Category: Energy and Power

Bangladesh could save between $600 million and $900 million in foreign exchange annually by transitioning its one million diesel-run irrigation pumps to solar power, according to Sha?qul Alam, chief energy analyst at the Institute for Energy Economics and Financial Analysis (IEEFA). Speaking to a local daily, he warned that while solar adoption has crossed the 500MW mark, the nation is failing to harvest ‘low-hanging fruit’ due to structural barriers. He noted that the massive savings from solar irrigation – calculated on pre-Middle East war diesel prices – remain locked behind a lack of farmer equity and the absence of a seasonal ‘irrigation-to-grid’ business model. ‘The real barriers are not technical; they are ?nancial and structural,’ Sha?qul said, emphasizing that for eight months of the year, these systems sit idle.

Environment, Forest and Climate Change Minister Abdul Awal Mintoo recently expressed optimism that Bangladesh will see signi?cant improvements in waste management within the next year, helping reduce pollution in rivers, canals and wetlands. Speaking in Parliament, he said the government is prioritizing measures to curb environmental degradation, noting that pollution stems from multiple sources beyond industrial activities.

the minister said a proposal is under consideration to establish a waste recycling plant at Amin Bazar, alongside efforts to strengthen waste management systems in urban areas nationwide. He added that industries are being required to install Ef?uent Treatment Plants (ETPs), while the private sector is being encouraged to convert waste into energy and bio-fertilizer.

B a ngladesh is currently facing a severe fuel supply disruption amid the ongoing global energy shock triggered by the 2026 Iran con?ict involving the United States and Israel.

the escalation of hostilities has signi?cantly disrupted crude oil and re?ned product ?ows through critical maritime routes, leading to sharp increases in international fuel prices and tightening global supply chains. As a highly import-dependent country, meeting energy needs from external sources, Bangladesh has been directly affected by these developments, resulting in fuel shortages, long queues at ?lling stations, periodic rationing, and supply instability across the country.

the crisis has exposed structural vulnerabilities in the national energy system, particularly its heavy reliance on imported petroleum and limited ?exibility in storage and re?ning. Rising import costs and logistical constraints have further strained foreign exchange reserves and intensi?ed pressure on domestic fuel distribution systems.

as a result, the energy sector is experiencing heightened volatility, underscoring the urgent need for accelerated infrastructure development, supply diversi?cation, and enhanced strategic resilience. Bangladesh’s energy sector is undergoing a critical transformation as the country moves from a fragmented, import-dependent fuel supply system toward an integrated, infrastructuredriven energy security framework. Strategic investments in key infrastructure projects like the Single Point Mooring (SPM), Eastern Re?nery Limited (ERL)-2 expansion, and IndiaBangladesh Friendship Pipeline offer a strategic pathway to mitigate shortages and build long-term resilience.

these initiatives are not standalone measures; together, they constitute an integrated framework to modernize fuel handling, enhance domestic re?ning capacity, and ensure diversi?ed and resilient supply chains. Collectively, they aim to reduce operational inef?ciencies, lower import costs, and strengthen national capacity to withstand global energy market volatility. However, the success of this transformation depends not only on infrastructure completion but also on timely operationalization, sound governance, and effective coordination among key stakeholders. Saudi Arabia and the UAE, with BPC importing crude oil under annual agreements and procuring ?nished petroleum products through G-to-G contracts and international tenders. In FY 2024-25, BPC imported 1.51 million tons of crude oil for processing at ERL, complemented by 0.6 million tons of domestic gas condensate, producing 1.5 million tons of petroleum products, close to ERL’s 1.57-million-tonne re?ning capacity.

additionally, 6.2 million tonnes of petroleum products were imported to meet national demand, highlighting the sector’s continued reliance on imports to ensure energy security. Between 2013-14 and 2024-25, Bangladesh’s petroleum imports showed steady ?uctuations in crude oil and re?ned products. Crude oil volumes ranged from 1.09 million tons in 2015-16 to a peak of 1.55 million tons in 2022-23, while re?ned product imports varied between 3.67 million tons in 2015-16 and 5.45 million tons in 2017-18.

overall totals moved from 5.35 million tons in 2013-14 to 6.25 million tons in 2024-25, with the highest intake recorded at 6.90 million tons in 2022- 23.

