Category: Energy and Power

The latest escalation in the Middle East involving the United States, Israel, and Iran has once again demonstrated how quickly geopolitical con?icts can disrupt global energy markets.

on February 28, the United States and Israel launched a coordinated attack on Iran, targeting key military and political leaders as well as strategic infrastructure.

iran responded by launching retaliatory strikes on U.S. military installations and diplomatic facilities across the Middle East. More critically, Tehran moved to close the Strait of Hormuz, one of the most vital maritime energy corridors in the world.

the con?ict has now continued for nearly two weeks, and its consequences are increasingly being felt across the global economy, particularly in energy markets.

the disruption of the Strait of Hormuz immediately triggered a shock in global oil and gas markets. Nearly 21 million barrels of oil, about one-?fth of global supply and roughly 20 percent of the world’s LNG shipments pass through this narrow waterway every day.

once shipping activity slowed dramatically, energy supply chains across the world were affected. Global oil prices quickly surged from around $67 per barrel before the war to nearly $97, brie?y crossing the $100 mark as markets reacted to supply uncertainty.

according to several energy analysts, if the con?ict continues or further escalates, oil prices could potentially climb to $150 per barrel, which would have far-reaching consequences for the global economy. However, the disruption of the Strait of Hormuz is not the only factor threatening global energy security.

the war has also intensi?ed risks to energy infrastructure across the Gulf region.

iranian drone and missile attacks targeting energy facilities in countries such as Saudi Arabia, Qatar, and the United Arab Emirates have temporarily halted operations in several oil re?neries, LNG plants, and export terminals.

these attacks have interrupted re?ning activities and reduced LNG export capacity, adding further pressure to already strained global gas markets.

at the same time, several major oilproducing countries in the Gulf have reduced production or temporarily suspended exports as storage facilities ?ll up and shipping routes become increasingly uncertain. Major exporters such as Iraq and Kuwait have faced delays in shipping crude oil to international markets.

at one stage, shipments of nearly 140 million barrels of oil were delayed, equivalent to approximately 1.4 days of global demand.

these disruptions highlight how con?ict in the Middle East canrapidly tighten global supply and push prices upward. Countries around the world have already begun responding to the crisis. Vietnam increased diesel and petrol prices by 21 percent, while Pakistan saw petrol prices rise by nearly 20 percent, reaching around 320 rupees per liter. Governments across Asia are now exploring alternative energy supply routes and increasing their fuel reserves to reduce the impact of supply disruptions.

the Group of Seven ?nance ministers has also discussed the possibility of releasing emergency oil reserves to stabilize global markets.

the current situation also echoes the global energy shock triggered by the Russia-Ukraine War.

that con?ict severely disrupted natural gas supplies to Europe and caused a dramatic surge in LNG prices across global markets.

as European countries competed aggressively for LNG cargoes, many developing economies, including Bangladesh, struggled to secure suf?cient fuel supplies.

the present con?ict in the Middle East risks creating a similar situation, particularly if disruptions to LNG exports from the Gulf persist. For energy-import-dependent countries, especially in Asia, the implications of this war are signi?cant. Bangladesh, which relies heavily on imported fossil fuels and maintains limited strategic reserves, faces particular vulnerability. The ongoing con?ict, therefore, not only threatens immediate fuel supply stability but also raises urgent questions about how Bangladesh should strengthen its long-term energy security strategy in an increasingly uncertain geopolitical environment. Bangladesh’s energy sector has become increasingly dependent on imported fossil fuels in recent years. Nearly 92 percent of the country’s fuel oil requirements are imported, mostly from Middle Eastern producers such as Saudi Arabia and the United Arab Emirates.

on the gas side, Bangladesh imports about ?ve to six million tonnes of LNG annually, primarily from Qatar and Oman. Diesel plays a particularly critical role in the national economy. Approximately 70 percent of the fuel supplied by the Bangladesh Petroleum Corporation consists of diesel, which is widely used in agriculture, transportation, and industrial activities. As global diesel prices surged from $88 to around $146 per barrel following the outbreak of the war, Bangladesh faced the prospect of signi?cantly higher import costs. Domestic re?ning capacity also remains limited.

eastern Re?nery Limited supplies only a small portion of the country’s diesel demand by re?ning crude oil imported mainly from Saudi Arabia and the United Arab Emirates.

