Category: Energy and Power

Bangladesh has signifi cantly increased its purchases of expensive spot liquefi ed natural gas (LNG) after three key suppliers suspended contracted deliveries by invoking force majeure amid the recent Middle East conflict.

According to energy sector sources, QatarEnergy, OQ Trading International of Oman and Excelerate Energy of the United States have temporarily halted LNG shipments under fi ve sales and purchase agreements (SPAs), citing disruptions linked to the Iran-Israel conflict and the Strait of Hormuz.

The suppliers have reportedly extended their force majeure notices through mid-July, forcing state-owned Petrobangla to rely heavily on the volatile spot market to maintain domestic gas supplies.

Offi cials said Bangladesh has purchased 33 spot LNG cargoes so far in 2026, including 31 cargoes after the Middle East conflict began, with a record seven spot cargoes imported in each of April, May, June and July

The government is moving towards a new urban planning policy that will ensure Bangladesh’s cities are designed to coexist with rain, water and the realities of climate change, State Minister for Planning Zonayed Abdur Rahim Saki has said.

Speaking at the inauguration of the exhibition ‘Dialogues in Coexistence: Shaping Inclusive Public Spaces in the Bengal Delta’ at Bengal Shilpalay in Dhaka, Saki said future urban development would focus on making public spaces, architecture and city planning more responsive to Bangladesh’s geographical and environmental conditions.

‘Cities must be designed to coexist with rain, water and climate realities, instead of treating them as disruptions,’ he said.

The minister said the government is giving priority to preparing comprehensive master plans for Dhaka and all divisional cities, with similar planning initiatives to be gradually extended to district and upazila towns

Power and energy minister Iqbal Hasan Mahmood recently said the government was prioritizing private investment to achieve its target of generating 10,000 megawatts of solar electricity by 2030.

He said that they were also accelerating new gas exploration onshore and offshore to address the country’s long-standing gas shortage.

Speaking during the general discussion on the proposed national budget for the fi nancial year 2026-27 at the budget session of the 13th Jatiya Sangsad, the minister said that the international bidding process for new exploration blocks was expected to be completed by November this year.

Iqbal Hasan said that the government had introduced tax exemptions and customs duty waivers on solar equipment and batteries, along with tax holidays until 2031, to attract both domestic and foreign investments in the renewable energy sector.

He said that alongside solar power, investments would also be encouraged in wind energy and waste-to-energy projects

Japan International Cooperation Agency (JICA) President Tanaka Akihiko has reaffi rmed Japan’s longterm commitment to Bangladesh, describing the MoheshkhaliMatarbari Integrated Infrastructure Development Initiative as a key project for strengthening the country’s energy security and trade connectivity.

During his fi ve-day visit to Bangladesh, Tanaka inspected the Matarbari power plant and deep-sea port, saying the project would play a vital role in supporting Bangladesh’s economic growth while advancing Japan’s ‘Updated Free and Open Indo-Pacifi c’ vision.

He also met Prime Minister Tarique Rahman and senior government ministers to discuss progress on major Japanese-backed infrastructure projects, including the Dhaka Metro Rail, Hazrat Shahjalal International Airport’s third terminal, the Bangladesh Special Economic Zone, and regional energy cooperation under the POWERR Asia initiative.

Global natural gas demand is projected to decline by 0.5% in 2026 as tighter supplies and higher prices curb consumption across major markets, according to the International Energy Agency’s (IEA) latest Gas Market Report.

The IEA said global gas consumption is on track to contract for the third time in seven years, driven by weaker demand from the power and industrial sectors.

The downturn follows disruptions to LNG shipments through the Strait of Hormuz, a critical route that previously handled about 20% of global LNG trade.

Although LNG tanker traffi c has gradually resumed following a temporary ceasefi re between the United States and Iran, volumes remain below pre-conflict levels, while gas prices in Asia and Europe continue to stay well above 2025 averages.

The report notes that LNG production from Qatar and the United Arab Emirates fell by nearly 80% during MarchJune compared with the same period last year

Load-shedding has reached alarming levels across Gazipur city and other parts of the district amid the ongoing intense heat.

Frequent power cuts, often lasting for hours during both the day and night, have disrupted daily life and caused severe hardship for residents.

Repeated outages are also hampering industrial production, inflicting signifi cant losses on factories and businesses.