this trend re?ects both growing demand and periodic adjustments in sourcing strategies, balancing crude imports with re?ned product in?ows to meet national energy needs. Imported crude oil and re?ned petroleum products data for FY 2013-14 to FY 2024-25 are furnished below: The Single Point Mooring with Double Pipeline project was developed as a structural solution to the draft limitations of Chattogram Port, which historically prevented large crude carriers from docking.

to overcome this constraint, the Government and BPC initiated the establishment of a modern offshore unloading system, constructed by China Petroleum Pipeline Engineering Co. Ltd. (CPPEC).

this system marks a fundamental shift in Bangladesh’s fuel logistics by enabling direct offshore-to-onshore transfer of petroleum, eliminating the need for costly and inef?cient lighterage operations.

as a result, it serves as a critical enabler for the expansion of Eastern Re?nery Limited and strengthens the country’s longterm energy resilience.

technically, the SPM is designed to handle up to 9 million tons per annum (MTPA) through a 220 km double pipeline network, including a 36-inch crude oil line and an 18-inch diesel line.

the offshore segment extends 146 km, featuring an 11 km Horizontal Directional Drilling section, while the onshore network spans 74 km.

at Maheshkhali, the system is supported by modern storage facilities with dedicated crude and diesel tanks.

this infrastructure signi?cantly improves operational ef?ciency, reducing unloading time from 11-15 days to just 48 hours for large tankers.

the dual pipeline con?guration allows simultaneous transfer of crude oil and re?ned products, enhancing throughput and supply reliability. However, a pipeline disruption during a trial run in early 2024 highlighted the importance of rigorous commissioning and professional operational oversight.

economic Signi?cance and Strategic Role The economic rationale for the SPM is compelling. By replacing the traditional lighterage system, the project is expected to reduce annual unloading and transportation costs by approximately Tk 800 crore, with long-term savings potentially reaching Tk 80 billion through improved ef?ciency and scale. More importantly, the SPM functions as a vital ‘forward linkage’ for the ERL2 expansion.

the planned increase in national re?ning capacity to 4.5 million tons per year depends heavily on the SPM’s ability to ensure uninterrupted and high-volume crude supply.

operational Challenges and Bottlenecks Despite its strategic importance, the SPM facility has remained largely non-operational for nearly two years, creating ?nancial and operational risks. The primary constraint has been the failure to appoint a quali?ed Operation and Maintenance contractor.

the initial tender process collapsed when the sole bidder, PT Pertamina, quoted US$ 117 million for a ?ve-year contract, signi?cantly higher than the allocated budget of US$ 88 million.

this led to re-tendering delays and prolonged inactivity.

additionally, the issuance of the TakingOver Certi?cate to CPPEC has triggered the countdown of the warranty period. With the guarantee expiring in February 2026, the government now faces increased exposure to technical risks and maintenance liabilities. Meanwhile, the US$ 554 million project loan continues to accrue servicing costs without generating operational returns, placing pressure on public ?nances. Further delays have been linked to incomplete trial performance, unresolved technical issues, and reported resistance from vested interest groups bene?ting from the continuation of lighterage operations.

to safeguard this strategic investment, immediate action is required.

the government should prioritize the rapid appointment of a competent OandM operator while considering an interim arrangement with CPPEC to maintain system integrity.

accelerating coordination with the ERL-2 expansion is equally essential to ensure optimal utilization of the facility.

timely operationalization of the SPM is critical not only to prevent ?nancial losses but also to unlock its full potential as a cornerstone of Bangladesh’s modern energy supply chain and long-term energy security.

expansion of ERL-2 The expansion of Eastern Re?nery Limited (ERL-2) represents a critical step in strengthening Bangladesh’s energy security amid global fuel market volatility.

the ERL-2 project aims to increase total re?ning capacity from 1.5 million to 4.5 million tons per year by establishing a new 3-million-tonne unit. Beyond capacity enhancement, the project introduces a major technological upgrade, enabling production of Euro-5 standard fuels.

euro-5 fuels represent a major step toward cleaner energy use, reducing sulfur and particulate emissions while improving air quality and engine ef?ciency.