after the war began, supplies of crude oil to the re?nery were temporarily disrupted. Current reserves can sustain re?nery operations only until the middle of the coming month. Bangladesh also imports a large share of re?ned petroleum products from countries such as Singapore, China, Malaysia, Indonesia, Kuwait, Thailand, Oman, and India.

the government has already begun exploring additional sources to avoid potential supply disruptions.

impact on Key Sectors in Bangladesh The energy crisis triggered by the con?ict could signi?cantly affect Bangladesh’s industry, agriculture, transport, and remittance sector. Manufacturing industries, particularly textiles, garments, steel, cement, and fertilizer production, depend heavily on a stable electricity and gas supply. Bangladesh has an installed electricity generation capacity of more than 29,000 megawatts, yet the full capacity is rarely utilized due to gas shortages and maintenance issues. More than 6,000 megawatts of generation capacity remains unused because of insuf?cient gas supply. During peak demand, the effective generation capacity falls to around 18,600 megawatts. When global fuel prices rise, the cost of LNG, furnace oil, and coal imports increases, leading to higher electricity generation costs.

this often results in load-shedding, forcing factories to reduce production hours or temporarily shut down operations. Such disruptions can weaken Bangladesh’s export competitiveness, particularly in the ready-made garment sector.

at the same time, higher energy costs in global markets are increasing prices of basic goods in major consumer markets such as Europe, North America, and Australia.

as households in those countries spend more on essentials, demand for non-essential products like garments may decline, potentially reducing export orders for Bangladesh.

transportation is one of the sectors most immediately affected by ?uctuations in fuel prices.

in Bangladesh, diesel remains the primary fuel used by trucks, buses, and other commercial transport vehicles. When international diesel prices rise, domestic transportation costs increase accordingly. Higher fuel costs raise the expense of moving goods across the country, which in turn increases the prices of food products and other consumer commodities.

as a result, both passenger transport and the distribution of essential goods become more expensive, contributing to broader in?ationary pressure within the economy.

the ongoing energy crisis triggered by the Middle Eastern con?ict has also begun to disrupt the country’s domestic fuel distribution system.

in recent days, long queues have been observed at CNG refueling stations in major citiesas drivers struggle to access suf?cient gas supplies. Many vehicle owners are forced to wait for hours to re?ll their tanks, re?ecting the mounting pressure on the country’s already limited gas resources.

in response, the government has introduced emergency fuel management measures to control demand and ensure a more balanced distribution of available fuel.

under the new policy, private vehicle owners are permitted to purchase only 10 liters of petrol or octane per day. Although this restriction is intended as a temporary measure to prevent shortages and panic buying, it has created considerable inconvenience for commuters, transport operators, and daily wage earners who depend heavily on road transport for their livelihoods.

the situation illustrates how global energy shocks can quickly translate into everyday disruptions in an energy-import-dependent economy like Bangladesh, affecting mobility, economic activity, and the stability of supply systems.

agriculture in Bangladesh is also highly dependent on diesel fuel, particularly for irrigation.

according to the Department of Agricultural Extension, the country currently operates over 754 diesel-powered deep tube wells, more than 1,039,000 shallow tube wells, and about 184,000 low-lift pumps. Reports from rural areas indicate that diesel shortages have already begun affecting farmers. Many farmers must wait for long hours at ?lling stations, while some retailers are charging Tk 8-10 extra per liter due to limited supply. If the diesel shortage persists during critical irrigation periods, agricultural production could be affected. Reduced crop output would inevitably push up food prices and place additional pressure on the country’s food security.

the energy crisis also has direct consequences for everyday life. Rising fuel prices increase transportation costs, which in turn raise the prices of essential commodities such as rice, vegetables, and consumer goods. Higher energy costs also raise production expenses for agricultural products, processed food, and manufactured items.

as a result, households face higher living costs while wages remain relatively stagnant. For low- and middle-income families, this can signi?cantly reduce purchasing power. Rising fuel prices place additional pressure on Bangladesh’s macroeconomic stability.

as energy imports become more expensive, the country must spend more foreign currency, putting pressure on foreign exchange reserves.