Areas including Tongi, Gazipur Sadar, Joydebpur, Chandana Chowrasta, Board Bazar, Konabari, Kashimpur, Gacha, and Pubail are experiencing power cuts everyone to one and a half hours.

In some places, electricity remains unavailable for one hour, while in others, outages last up to two hours.

Residents of Kapasia, Sreepur, Kaliganj, and Kaliakair have complained that electricity remains unavailable for as long as 10 to 12 hours a day.

According to locals, power outages occur four to fi ve times daily, severely affecting industrial activities.

Renewable energy now accounts for more than 30% of global electricity generation, but progress toward achieving universal access to affordable, reliable and clean energy by 2030 remains too slow, according to the 2026 Energy Progress Report.

The report, jointly prepared by the International Energy Agency (IEA), International Renewable Energy Agency (IRENA), UN DESA, the World Bank, and the World Health Organization (WHO), highlights signifi cant advances in renewable power while warning of persistent regional disparities and slowing improvements in energy effi ciency.

Sub-Saharan Africa remains the biggest challenge, with more than 560 million people still lacking electricity and 970 million without access to clean cooking.

The report estimates that the region’s electrifi cation rate must triple to achieve universal energy access by 2030.

Although renewable electricity continues to expand rapidly, the report notes that the use of renewables in the heating and transport sectors remains limited.

It also fi nds that global energy effi ciency improvements slowed to 1.5% in 2023, down from 2.4% in 2022, raising concerns about meeting climate and energy targets.

The Power Division recently held a nationwide virtual meeting to assess complaints of unusually high electricity bills issued in June and the prevailing load shedding across the country.

The meeting, conducted via Zoom, was chaired by Power Division Secretary Mirana Mahrukh and attended by senior ministry offi cials, divisional commissioners, deputy commissioners (DCs) from across the country, and representatives of electricity distribution utilities and companies.

During the meeting, offi cials sought to identify the reasons behind complaints of abnormally high electricity bills and gathered fi eld-level feedback on load shedding.

The latest progress on the installation of net meters under rooftop solar systems was also reviewed.

Offi cials noted that a signifi cant number of electricity consumers complained through the media and social media about receiving unusually high bills for June

The International Islamic Trade Finance Corporation (ITFC) has raised its trade fi nance facility for Bangladesh to $3.3 billion for fi scal year 2026-27 to support imports of fuel oil, liquefi ed natural gas (LNG) and fertilizer.

The fi nancing marks a sharp rise from $2.23 billion provided in the previous fi scal year.

A fi nancing agreement was signed in Jeddah recently to that end, said a senior offi cial at the Economic Relations Division (ERD).

ERD Secretary Md Shahriar Kader Siddiky and ITFC Chief Executive Offi cer Adeeb Yousuf Al Aama signed the agreement.

According to ERD offi cials, the package includes $2.5 billion for the Bangladesh Petroleum Corporation (BPC) to import fuel oil, $600 million for LNG imports and the rest is for fertilizer imports.

Bangladesh has reached a defi ning moment in its energy journey.

What was once viewed as a temporary gas shortage has evolved into a structural crisis that threatens industrial growth, export competitiveness, and long-term economic stability.

The country’s increasing dependence on imported energy, combined with declining domestic gas production and an uncertain geopolitical environment, has left little room for complacency.

The warning signs are unmistakable.

Domestic gas output continues to fall while demand keeps rising.

Existing LNG infrastructure is operating near its limits, yet new import facilities remain years away.

At the same time, industries are paying higher energy prices without receiving reliable gas or electricity, eroding productivity and discouraging investment.

Bangladesh cannot afford a fragmented approach to energy policy.

Expanding LNG imports is necessary, but it cannot become the only strategy.

Accelerating onshore exploration, encouraging offshore investment, developing stranded gas discoveries such as Bhola, and strengthening the institutions responsible for energy planning must become national priorities.

Delays in infrastructure development only increase future costs and deepen supply risks.

Investors need policy certainty, while energy institutions require greater technical capacity and operational autonomy to execute complex projects effi ciently.

The country’s economic ambitions depend on secure, affordable, and reliable energy.

Without it, Bangladesh risks losing competitiveness at a time when regional rivals are investing aggressively in energy infrastructure.

The energy challenge is no longer simply about producing more gas or importing more LNG.

It is about building a resilient energy system capable of supporting development for decades to come