it is designed to process diverse crude oil grades from global sources, reducing dependence on a single supply region and enhancing supply ?exibility.

economically, ERL-2 is a transformative initiative. With a revised cost of approximately Tk 31,000 crore (US$2.5 billion), ?nanced through a 60:40 government and BPC/ERL contribution, the project prioritizes national ownership. By shifting from imported re?ned fuels to domestic crude processing, it is expected to save US$ 9-11 per barrel and signi?cantly reduce foreign exchange out?ow.

the re?nery will meet up to 45-50% of national petroleum demand and optimize the use of the SPM facility, which can handle 4.5 million tons of crude annually.

once operational, ERL-2 will diversify product output, including diesel, gasoline, jet fuel, furnace oil, LPG, and lube base oil, while upgrading existing production to Euro-5 standards.

this will not only improve supply reliability but also enhance the country’s competitiveness in the energy sector. Recently, key preparatory milestones have been achieved, including approval of the DPP, completion of Front-End Engineering Design (FEED) by Technip (France), and appointment of Engineers India Limited as Project Management Consultant.

the project is targeted for completion by 2030.

eRL-2 is not merely an expansion project; it is a cornerstone of Bangladesh’s long-term energy strategy, enabling greater self-reliance, cost ef?ciency, and environmental sustainability.

india-Bangladesh Friendship Pipeline The India-Bangladesh Friendship Pipeline marks a signi?cant milestone in regional energy cooperation and crossborder infrastructure development. This project was designed to ensure a reliable and cost-effective supply of fuel oil to Bangladesh, reducing dependence on traditional modes of transportation such as rail and road, which are often subject to delays, higher costs, and logistical challenges. The 131.5 km India-Bangladesh Friendship Pipeline, commissioned in March 2023, establishes a direct energy corridor from Siliguri in West Bengal, India, to the Parbatipur Depot in Dinajpur, Bangladesh, with only about 5 km of the pipeline located within Indian territories. Supplied by the Numaligarh Re?nery in Assam, the system provides a seamless, secure, and ef?cient channel for cross-border fuel transfer.

under the bilateral framework, Bangladesh is entitled to import up to 1 million metric tons of high-speed diesel annually through a phased approach. Initial supply volumes are set at 200,000 tons per year for the ?rst three years, followed by 300,000 tons annually in the subsequent phase, and eventually scaling up to 500,000 tons per year.

this gradual increase is designed to align infrastructure readiness with demand growth and operational capacity. Despite its strategic potential, the pipeline’s full utilization is currently constrained by limited downstream storage capacity. Existing facilities at Parbatipur can accommodate approximately 16,000 tons, which is insuf?cient to support higher import volumes.

earlier plans to construct six additional storage tanks, each with a capacity of 6,761 tons (totaling over 40,000 tons), remain pending and require urgent implementation. From a strategic perspective, the pipeline plays a critical role in enhancing energy security in northern Bangladesh by ensuring an uninterrupted fuel supply to agriculture, transport, and industry. It also reduces logistical pressure on Chattogram port and complements national infrastructure such as the SPM system and the ERL-2 expansion.

to fully realize the bene?ts of this infrastructure, a coordinated policy and investment approach is essential. The Bangladesh Petroleum Corporation should prioritize the expansion of storage facilities at Parbatipur to enable higher throughput and operational ?exibility. Simultaneously, proactive engagement with Indian counterparts is necessary to optimize import volumes in line with national demand growth. Strengthening downstream infrastructure, ensuring policy continuity, and enhancing regional cooperation will be key to transforming the pipeline into a cornerstone of Bangladesh’s integrated energy supply system. Conclusion The combined implementation of the SPM facility, ERL-2 expansion, and the India-Bangladesh Friendship Pipeline represents a comprehensive roadmap toward achieving long-term energy security for Bangladesh. While each project individually delivers signi?cant technical and economic bene?ts, their true strategic value lies in their integration, linking offshore crude handling, domestic re?ning, and regional fuel supply into a cohesive and ef?cient system. However, persistent delays in commissioning critical infrastructure, particularly the SPM, highlight systemic governance and operational challenges that must be urgently addressed.

idle assets, rising debt obligations, and exposure to vested interests risk undermining the very objectives these projects are designed to achieve. Without decisive action, the anticipated economic gains and ef?ciency improvements may remain unrealized.