at the same time, energy-driven in?ation increases the cost of living and can weaken economic growth. Bangladesh imports about 62 percent of its total energy demand, making the economy particularly vulnerable to global price shocks. The con?ict may also indirectly affect remittance ?ows.

a signi?cant share of Bangladesh’s remittances originates from migrant workers in the MiddleEastern countries.

if regional economies slow down due to prolonged con?ict, employment opportunities for migrant workers could decline, potentially affecting remittance in?ows over time.

the Way Forward: Lessons for Bangladesh Although the Bangladesh government has already undertaken some immediate initiatives to tackle the energy crises, however, these are not adequate.

the current crisis requires strengthening Bangladesh’s energy security strategy through both shortterm and long-term measures. Bangladesh can take some initiatives in the short term In the short term, Bangladesh must ensure an uninterrupted fuel supply. Diversifying import sources is essential. In addition to traditional Middle Eastern suppliers, Bangladesh should explore alternative suppliers such as India, China, Malaysia, Indonesia, and even African producers, including Nigeria.

the government should also ensure smooth ?nancing for fuel imports. State-owned banks and foreign ?nancial institutions that open letters of credit for fuel purchases must be supported with adequate foreign currency liquidity. Managing domestic fuel prices carefully is another priority. Bangladesh Petroleum Corporation recorded pro?ts of about Tk 4,700 crore in the ?scal year 2024-25, which may allow the government to temporarily absorb part of the price increase rather than immediately passing the full burden onto consumers. Bangladesh can take some initiatives in the long term In the long term, Bangladesh must adopt a more resilient energy strategy. One important step is building strategic fuel reserves capable of supporting the country during prolonged supply disruptions. Currently, Bangladesh maintains reserves suf?cient for roughly 15-20 days of consumption, which may not be adequate during major geopolitical crises.

expanding renewable energy is also essential. Solar-powered irrigation systems could signi?cantly reduce diesel consumption in agriculture, while investments in rooftop solar and wind energy could diversify the national energy mix. Bangladesh should also consider investing in overseas oil and gas ?elds to secure long-term energy supplies. Strategic participation in global energy infrastructure, such as LNG carriers and oil tankers, could further strengthen supply security. Finally, encouraging private and foreign investment in energy infrastructure will be crucial for building a more resilient energy system.

one of the most important longterm strategies for strengthening energy security in Bangladesh is to accelerate domestic gas exploration and production. Bangladesh still possesses signi?cant untapped natural gas potential both onshore and offshore, particularly in the Bay of Bengal region.

increasing exploration efforts through the national energy corporation Petrobangla and attracting international energy companies to participate in offshore bidding rounds could signi?cantly improve the country’s domestic gas supply in the long run.

Th e operational landscape of the Independent Power Producers (IPPs) in Bangladesh is currently de?ned by a paradoxical relationship between contractual obligations and ?nancial viability.

as an almost 50 percent contributor to the nation’s energy security, IPPs, particularly those operating Heavy Fuel Oil (HFO) based plants, have maintained a commitment to the national grid despite a growing liquidity crisis. Central to this crisis is the Bangladesh Power Development Board’s (BPDB) signi?cant delay in settling outstanding invoices. Reportedly, the arrears have now reached approximately Tk 14,000 crore for HFO-based producers. These payment delays often stretch between eight to ten months.

the long wait has forced many producers into ?nancial insolvency.

as a result, the affected IPPs cannot open Letters of Credit (LC) to import fuel. Subsequently, those IPPs also cannot maintain the ‘Availability Factor’, required as per respective Power Purchase Agreements (PPAs).

the root of the legal dispute lies in the imposition of Liquidated Damages (LD) by the BPDB during periods of forced outages.

the PPA provides a mechanism for the BPDB to penalize producers for the non-availability of electricity due to LD outages. Whereas, the IPPs argue and contend that these outages are a direct consequence of the BPDB’s own material breach of contract- speci?cally, the failure to make timely payments. From a legal point of view, this brings Section 13.2(j) of the standard PPA into sharp attention.

this clause entails that if the BPDB fails to settle undisputed invoices within a speci?c grace period, the producer’s contractual obligation to deliver dependable capacity (power) is effectively suspended. Such a period of suspension necessitated by the buyer’s (i.e., BPDB) default, the law advocates that the producer should remain entitled to Capacity Payments without being penalized by LD deductions.

