production phase: US$300,000 Training Grants Annual training contributions: ? Exploration and development phase: US$150,000 ? Production phase: US$200,000 Production Period ? Gas ?elds: 25 years ? Oil ?elds: 20 years These terms may be extended by an additional 10 years if commercialproduction continues.

of?cials believe the revised Offshore Model PSC 2026 will signi?cantly improve investor con?dence and attract international energy companies to explore the Bay of Bengal’s untapped oil and gas resources, helping strengthen Bangladesh’s long-term energy security. Model PSC and Investor Perspectives Industry experts generally view the new PSC as technically and commercially stronger than previous versions. Professor Dr.

anwar Hossain Bhuiyan of the Department of Geology at the University of Dhaka described the revised PSC as balanced and attractive for both investors and the state. However, he emphasized that Bangladesh still lacks a major offshore discovery that could signi?cantly boost investor con?dence.

according to him, Petrobangla possesses approximately 66,000 linekilometers of seismic data, but much of it has not been adequately reprocessed or interpreted. He believes improving and packaging this data should be a priority. Dr. Bhuiyan also noted that Bangladesh’s offshore geology may not support giant discoveries of 30-50 trillion cubic feet (TCF), which many major IOCs seek when evaluating investment opportunities. Beyond contractual terms, investors will also assess political stability, the investment climate, and geopolitical considerations.

energy expert and former BUET Dean Professor Ijaz Hossain welcomed the new PSC but questioned whether it would be suf?cient to attract the world’s largest energy companies.

in his view, Bangladesh should focus aggressively on attracting capable midsized international operators while highlighting the country’s investment potential and political stability. Former BAPEX Managing Director Murtaza Ahmed Faruque said the PSC is substantially improved but argued that additional incentives should have been offered for joint ventures involving BAPEX and local companies.

according to him, greater domestic participation would help Bangladesh develop technical expertise and operational capacity in offshore exploration over the long term. Challenges and the Road Ahead Bangladesh lacks the ?nancial resources, technology, and specialized workforce required to independently conduct offshore exploration. Consequently, foreign investment remains indispensable.

to attract investors, the Energy Division is considering a series of international roadshows. While details have not yet been ?nalized, experts recommend promotional events in major energy and ?nancial centers, including Singapore, Europe, and North America. Many also advocate organizing followup events in Bangladesh so prospective investors can directly assess the country’s investment climate, regulatory environment, and political conditions.

industry stakeholders note that the number of companies actively investing in offshore exploration worldwide is relatively small.

therefore, Bangladesh must pursue a highly targeted investment promotion strategy.

experts suggest engaging foreign diplomats stationed in Dhaka and directing Bangladeshi missions abroad to actively promote offshore opportunities among major energy companies.

the upcoming D-8 Energy Ministers’ Meeting in Baku may provide another platform for promoting investment opportunities in Bangladesh’s offshore sector. Conclusion Many experts estimate that Bangladesh’s portion of the Bay of Bengal could contain between 20 and 30 TCF of natural gas resources. However, only extensive seismic surveys and exploratory drilling can determine whether those resources actually exist and can be produced commercially. Despite becoming one of the ?rst countries in the region to begin offshore exploration in the 1970s, Bangladesh has discovered only one commercial offshore gas ?eld-Sangu-which has already been depleted. Several major international companies, including TotalEnergies, ConocoPhillips, Santos, POSCO Daewoo, and ONGC, have previously explored offshore blocks in Bangladesh but eventually withdrew after failing to achieve commercially attractive results.

the government is now offering 26 offshore blocks-11 shallow-water and 15 deepwater blocks-in what may be its most important offshore investment drive in decades.

the revised PSC has addressed many investor concerns, but contractual improvements alone may not be enough. Success will depend on how effectively Bangladesh can market its offshore potential, improve data quality, build investor con?dence, and navigate an increasingly complex geopolitical landscape. For a country facing mounting energy import costs and growing demand, unlocking the Bay of Bengal’s resources could transform its energy future. Whether Offshore Bidding Round 2026 succeeds where previous efforts failed may ultimately determine Bangladesh’s long-term energy security trajectory

The government has begun work on achieving ?ve key milestones to secure Bangladesh’s energy future, with a strong push toward renewable energy and reducing dependence on imports, said Prime Minister’s Adviser on Finance and Planning Rashed Al Mahmud Titumir recently. Speaking at a dialogue titled ‘Renewable Energy in the Upcoming Budget: Expectations and Reality’ organized by think tank Centre for Policy Dialogue (CPD) at a city hotel, Titumir said the country’s energy sector had long been surrendered to oligarchs under import-dependent policies that left Bangladesh economically vulnerable.

the adviser outlined ?ve priority milestones guiding the government’s energy roadmap: First, the upcoming budget will allocate greater resources toward renewable energy which he described as the sector’s top priority.