to fully harness the potential of these investments, Bangladesh must prioritize transparent governance, expedite operational readiness, and ensure alignment between infrastructure development and policy execution.

if effectively synchronized, these initiatives can signi?cantly reduce import dependence, conserve foreign exchange, and position Bangladesh as a more resilient and strategically integrated energy economy

Bangladesh has expressed strong interest in diversifying its energy sources through cooperation with Canada’s Saskatchewan state, focusing on conventional energy, clean technologies and emerging areas such as small modular reactors (SMRs). High Commissioner of Bangladesh to Canada Md Jashim Uddin made the remarks during a series of high-level meetings in the province as part of his of?cial visit, according to a message received recently. During his meeting with Saskatchewan Premier Scott Moe, the envoy proposed establishing a BangladeshSaskatchewan framework of cooperation to structure engagement in key areas, including energy, agriculture, agri-food value chains and research collaboration.

the Premier welcomed the proposal and expressed interest in advancing both immediate and long-term cooperation under the framework.

Japan’s net greenhouse gas emissions fell by 1.9% in the ?scal year ending March 2025, dropping to a record low of 994 million tonnes, according to government data.

this marks the ?rst time emissions have fallen below one billion tonnes since 2013, re?ecting a steady longterm decline supported by greater use of renewable and nuclear energy and reduced industrial energy consumption.

in contrast, China-the world’s largest emitter-continues to see overall emissions growth, driven by coal-dependent industrial expansion, despite rapid renewable energy deployment. Similarly, India’s emissions are rising steadily as energy demand grows to support economic development, with coal still dominating its power mix.

in Japan, fossil fuels still accounted for 67.5% of electricity generation, though this share has slightly declined.

the country aims to reduce this to 30-40% over the next 15 years

Lique?ed petroleum gas (LPG) prices have been increased again within just 17 days, with the price of a 12 kg cylinder rising by Tk 212 to Tk 1,940.

earlier on April 2, the Bangladesh Energy Regulatory Commission (BERC) had raised the price by Tk 387, setting it at Tk 1,728. With the latest adjustment, the total increase for a 12 kg cylinder in April stands at Tk 599.

in its order issued on April 19, BERC cited higher import costs, including increased freight charges, trader premiums, and rising diesel prices, as the main reasons behind the hike. The regulator noted that freight and premium costs have surged signi?cantly- partly due to tensions involving Iran-leading to higher shipping expenses. While earlier pricing was calculated based on $120 per tonne for freight and premiums, the new rate considers $250 per tonne to ensure uninterrupted LPG supply.

Bangladesh’s Small and Medium Enterprise (SME) sector is witnessing a sharp decline in activity, with production down by as much as 30% in recent weeks amid the global energy crisis, rising raw material costs, and frequent load-shedding. Mirza Nurul Ghani Shovon, President of the National Association of Small and Cottage Industries of Bangladesh (NASCIB), told a local newspaper that the situation is becoming untenable for many smallscale manufacturers. ‘The energy crisis has pushed many institutions to the brink of closure.

in many cases, production has already dwindled by 25% to 30%,’ Shovon said.

What was a dream over six decades ago is now turning into a reality.

the process started with the loading of fuel in unit 1 of the 2400 MW Roopur Nuclear Power Plant from April 28, a gigantic step to take energy-starved Bangladesh to the world’s elite nuclear power nations. There are now 33 countries which produce nuclear power through 400 reactors accounting for nearly 11% of the global electricity. Bangladesh joins the exclusive club as the 34th nation in the world and the third in South Asia after India and Pakistan. In inaugurating the fuel loading Science and Technology Minister Fakir Mahbub Anam hailed it as a ‘landmark achievement’ and a ‘glorious chapter’ in Bangladesh’s history, heralding the country’s entry into the nuclear era. He rightly emphasized that safety is the ‘?rst priority’ and that all fuel loading activities are being carried out strictly according to international standards. He told the event that after the completion of fuel loading and technical processes, the ?rst unit (1,200 MW) is expected to start commercial generation of 300 MW by late July or early August 2026. He mentioned that the plant will go into full-scale production in stages, aiming for full-capacity operation by the end of 2026 or early 2027. He highlighted that the project represents a major step in building technological capacity, ensuring energy security, and promoting industrialization in Bangladesh.