the situation might even be complicated by looking at the role of the National Load Dispatch Center (NLDC).

iPPs are worried about how the BPDB issues instructions to NLDC. When the plantsare already struggling to buy HFO due to not being paid, the BPDB may issue dispatch instructions anyway. Industry experts note this as ‘imaginary demand’.

the goal of these orders could be triggering Liquidated Damages (LD) penalties against the IPPs, and it would be unfair if it were true.

this seems to be using the IPPs’ ?nancial struggles to arti?cially lower the debts. Such actions lead against the ‘Take-or-Pay’ model and make it much harder for the bankability of power projects to stay ?nancially viable.

the legal instance followed in the case of the Barisal Electric Power Company Limited (BEPCL) offers a noteworthy roadmap for resolution. In this precedent, the BPDB ultimately recognized that deductions (Tk 270.7 crore for outages) made during a period (between May and October 2023) of payment default were inconsistent with the protections afforded under Section 13.2(j).

this ultimately led to a reversal decision (by BPDB) of signi?cant LD penalties of BEPCL. But the LD decisions are applied differently to local vs foreign power producers, which may create market instability and threaten future investment.

it emphasizes the necessity for a harmonized legal interpretation for all IPPs that treats payment default as a ‘force majeure-like’ event. To safeguard a sustainable Bangladesh power sector, the Government should ensure that the PPAs are followed strictly and fairly.

the BPDB must cease the ongoing LD impositions for outages caused by its own lack of payment, linked to documented arrears. There should be an independent veri?cation mechanism to ensure that dispatch demands are based on genuine systemic requirements. There should also be a transparent, non-discriminatory approach for both local and foreign power producers to keep the investment climate stable and prevent capital ?ight. Protecting the legal rights (Section 13.2(j), etc.) of IPPs is essential to preserve the integrity of the energy market and for the future of the energy sector. Clearer communication and timely payments will ensure that the national grid remains reliable for everyone

Reliance Industries has signed a 15year green ammonia supply agreement with Samsung CandT Corp., marking one of the largest long-term offtake deals globally. Reliance Industries, India’s largest private-sector company, has entered into a binding long-term supply and purchase agreement (SPA) with Samsung CandT Corp.

of South Korea for the supply of green ammonia over a 15year period starting in the second half of ?scal 2029.

the agreement, valued at more than $3 billion, is among the largest long-term green ammonia offtake deals globally. It supports the development of exportoriented green fuel supply chains aligned with India’s National Green Hydrogen Mission. Reliance Industries is developing an integrated new energy platform spanning renewable generation, energy storage, green hydrogen, and downstream fuels and chemicals. The platform includes in-house manufacturing of solar modules, battery energy storage systems (BESS), and electrolyzer systems.

Information and Broadcasting Minister Zahir Uddin Swapan has emphasized the need to develop a comprehensive industrial master plan for Bangladesh’s southern region by utilizing the vast natural gas reserves discovered in Bhola. Speaking at an iftar and prayer event organized by the Barishal Division Journalists Association at the Dhaka Reporters Unity recently, he stressed the importance of strategic planning to ensure proper use of this resource. ‘This valuable resource should be used effectively to expand industrialization in the region, and skilled and thoughtful individuals must come forward with ideas,’ the minister said. He noted that the signi?cant gas reserves in Bhola could serve as the foundation for a coordinated, industry-based development plan across the southern region. Encouraging journalists, he said they could contribute by compiling data and preparing a conceptual development proposal to help guide policymakers.

Bangladesh stands at a critical crossroads in its energy journey.

the ongoing global crisis has not created new vulnerabilities-it has simply exposed long-standing weaknesses that have been ignored for too long. Heavy dependence on imported fuel, slow progress in domestic exploration, and bureaucratic delays have left the country dangerously exposed to external shocks.

the government’s renewed focus on attracting foreign investment in oil and gas exploration is a step in the right direction.

updating Production Sharing Contracts and prioritizing bidding rounds signal intent. But intent alone is not enough.

the real test lies in execution- something Bangladesh has historically struggled with in the energy sector.

one of the most pressing concerns is time.

traditional bidding processes that take two years or more are no longer viable in a fast-changing global energy market. By the time contracts are signed, economic conditions often shift, making projects less attractive or even unfeasible. Faster, more ?exible approaches-such as negotiated deals or streamlined international bidding-must be seriously considered.

equally important is the need to rethink policy rigidity. Keeping promising exploration blocks reserved while seeking foreign investment sends mixed signals to investors. A more pragmatic approach-allowing joint ventures with national entities like BAPEX-could unlock both capital and technical expertise.

ultimately, Bangladesh must recognize that energy security is not just an economic issue-it is a national priority. Without decisive action to boost domestic exploration and reduce import dependence, the country risks deeper economic instability in the years ahead.

