Category: Energy and Power

Saudi Arabia has temporarily shut its strategic East-West oil pipeline after a drone attack, raising concerns over further disruption to global crude supplies amid the widening Middle East confl ict.

The 1,200-km pipeline, which links the kingdom’s oil fi elds to the Red Sea port of Yanbu, has become a critical alternative to the Strait of Hormuz.

It has recently carried around 4 million barrels per day, equivalent to roughly 4% of global oil supply.

Saudi authorities said the shutdown was a precautionary measure after the attack caused damage and injuries.

Riyadh and Baghdad said the drones originated in Iraq, while Iraq ordered an investigation and dismissed a military commander in response.

The disruption came as Houthi forces expanded their presence around the Bab el-Mandeb Strait, another major shipping chokepoint.

The attacks on the pipeline and the strategic Perim Island heightened concerns over the security of alternative oil-export routes.

Bangladesh’s latest fuel price hike is likely to fuel infl ation, reduce real household purchasing power and weaken consumption, particularly among price-sensitive households, according to BRAC EPL Stock Brokerage Ltd.

The government raised the prices of diesel, kerosene, petrol and octane by Tk20 per liter from September 21.

Diesel, widely used in freight transport, public transportation and irrigation, saw the largest percentage increase at 17.4%.

In a special brief, BRAC EPL said higher fuel costs would initially raise transport, irrigation and distribution expenses, with secondround effects likely to spread to food, services and wage expectations.

Higher logistics and input costs could also squeeze corporate margins, production and capacity utilization.

The brokerage said the adjustment could, however, reduce Bangladesh Petroleum Corporation’s losses and government fi nancing needs.

The government has allocated Tk119.56 crore to union parishads across Bangladesh to implement solar power projects aimed at supplying renewable electricity to the national grid.

The Local Government Division released the funds as a one-time special allocation under the Union Parishad Development Assistance sector of the Annual Development Program (ADP) for fi scal 2026-27.

A government order said the allocation must be used exclusively for the approved solar projects, with expenditures following the Union Parishad Development Assistance Utilization Guidelines, 2021 and the Public Procurement Rules, 2025.

The funds will be released through the respective union parishad accounts under prescribed procedures, with Upazila Nirbahi Offi cers (UNOs) responsible for drawing and disbursing the money.

Any unspent funds must be returned to the government treasury by June 30, 2027.

Climate pressures on agriculture could signifi cantly alter household food choices and ultimately impact nutrition and cardiometabolic health, experts warned at a workshop in the capital recently.

The International Maize and Wheat Improvement Center (CIMMYT) organized the workshop in Dhaka to examine the interconnected pathways between climate change, agricultural output, food availability, and chronic diseases such as diabetes and heart disease.

The workshop utilized Fuzzy Cognitive Mapping (FCM), a systems analysis approach designed to map complex interlinkages across sectors.

Organizers noted that this event marked the fi rst application of FCM in Bangladesh focused specifi cally on the nexus of climate, nutrition, and cardiometabolic health.

The workshop was conducted under the project titled ‘The Impact of Climate Change on Nutrition and Cardiometabolic Disease in Bangladesh: Catalyzing Policy Action,’ funded through the Wellcome Trust Climate Impacts Award.

Running from March 2026 to February 2029, the initiative aims to generate evidence to support healthier diets and climate-responsive public policies.

Bangladesh has spent nearly half of its FY202627 budget allocation for power and LNG subsidies in just two and a half months, as soaring international energy prices drive up import costs.

The government allocated about Tk480 billion for the two sectors, of which Tk238 billion, or 49.6%, had been disbursed by September 20.

The power sector received Tk138 billion, equivalent to around 37% of its Tk370 billion annual allocation.

The LNG subsidy allocation is under even greater pressure.

Of the Tk110 billion budgeted for LNG imports, around Tk100 billion had already been disbursed in July and August, leaving only Tk10 billion for the rest of the fi scal year.

Offi cials warned that subsidy requirements could rise sharply if LNG prices remain elevated.

Bangladesh has recently purchased spot LNG at nearly $30 per MMBtu, about three times the preMiddle East confl ict level.

The government had allocated Tk60 billion for LNG subsidies in FY2025-26, but actual spending rose to Tk166 billion by the end of that fi scal year.