the minister’s comments are especially welcome.

the BNP government, now into its third month, has not dumped RNPP just because it was started by Sheikh Hasina’s government which had been overthrown by a student-led mass movement two years ago.

it seems the new government is willing to accept the positives of the past government despite political bitterness. RNPP, located in Ishwardi of Pabna along the Padma River, would not have been possible without support from Russia. Divided in two equal units It has a capacity of producing 2,400 megawatts of electricity making up 10 percent of the country’s installed capacity.

it has the sophisticated Reactor Model Generation III+VVER-1200, Fuel type – Uranium enriched to 5%, Fuel supplier TVL (Russia) with operator Bangladesh Atomic Energy Commission.

the Main contractor JSC Atomstroyexport is also from Russia. With a life span of 60 years the cost of the construction has now escalated to USD13b, a lion share of it loaned by Russia. Russia’s state-run TVL Fuel Company, which is providing the fuel, has agreed to take back the spent fuel in addressing a major safety and environmental concern.

the fuel loading may take about 45 days and the reactor core would be warmed up within three months by withdrawing neutron absorbers, according to project of?cials.

electricity will be generated on a trial basis and fed into the national grid within three months. ‘If the commissioning progresses smoothly, we expect to add a minimum of 300 megawatts by July or early August to the national grid. Production will then increase gradually by 10 to 15 percent, reaching the ceiling of 1,200 mw by late 2026 or early 2027,’ Md Anwar Hossain, secretary at the science and technology ministry, was quoted as saying by the Daily Star newspaper.

there is a caveat though. Will the reciprocal trade deal Bangladesh’s interim Yunus government signed with the US just three days before the February 12 national polls stand in the way of RNPP and deprive the people of Bangladesh of enjoying its full bene?ts. The much-maligned agreement has compromised Bangladesh’s trading sovereignty and there is fear that Washington may use it in preventing import of nuclear fuel from Russia because of sanctions imposed on it following the Ukraine war.

the operation of the nuclear plant may be in jeopardy if the agreement prevents the import of uranium or fuel rods from Russia. RNPP is the largest of the country’s mega projects. Some have called it a potential ‘white elephant.’ It has been built despite the criticisms and concerns regarding high ?nancial costs and debt and safety risks. Yet, supporters see RNPP as a cheap and safe source of energy and a way out to cut dependence on import of more expensive fossil fuel.

Finance and Planning Minister Amir Khasru Mahmud Chowdhury has said that the recent adjustment in domestic fuel prices was driven by global market volatility, not by any conditions imposed by the International Monetary Fund (IMF). Speaking to reporters at the Ministry of Finance in Dhaka recently, the minister said the government had delayed increasing fuel prices for as long as possible to protect citizens, even as pressure mounted on national ?nances. ‘The government held off on raising prices despite depleting funds, prioritizing public interest,’ he said. He noted that fuel prices have risen sharply worldwide, citing examples such as the United States-where prices reportedly doubled-and Sri Lanka, where prices increased by around 25 percent.

the minister emphasized that the decision to raise fuel prices was taken independently to manage the upcoming national budget and ease pressure on the treasury.

Prime Minister Tarique Rahman has proposed forming a 10-member committee comprising lawmakers from both ruling and opposition parties to work collectively in the national interest to ?nd a ‘reasonable solution’ to the ongoing energy crisis in the country. The Prime Minister placed the proposal in the Jatiya Sangsad (JS) recently, saying that the committee will include an equal number of ?ve members each from the government and the opposition sides. Speaker Ha?z Uddin Ahmad, Bir Bikram, was in the chair.

the Prime Minister announced names of ?ve treasury bench lawmakers and called upon the opposition to provide ?ve names from their side. The Leader of the House said that the proposed committee would be headed by Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood. Four other treasury bench lawmakers are: State Minister for Power, Energy and Mineral Resources Aninda Islam Amit, ABM Ashraf Uddin Nizan (Laxmipur-4), Moinul Islam Khan Shanto (Manikganj-2) and Miah Nuruddin Ahmad Apu (Shariatpur-3).