A government committee has recommended approval of a proposal to procure two spot Lique?ed Natural Gas (LNG) cargoes, as Bangladesh continues to grapple with mounting pressure on its energy supply amid global market volatility.

the proposal, placed by the Energy and Mineral Resources Division, seeks to import two LNG cargoes under the Public Procurement Rules 2025 through an international quotation process from the spot market.

according to of?cial sources, the cargoes are scheduled for delivery on April 24-25 (10th cargo) and April 27-28 (11th cargo). Both cargoes are proposed to be purchased from TotalEnergies Gas and Power Limited of the United Kingdom at a quoted price of US$19.77 per MMBtu.

each cargo will cost more than Tk 833 crore each.

the Purchase Committee meeting has taken the move that took place at the Secretariat with Finance Minister Amir Khorsu Mahmud Chowdhury in the chair.

Australia ‘s Energy Minister Chris Bowen has warned fuel retailers against ‘dangerous’ price gouging as petrol prices surge due to panic buying triggered by the con?ict in the Middle East.

to increase supply, the government announced a 20 percent reduction in the country’s Minimum Stockholding Obligation for petrol and diesel. The move could release up to 762 million liters of fuel from Australia’s domestic reserves to ease shortages in affected regions. Bowen urged citizens to avoid panic purchasing and buy only the fuel they need, stressing that selling fuel at in?ated prices is ‘unAustralian’ and harmful to the public.

In response to Brazil unveiling its updated national climate plan, 350.org welcomed progresss on tackling deforestation but warned the plan falls short of the urgent action needed to phase out fossil fuels and tackle the growing fuel crisis engul?ng Brazil.

the new plan, the ?rst update since 2008, sets out Brazil’s pathway to cut emissions by up to 67% by 2035 and reach net zero by 2050, with a continued focus on ending deforestation, a major driver of emissions in the Amazon. However, campaigners say the plan lacks the ambition needed to rapidly transition away from oil, gas and coal, particularly as Brazil remains one of the world’s top emitters.

The newly elected Government of Bangladesh has formulated a comprehensive Five-Year Work Plan (2026-2030) aimed at restoring momentum in the energy and mineral resources sector, strengthening national energy security, and supporting sustained economic growth. The strategic roadmap places strong emphasis on accelerating domestic gas exploration, expanding LNG and fuel infrastructure, and advancing critical institutional and policy reforms. By prioritizing the timely ?nalization of production sharing contracts (PSCs), increasing drilling capacity, and modernizing re?ning, transmission, and distribution systems, the plan seeks to ensure a reliable and affordable energy supply while improving overall operational ef?ciency across the sector.

at the core of the plan is a phased and carefully sequenced approach to augmenting gas production.

this includes a target to drill as many as 180 wells by 2028, alongside the launch of deep exploration initiatives to unlock untapped hydrocarbon potential.

in parallel with upstream development, the government is prioritizing expansion of the national gas transmission network and the installation of major LNG infrastructure, including both ?oating storage and regasi?cation units (FSRUs) and land-based terminals.

the plan also incorporates modernization of the distribution segment through the large-scale rollout of smart prepaid gas meters and the integration of advanced SCADA systems to enable real-time monitoring and improved system management. Beyond infrastructure expansion, the 2026-2030 period is expected to bring signi?cant institutional restructuring. A key reform measure includes the division of Titas Gas Transmission and Distribution PLC into three separate entities to enhance governance, accountability, and operational ef?ciency. Similarly, the Bangladesh Petroleum Corporation (BPC) is set toundergo restructuring to streamline its organizational framework.

in addition, the government has outlined a phased Coal Development Plan for the Barapukuria coal?eld and has committed to investing in research and development of alternative energy sources, including green hydrogen and geothermal energy.