Anker Solix has launched its new Solarbank 4 E5000 Pro, a modular 5 kWh residential battery storage system designed for rooftop solar applications.

unveiled in Berlin, the system features four integrated maximum power point trackers (MPPTs), allowing up to 5 kW of solar input and connection of up to 12 solar panels.

the battery capacity can be expanded modularly up to 30 kWh by stacking additional units.

the Solarbank 4 Pro includes a bidirectional inverter capable of supplying households with up to 2.5 kW of power while operating under an 800 W grid feed-in limit.

the system also supports backup power during grid outages, with automatic switchover within 10 milliseconds to maintain an uninterrupted electricity supply.

according to the company, the battery uses lithium iron phosphate (LFP) cells rated for up to 10,000 charging cycles and a 15year lifespan.

India raised its export duty on petrol and cut those on diesel and aviation fuel recently, its government said in a statement, within a day of raising retail fuel prices for the ?rst time since the Iran war started.

the duty on petrol exports has been raised to 3 rupees ($0.0313) per liter, while that on diesel has been cut to 16.5 rupees per liter, the statement said.

export duties on aviation fuel have been cut to 16 rupees per liter.

the rates are being revised fortnightly and are based on the average international prices of crude oil, petrol, diesel, and ATF during the period since the last review.

there is no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption.

New data from the Organisation for Economic Co-operation and Development (OECD) indicates that climate ?nance provided and mobilised by developed countries increased to USD 132.8 billion in 2023 and USD 136.7 billion in 2024. While this suggests continued growth, campaigners argue that the headline ?gures hide deeper structural problems.

according to critics, the OECD’s accounting approach has long been seen as overstating actual climate ?nance delivered.

as a result, the reported increase may be signi?cantly smaller under stricter and more transparent accounting rules. At the same time, many developed countries are reducing overall development aid budgets, raising concerns that climate ?nance is increasingly being drawn from shrinking aid pools rather than representing genuinely new and additional funding.

As Bangladesh’s LPG market continues to expand rapidly across households, industries, transport, and commercial establishments, concerns over safety are becoming increasingly urgent. Industry experts, regulators, operators, and safety of?cials warn that while LPG remains a safe and ef?cient fuel when handled properly, weak compliance, poor awareness, inadequate training, and regulatory shortcomings are exposing users to avoidable risks.

at a recent roundtable, stakeholders emphasized that up to 80 percent of LPG-related accidents could be prevented through greater awareness, stricter enforcement of safety regulations, improved training, and stronger institutional oversight. They called for a comprehensive policy framework backed by effective implementation to ensure the sustainable and safe growth of Bangladesh’s LPG sector.

the roundtable, titled ‘Bangladesh’s LPG Sector Facing Growing Safety and Regulatory Challenges,’ was jointly organized by the Bangladesh Energy Regulatory Commission (BERC), the LPG Operators Association of Bangladesh (LOAB), and Energy and Power at the BERC auditorium. BERC Chairman Jalal Ahmed attended as the chief guest, while LOAB President Mohammed Amirul Haque presided over the event.

a keynote paper was presented by Dr. Md Easir Arafat Khan, Professor of Chemical Engineering at BUET.

the session was moderated by Energy and Power Editor Mollah Amzad Hossain.

among others, BERC Member (Petroleum) Dr. Syeda Sultana Razia, Joint Secretary of the Energy and Mineral Resources Division AKM Fazlul Haque, REHAB Vice President A.K.M. Barkotullah, LOAB Vice President Humayun Rashid, LPG Autogas Stations and Conversion Workshop Association President Engr. Md. Serajul Mawla, Department of Explosives Assistant Inspector Muhammad Mehedi Islam Khan, Fire Service and Civil Defence Assistant Director Md.

iqbal Bahar Bulbul, and an energy professional Engr. Jakaria Jalal also spoke. ‘If we cannot change this culture, it will be dif?cult to improve the situation,’ he said. He noted that LPG use is growing rapidly in households, vehicles, and industries, but safety practices have not kept pace. Safety, he said, must remain the priority because indiscriminate use of LPG can create signi?cant risks.