The Bangladesh Power Development Board (BPDB) has signed an agreement with Suhua-PSDC JV to build a 10MWp solar power plant with a 16MWh Battery Energy Storage System (BESS) and associated distribution facilities at Bhasanchar in Noakhali.

Suhua-PSDC is a joint venture between China-based Suhua Construction Group Co Ltd and Bangladesh’s Power System Development Co Ltd.

BPDB Board Secretary (additional charge) Afroza Sultana and Suhua Construction Group Manager Jiang Ruihua signed the agreement in Dhaka.

The project has a contract value of Tk167.55 crore, including $9.05 million in foreign currency and Tk56.88 crore in local currency, with an implementation period of 18 months.

It is being implemented under the World Bankfi nanced HELP project.

As Bhasanchar is outside the national grid, the project will operate as an offgrid hybrid power system combining solar generation, battery storage and electricity distribution facilities.

The 16MWh BESS will be among the largest battery energy storage systems in Bangladesh.

US President Donald Trump has signed into law a sweeping sanctions package targeting Russia’s economy and energy revenues, including measures that could impose tariffs of up to 100% on major purchasers of Russian oil and natural gas.

The Lindsey O.Graham Sanctioning Russia and Iran Act of 2026 authorizes sanctions against Russian offi cials, fi nancial institutions and entities, while also targeting Russia’s so-called shadow fl eet used to circumvent existing energy sanctions.

The law gives the president authority to impose tariffs of up to 100% on the fi ve largest purchasers of Russian-origin crude oil and natural gas, as well as countries facilitating sanctions evasion.

An exception applies to certain countries importing less than 15% of their natural gas from Russia and taking signifi cant steps to reduce their dependence.

The legislation also extends the Iran Sanctions Act of 1996 through 2031, maintaining sanctions related to Iran’s energy sector and weapons activities.

Adani Power has begun work on a 3,200MW ultra- supercritical thermal power plant in Assam’s Dhubri district, involving an investment of around ?48,000 crore (about Tk60,000 crore).

Assam Chief Minister Himanta Biswa Sarma laid the foundation stone for the Chapar project on September 20.

The plant will comprise four 800MW units and is scheduled to be commissioned in phases from December 2030, with full commissioning targeted for December 2032.

The project is expected to create up to 20,000 jobs during construction and around 5,000 jobs once operational.

It is part of Adani Group’s planned ?63,000-crore investment in Assam’s power sector, including two pumped-storage projects with a combined capacity of 2,700MW.

Adani Power secured the project through competitive bidding in 2025 and subsequently received the Letter of Award from Assam Power Distribution Company Limited for long-term procurement of the plant’s entire 3,200MW capacity.

The government plans to drill 300 gas wells in two phases and set up three new LNG terminals to strengthen Bangladesh’s energy supply, Prime Minister’s Offi ce spokesperson Mahdi Amin said recently.

Speaking at a special press conference at PMO, Mahdi, also the Prime Minister’s Adviser, said work had already begun on a mediumterm program to drill 150 wells across the country to address the gas crisis.

Another 150 wells would be drilled in the next phase, he said.

The government also plans to add three LNG terminals to the two existing facilities, with efforts under way to make the third terminal operational before 2028, Mahdi said.

It is also expanding the Eastern Refi nery in Chattogram, for which around $1 billion in international fi nancing has been secured, he added.

Referring to Prime Minister Tarique Rahman’s recent meeting with business and industrial leaders, he said the government had assured them of measures to improve gas supply

Bangladesh is unlikely to face a fuel supply crisis until December despite procurement challenges and disruptions to international shipping routes, Bangladesh Petroleum Corporation (BPC) Chairman Dr Md Rafi qul Islam said recently.

‘There will be no problem with fuel supply until December,’ he told journalists at an exchangeof-views meeting at BPC headquarters in Chattogram.

He said BPC was taking necessary measures to maintain uninterrupted supplies while exploring alternative sources and routes for fuel imports.

Rafi qul said BPC was working to fully operationalize the Dhaka-Chattogram fuel pipeline and complete the Jet-1 pipeline project by December, although the contractor has targeted March.

A decision on appointing an operator for the longdelayed Single Point Mooring (SPM) project could also come soon.