taken together, these initiatives are designed to position Bangladesh to meet rising energy demand while gradually transitioning toward a more diversi?ed and resilient energy mix.

through these wide-ranging initiatives, the government aims to ensure a stable and affordable energy supply, enhance ef?ciency across the sector, and support the country’s rapidly expanding economic activities, while laying the groundwork for a more secure and sustainable energy future.

enhancement of Gas Production To strengthen domestic gas supply, the government has undertaken an ambitious and multi-year drilling program.

in 2023, drilling operations were planned for 50 wells, of which 25 wells have already been completed. These completed wells have added approximately 252 MMCF of gas per day to the system, with around 129 MMCF per day already connected to the national gas grid and contributing to supply. Looking ahead, the government has set an even more ambitious target of drilling 100 wells by 2028.

if successfully implemented, this program could potentially add up to 1,000 MMCF per day to the national gas supply system, signi?cantly easing supply constraints. To support this expansion in exploration and production activities, plans are underway to procure two new drilling rigs for BAPEX, thereby strengthening its operational capacity.

in addition, four deep exploration wells, each reaching depths of approximately 5,000 meters, are planned.

these deep wells are expected to play a critical role in expanding Bangladesh’s hydrocarbon exploration frontier and identifying new reserves. Gas Production Augmentation Program A structured and phased gas production augmentation plan has been developed to increase national supply over the period from 2026 to 2030.

under the initial 180-day program, an additional 50 MMCF per day of gas will be added to the national grid. During this phase, detailed project proposals covering seven exploration wells, seven development wells, and two workovers will be prepared and submitted to the Planning Commission for approval. During the 2026-2027 period, drilling activities will cover a total of 46 wells, including eight workovers, with the objective of adding approximately 652 MMCF per day to the grid.

in the subsequent period of 2027-2028, drilling operations will expand further, with 66 wells-including 23 workovers- expected to contribute an additional 678 MMCF per day. Finally, between 2028 and 2030, drilling of 17 wells is projected to add around 200 MMCF per day to the national gas supply system. This phased approach re?ects a steady and incremental strategy to close the supply-demand gap.

oil and Gas Exploration under Production Sharing Contracts The plan for oil and gas exploration under PSCs spans the period from 2026 to 2030.

as part of the initial 100-day program, the government will ?nalize a model PSC applicable to both onshore and offshore exploration.

this is expected to provide greater clarity and attract investment from international oil companies (IOCs).

in ?scal year 2026-27, bidding rounds will be invited for both onshore and offshore oil and gas exploration blocks. During 2027-28, contracts will be signed with selected IOCs. From 2028 to 2030, the government will maintain active monitoring to ensure that exploration activities progress according to schedule and that production commences within the timeframes stipulated in the PSC agreements.

this structured timeline is intended to ensure accountability and timely development of resources. LNG Infrastructure Development To enhance energy supply stability, the government has launched a comprehensive LNG infrastructure development program.

under this plan, a fourth ?oating LNG terminal (FSRU) is proposed at Kutubjom in Maheshkhali. The project will undergo review during the initial phase, with agreements expected to be ?nalized during 2026- 2027.

installation is planned for 2027- 2028, with full commercial operation anticipated between 2028 and 2030.

in parallel, a land-based LNG terminal will be developed under a PublicPrivate Partnership (PPP) framework. Preparatory activities, including the appointment of a transaction adviser, preparation of tender documents, and updated feasibility studies, are expected to be completed by 2026-2027. Construction and commissioning of the terminal are projected for the 2028-2030 period.

additionally, proposals will be invited for another ?oating LNG terminal in the deep-sea region of southern Bangladesh, further strengthening the country’s LNG import capacity.

expansion of Gas Transmission Pipeline Network The government has also initiated a major expansion of the gas transmission pipeline network to support both domestic production and imported LNG. During the initial 180-day period, an integrated plan will be adopted to connect gas resources from Bhola to the national grid while preparing infrastructure for future LNG imports. Feasibility studies will be conducted for key pipeline routes, including Barisal-Aminbazar, Barisal-Khulna, and Barisal-Bhola. Between 2026 and 2027, the implementation framework for the Bhola-Barisal-Aminbazar pipeline will be ?nalized, and construction activities will begin.