ahmed emphasized the need for structured training programs, beginning with training trainers who can subsequently educate workers involved in LPG handling, transportation, and distribution. He also said the government is consulting stakeholders to formulate a user-friendly and effective LPG policy that minimizes the need for frequent amendments. Mohammed Amirul Haque LOAB President Mohammed Amirul Haque said Bangladesh does not face an LPG supply shortage; rather, the key challenge is developing a safer operating environment. ‘With cooperation from all stakeholders, we can ensure safe transportation and use of LPG,’ he said, stressing the need for strict compliance throughout the supply chain. He added that industry operators are working together to improve safety standards and called for a rational pricing framework to support sustainable sector growth.

easir Arafat Khan In his keynote presentation, Dr. Md.

easir Arafat Khan argued that LPG is inherently safe when hazards are managed properly through established safety protocols.

according to him, risks associated with storage, transportation, and handling can be effectively controlled through compliance, training, and disciplined operations. However, weak enforcement, poor safety culture, and inadequate oversight continue to create vulnerabilities. Dr.

arafat highlighted several major concerns, including widespread non-compliance among autogas stations, many of which reportedly operate without proper licenses and documentation. He also pointed to the absence of certi?ed gas detection systems, emergency shutdown systems, and adequate leak detection mechanisms at many facilities.

the lack of specialized training and licensing for technicians and transport operators further increases safety risks, he said.

illegal cylinder cross-?lling, unauthorized cylinder cutting and scrapping, and the operation of unlicensed LPG road tankers remain major concerns. Public awareness is also insuf?cient. Many consumers are unfamiliar with proper leak response procedures and safe equipment usage, increasing the likelihood of accidents.

to address these challenges, Dr. Arafat recommended stricter licensing requirements, stronger regulatory enforcement, mandatory safety audits, third-party inspections of high-risk facilities, and nationwide awareness campaigns. He also called for mandatory gas detection, ?re protection, alarm systems, preventive maintenance programs, and standardized equipment speci?cations.

a comprehensive national LPG policy aligned with international standards is also needed, he said. Syeda Sultana Razia BERC Member Dr. Syeda Sultana Razia agreed that awareness alone could reduce LPGrelated accidents signi?cantly. ‘Safety cannot be compromised,’ she said, noting that many accidents gounreported and that public education and training campaigns could prevent a large number of incidents. She acknowledged manpower shortages at the Department of Explosives and said authorities are considering involving third-party organizations to strengthen inspection and monitoring activities. Razia also stressed the importance of maintaining proper propane-butane mixtures in LPG cylinders, warning that deviations from prescribed standards could create serious safety hazards. While regulations and guidelines already exist, she noted that their effectiveness depends on proper implementation and compliance by all stakeholders. She also identi?ed high-rise buildings as particularly vulnerable and called for additional precautions in such facilities.

aKM Fazlul Haque Joint Secretary AKM Fazlul Haque said the rapid growth of the LPG sector has naturally increased safety concerns. ‘Safety is everyone’s responsibility,’ he said, emphasizing that poor-quality equipment and non-compliance signi?cantly increase risks. He acknowledged existing regulatory gaps and assured participants that the government is working to update regulations. Regular monitoring, stronger enforcement, and improvements in sector infrastructure will be necessary to address safety challenges, he added.

a K M Barkotullah REHAB Vice President A.K.M. Barkotullah said developers now incorporate ?re exits and ?re safety plans in high-rise buildings, but speci?c guidelines for LPG use in such structures remain inadequate. He called for dedicated safety standards for LPG installations in high-rise developments and stressed the need to improve maintenance and management systems.

engr. Md Serajul Mawla Meanwhile, Engr. Md. Serajul Mawla argued that existing LPG policies contain practical limitations that make compliance dif?cult. He said operators frequently struggle with substandard equipment and insuf?cient user training. While supporting stronger safety regulations, he urged policymakers to revise existing rules through greater consultation with industry stakeholders. ‘Rules should re?ect the realities on the ground,’ he said.

