Category: Energy and Power

Kent has been awarded the FEED contract for the Prinos CO2 storage project in Northern Greece.

energean subsidiary EnEarth has asked Kent to perform front-end engineering design (FEED) for the Prinos CO2 storage project offshore northern Greece. Kent’s scope related to the planned CO2 handling and storage facility, which will receive, store, transport and inject CO2 into the Prinos aquifer beneath the existing reservoir.

the project is said to be the ?rst of its type in the Mediterranean Sea to secure an environmental permit and a storage permit

A prudent downward readjustment of multilayer import taxes on petroleum products is highly recommended by economists as an option to avoid the Mideast warfueled hikes in fuel prices.

another exigent remedy shown is a cut in BPC pro?t to skirt both tax lowering and price increase for consumer at this hour of incomesapping high in?ation. Global oil prices rose above $119 per barrel Mondaythe sharpest increase since 2022–amid the expanding con?ict involving the United States-Israel duo and Iran.

the tariff readjustment would help keep domestic fuel prices stable without hurting government revenue economists suggest. Some major decisions on energy security may emerge from a vital meeting discussion today (Wednesday’, energy ministry of?cials have said.

The price of jet fuel in Bangladesh has been increased by Tk 89.59 per liter, according to a new announcement by the Bangladesh Energy Regulatory Commission. Following the hike, jet fuel prices for domestic routes have risen from Tk 112.41 to Tk 202 per liter. For international routes, the price has been increased from 73.84 cents to $1.32 per liter. BERC said the adjustment was made to align local prices with the international market.

this marks the second price increase in March, after an earlier hike on March 8.

a separate attempt to raise prices on March 18 was brie?y announced but later suspended within minutes.

Disruptions to oil and gas ?ows through the Strait of Hormuz are beginning to affect global energy markets, even though upstream oil production facilities have largely remained untouched by recent attacks.

according to the International Energy Agency (IEA), the interruption of shipping through the vital waterway has already forced some operators to shut in production, while the region’s output of re?ned petroleum products and lique?ed natural gas (LNG) has also been signi?cantly affected. Global energy prices have reacted sharply.

as of March 3, Brent crude futures had risen 12 percent since February 27, while the Dutch TTF benchmark for European natural gas surged more than 70 percent. Markets for re?ned petroleum products- particularly diesel and jet fuel-have been especially volatile. Despite these shocks, the global oil market has remained in surplus since the start of 2025. Before the latest military escalation on February 28, supply was already expected to exceed demand well into 2026. However, the IEA warns that prolonged supply disruptions could quickly shift the market into de?cit. Global oil inventories reached more than 8.2 billion barrels in 2025, the highest level since 2021, providing a buffer against supply shocks.

iEA member countries hold more than 1.2 billion barrels in public emergency reserves, alongside roughly 600 million barrels in industry stocks maintained under government obligation.

these reserves could be released to stabilize markets if needed. Natural gas markets, however, remain tight.

although the sector gradually stabilized after the shock caused by Russia’s invasion of Ukraine in 2022, storage levels in the Northern Hemisphere are now relatively low following the winter heating season. This is expected to increase demand for LNG in the coming months. Concerns have intensi?ed after an attack on Qatar’s Ras Laffan facility on March 2 forced a shutdown of production.

the complex, the world’s largest LNG facility, produced about 112 billion cubic meters of LNG in 2025, along with signi?cant volumes of lique?ed petroleum gas and condensate.

any prolonged disruption there could further strain already tight gas markets.

at the center of these risks is the Strait of Hormuz-a narrow but crucial maritime corridor linking the Persian Gulf with the Arabian Sea. In 2025, about 20 million barrels per day of crude oil and re?ned products passed through the strait, accounting for roughly one-quarter of global seaborne oil trade.

options for bypassing the strait are limited.

only Saudi Arabia and the United Arab Emirates have pipelines capable of partially rerouting exports, with combined spare capacity estimated at between 3.5 million and 5.5 million barrels per day. Most other producers in the region rely heavily on the strait to transport their exports.

the LNG market faces even greater vulnerability. More than 110 billion cubic meters of LNG-nearly one-?fth of global trade-passed through the strait in 2025, with Qatar and the UAE responsible for the overwhelming majority. Because there are no alternative export routes, any prolonged disruption could force countries with long-term supply contracts to turn to the spot market, driving natural gas prices higher worldwide.