installation will continue through 2027-2028, with the pipelines expected to be completed and commissioned during 2028-2030.

this expansion is critical for improving supply distribution and regional connectivity. Development of LPG Terminals at Patenga and Matarbari The government has prioritized the development of LPG terminals at Kattoli in Patenga and at Matarbari in Cox’s Bazar as part of its broader energy security strategy.

these projects are intended to ensure a reliable LPG supply, diversify the national fuel mix, and reduce dependence on depleting natural gas reserves. For the Patenga LPG terminal, a prefeasibility study will be conducted and a memorandum of understanding (MoU) signed within the ?rst 180 days. During this period, the implementation modality – whether government-togovernment (G2G), PPP, or other models – will be determined. By 2026-27, land transfer will be facilitated, feasibility studies completed, and consultants appointed, followed by international tendering.

in 2027-28, an EPC contract will be signed and the Front-End Engineering Design (FEED) approved. Construction of storage tanks, jetties, and pipelines will take place during 2028-2030, followed by commissioning.

a similar approach will be followed for the Matarbari LPG terminal. Initial studies and agreements will be completed within the ?rst 180 days, followed by land development, dredging, tendering, and construction. The terminal is expected to be operational by 2030, signi?cantly strengthening the country’s LPG infrastructure. Government Management of LPG Import Under the initial 180-day plan, proposals from various institutions regarding LPG import and management will be reviewed, and implementation modalities will be determined. During FY2026-27, agreements will be signed and land acquisition for infrastructure development will be completed. From FY2027 to FY2030, a structured system for LPG import and market management will be introduced, ensuring ef?cient supply, distribution, and regulatory oversight.

this initiative aims to strengthen energy security while improving market discipline. Smart Meter Installation and Digitalization The government plans to modernize the gas distribution system through large-scale smart metering and digital monitoring.

under this initiative, smart prepaid gas meters will be installed for 1.75 million customers under Titas Gas, 128,000 customers under Pashchimanchal Gas Company Limited, and 50,000 customers under Jalalabad Gas.

in addition, SCADA systems across Petrobangla and its subsidiaries will be integrated to enable real-time monitoring, improve operational ef?ciency, and enhance overall system management.

institutional Reforms in the Energy Sector Institutional restructuring forms a key component of the reform agenda. The government plans to divide Titas Gas into three separate companies by 2030 to improve governance and ef?ciency. Similarly, BPC will be restructured to reduce the number of subsidiary companies from eight to ?ve by 2026, streamlining operations and strengthening oversight. Barapukuria Coal Mine Expansion Plan The Barapukuria Coal Mine Expansion Plan has been structured as a phased roadmap. Within the ?rst 180 days, techno-economic feasibility studies for open-pit mining will be initiated.

these studies will continue through 2026-27, providing essential data for decisionmaking.

in 2027-28, feasibility studies will be completed, development projects formulated, and initial extraction activities launched. Based on these results, commercial production is expected to begin during 2028-2030, marking a transition to full-scale operations.

alternative Energy During the initial phase, feasibility studies will assess the viability of alternative energy sources.

in 2026-27, research will focus on advanced technologies, including coal bed methane, underground coal gasi?cation, coal-to-liquid conversion, and green hydrogen.

the outcomes of these studies will guide implementation, while private sector participation will be encouraged through investment opportunities.

observations The Five-Year Work Plan (2026-2030) sets out an ambitious and well-structured vision for Bangladesh’s energy sector. On paper, it addresses many of the country’s long-standing weaknesses – limited domestic exploration, infrastructure gaps, and institutional inef?ciencies. But as with many plans before it, the real challenge will lie in execution. Delivering on such a wideranging agenda within tight timelines will require not only strong political commitment but also coordination across multiple agencies that have historically struggled to work in sync. One of the most pressing concerns remains the growing mismatch between energy demand and domestic supply. Bangladesh’s economy continues to expand, and with it, energy consumption. Yet domestic gas production has not kept pace.

this gap has increasingly been ?lled by imported LNG, exposing the country to global price volatility and supply uncertainties.

the current LNG import capacity, around 1,100 MMCFD, falls well short of what is needed. Without a signi?cant and timely expansion, supply shortages are likely to persist, especially during peak demand periods.