taking part in the discussion, LOAB president Amirul Haque said they want to ensure safety and security in the LPG sector with the cooperation of all concerned, and want to build a common platform to address all the problems. ‘The problem is there, but with getting all together we can prevent it, and will go ahead for the betterment of all.’ Humayun Rashid LOAB Vice President Humayun Rashid called for yearround training programs under BERC’s supervision to strengthen stakeholder awareness and improve operational safety. Mizanur Rahman BERC Member Mizanur Rahman stressed the importance of maintaining proper gas composition and pressure levels, saying that adherence to technical standards could signi?cantly reduce accident risks. Muhammmad Mehedi Islam Khan Department of Explosives Assistant Inspector Muhammad Mehedi Islam Khan highlighted severe manpower shortages within his department, which limit inspection and enforcement activities. Despite these constraints, he said efforts are underway to digitize services, speed up regulatory approvals, and seek technical support from BUET experts.

iqbal Bahar Bulbul Fire Service and Civil Defence Assistant Director Md.

iqbal Bahar Bulbul noted that most LPG accidents occur in households due to inadequate awareness. Many users lack even basic knowledge of safe handling practices, he said, stressing the importance of preventive measures such as ?re extinguishers, re blankets, and proper ignition procedures. ‘It is much easier to extinguish a small ?re before it becomes a major incident,’ he said. Bulbul pointed to the garment sector as an example of how compliance and safety awareness can signi?cantly reduce accidents. Mohiuddin Khaled Mohiuddin Khaled of G-Gas LPG said multiplication of cylinders will multiply the risk as well.

and he suggested a single cylinder to reduce the risk of accidents.

and also suggested policy regulation in this regard. Mehedi Hasan of Beximco LPG said the main focus should be on awareness of the people. Jakaria Jalal of Bashundhara Group said that while 2.5 lakh people are involved in India to lookafter the gas explosion safety issues, a few people are involved in Bangladesh. Abu Sayeed Raza Abu Sayeed Raza of Mehgna Fresh LPG suggested running the LPG road truck by the licensed persons, adding that an uncontrolled situation will be created if these are done by non-professionals. He also requested the authority to stop cross?lling of cylinders at the Autogas station, saying that otherwise the situation will go beyond control. Engr Liaqat Ali of Omera Gas also said cylinders should not be ?lled at Autogas stations.

engr Maidul said that cylinders should not be ?lled at an auto gas station, apprehending a high risk. Engineer Saidul Islam Engineer Saidul Islam, Partner, Siamgas Trading, said that compliances to be practiced by force. He also suggested some incentives, like tax vat bene?ts in this regard. 90 percent of installations have no reticulation permission, he said, suggesting controlling the reticulation system by force and introducing a safety audit system. Osman Celik Osman Celik, Chief Financial Of?cer of United Aygaz LPG, said the safety rules should be followed and maintained properly. He said concerned people should also be cautious while they are taking LPG from one place to another by transport. He said proper training and giving a license are also necessary for the operators. Conclusion The discussion concluded with a broad consensus that Bangladesh needs stronger enforcement, greater public awareness, improved training, and more practical regulations to ensure safe LPG use.

industry participants called for amendments to existing LPG policies, streamlined licensing procedures, and the establishment of a one-stop service center to improve regulatory ef?ciency. Most importantly, stakeholders agreed that safety must become a shared responsibility among regulators, operators, transporters, technicians, and consumers if Bangladesh is to sustain the rapid growth of its LPG sector while protecting lives and property

With ?rst LNG production achieved, Golden Pass LNG is on track to commence exports to global markets in second-quarter 2026. Golden Pass LNG, a joint venture between QatarEnergy and ExxonMobil, reached ?rst production of LNG from Train 1 at the export project in Sabine Pass, Tex. With ?rst LNG completed, the joint venture advances work to deliver its ?rst cargo, achieve sustained liquefaction operations, and meet its commercial and strategic objectives, ExxonMobil said in a release Mar. 30.

train 1 is one of three LNG trains comprising the 18-million tonnes/year plant.

Mirana Mahrukh, Additional Secretary of the Economic Relations Division (ERD), has been appointed as the new Secretary of the Power Division.

the appointment was announced in a noti?cation issued recently by the Senior Appointments Wing1 of the Ministry of Public Administration. The order, signed by Senior Assistant Secretary Jeti Pru on behalf of the President, stated that the appointment would take immediate effect in the public interest. Mirana Mahrukh is a member of the 18th batch of the Bangladesh Civil Service (BCS). She obtained both her bachelor’s and master’s degrees in Public Administration from University of Dhaka and later earned an MBA from Victoria University in Melbourne. During her career, she served in various positions in ?eld administration and government ministries.