the delays and cancellations of LNG infrastructure projects in recent years have compounded the problem. Largescale projects such as land-based LNG terminals require long gestation periods, often ?ve to seven years.

any hesitation or policy inconsistency today will translate into supply constraints several years down the line.

this makes early decision-making and continuity in implementation particularly important.

in the upstream segment, attracting international oil companies has become more dif?cult.

the global energy landscape is evolving, with companies becoming more selective about where they invest. Bangladesh, offering a limited number of offshore blocks under conventional bidding frameworks, may not appear suf?ciently competitive.

at the same time, domestic exploration efforts have yet to fully re?ect the country’s geological potential.

areas such as Chhatak remain underexplored despite indications of signi?cant reserves. Coal remains another unresolved issue. Bangladesh possesses sizable coal deposits, yet policy indecision has kept these resources largely untapped.

the Phulbari coal project, for instance, has been under discussion for years without a clear outcome.

this lack of direction creates uncertainty and limits the country’s ability to diversify its energy mix and reduce reliance on imports.

overall, while the plan is comprehensive, it highlights a familiar pattern: strong intent but persistent structural and policy constraints.

unless theseunderlying issues are addressed, even the most well-designed roadmap may struggle to deliver its intended results. Way Forward Moving forward, the government’s immediate priority should be to translate plans into action, particularly in the area of domestic gas exploration. Strengthening national institutions such as BAPEX and Petrobangla is essential – not just in terms of equipment, but also in building technical expertise and decision-making capacity. Faster drilling, better data, and more ef?cient project execution will be key to narrowing the supply gap.

at the same time, expanding LNG import capacity cannot be delayed. Given the long lead times involved, decisions taken today will determine supply conditions several years from now. Revisiting previously canceled or stalled LNG agreements could offer a quicker path forward, as renegotiating existing frameworks is often faster than starting from scratch.

ensuring that transmission and distribution networks are ready to handle increased imports will also be critical.

in offshore exploration, a more ?exible approach may be necessary. Rather than relying solely on traditional bidding rounds, the government could consider direct negotiations with major international energy companies and offer a larger portfolio of blocks. This would make Bangladesh a more attractive destination for investment in a highly competitive global market.

there is also a need to move quickly on high-potential exploration areas. Conducting detailed seismic surveys in regions like Chhatak and following up with timely drilling could yield faster results than waiting for large-scale offshore developments. Small but early successes in such areas can help build momentum and con?dence. Perhaps most importantly, the government must take a clear and consistent position on coal. Whether the decision is to develop these resources or to move away from them, clarity is essential.

if development is pursued, projects like Phulbari should be reviewed independently and implemented with modern, environmentally responsible technologies.

if not, the country must plan accordingly for alternative sources to ?ll the gap.

in the broader context, Bangladesh will need a balanced energy strategy – one that combines domestic resource development, reliable imports, institutional reform, and gradual adoption of cleaner energy sources. Just as important as the strategy itself is the ability to maintain policy continuity and follow through on commitments. In the end, steady and disciplined implementation, rather than ambitious planning alone, will determine whether the country can achieve a more secure and sustainable energy future

An 18.69 MWp rooftop solar power project ?nanced by Infrastructure Development Company Limited (IDCOL) at Akij Ceramics Limited in Trishal was of?cially inaugurated recently, marking a signi?cant milestone in Bangladesh’s transition toward cleaner energy in the industrial sector.

the inauguration ceremony was attended by Ulrich Kleppmann as the chief guest. Other notable attendees included Michael Sumser-Hellstern of KfW Development Bank, Alamgir Morshed, Executive Director and CEO of IDCOL, and S. K. Bashir Uddin, Managing Director of Akij Bashir Group.

the project has a total investment of BDT 101.47 crore, of which BDT 76.83 crore was ?nanced by IDCOL. Once fully operational, the solar facility is expected to generate around 19,500 MWh of clean electricity annually and reduce approximately 14,626 tonnes of carbon dioxide (CO2) emissions each year. Currently, 10 MWp of the installed capacity is already connected to the national grid through the net-metering system.

alamgir Morshed emphasized the growing interest from the private sector in adopting solar power. He noted that IDCOL has revised its target to ?nance 1,150 MWp of rooftop solar capacity by 2030.