After the US’s Excelerate Energy, Middle East’s QatarEnergy has started supplying LNG to Bangladesh under its second long-term sales and purchase agreement (SPA).

the ?rst LNG cargo from QatarEnergy under its second SPA reached the Moheshkhali ?oating storage and regasi?cation unit, operated by the US-based company, and successfully delivered the LNG in the week ending February 20-27, a senior Petrobangla of?cial said.

the Qatari cargo carried around 138,000 cubic meters of LNG, he said. Bangladesh signed, on June 1, 2023, a long-term LNG supply deal with QatarEnergy for up to 1.5 million tonnes per year (Mtpa) for a 15-year period starting in 2026.

the SPA, inked in Doha, has two components: for 2026, the ?rst year of the deal, QatarEnergy will supply 12 LNG cargoes to Bangladesh, with the option of adding another 12 cargoes under speci?c conditions, said the Petrobangla of?cial.

The Minimum Wage Board has proposed a new minimum monthly wage of Tk 13,275 for workers in the battery manufacturing sector.

under the proposal, workers would also receive a 5.0 per cent annual wage increment, along with a risk allowance for those directly engaged in the sector. The Board under the Ministry of Labour and Employment issued a noti?cation on February 10, announcing the proposal and inviting objections or recommendations within 14 days of publication.

according to the draft proposal, a Grade Four worker would receive a minimum monthly wage of Tk 13,275, including Tk 6,650 as basic pay.

a house rent allowance of Tk 3325, equivalent to 50 per cent of the basic pay, will be provided. Besides, they are entitled to Tk 1,300 as medical allowance, Tk 1000 as transportation allowance, and Tk 1,000 as risk allowance.

The domestic lique?ed petroleum gas (LPG) market is undergoing a shake-up as stricter banking rules during the interim government have altered who can import fuel. As a result, some of the largest players have been sidelined, while emerging companies are rapidly expanding their footprint.

two former key market players, Bashundhara LP Gas Ltd and Beximco LPG, have effectively been excluded from direct imports since the 2024 political changeover and the subsequent formation of the interim government. Meanwhile, Meghna Fresh LPG Ltd, Jamuna Spacetech Joint Venture and United Aygaz LPG Ltd have gradually increased their market share up to ?scal year (FY) 2025.

according to National Board of Revenue (NBR) data, LPG imports rose from 12.23 lakh tonnes in 2023 to 14.42 lakh tonnes in 2024, and 14.47 lakh tonnes in 2025.

in the ?rst two months of 2026, up to February 24, some 13 companies imported 2.13 lakh tonnes, signaling a strong start to the year.

Bangladesh could face mounting energy and ?nancial pressures amid rising tensions between the United States and Iran, with concerns growing over possible disruptions in the Strait of Hormuz, a key route for the country’s energy imports. With 65-70 percent of the nation’s energy demand met through imports-primarily Lique?ed Natural Gas (LNG), crude oil, and Lique?ed Petroleum Gas (LPG)- sector experts warn that a prolonged regional war could paralyze the economy.

the Strait of Hormuz is the world’s most vital oil transit point. Reports indicate that Iran’s Revolutionary Guard has begun transmitting radio warnings that vessels may be barred from the passage. If the Strait is of?cially closed, international research agencies forecast that crude oil prices could surge to between USD $95 and $110 per barrel. For Bangladesh, this is a direct threat.

Bangladesh must prioritize boosting investment, strengthening energy supply, and supporting private sector growth to generate jobs for its expanding workforce, economists and business leaders said at a recent policy dialogue.

they also called for decisive action against willful loan defaulters and deeper ?nancial sector reforms, warning that the country’s banking system remains fragile amid rising nonperforming loans and weak credit growth.

the observations were made at a roundtable titled ‘Looking into Bangladesh’s development: priorities for the newly elected government in the short term to medium term,’ jointly organized by the Centre for Policy Dialogue (CPD) and The Daily Star in Dhaka.

economy under Strain Speaking at the event, Sadiq Ahmed, vice chairman of the Policy Research Institute of Bangladesh, said the country is facing a precarious economic situation. GDP growth slowed to around 3.5 percent in ?scal year 2024-25, while unemployment among educated youth has climbed above 10 percent. Poverty is also rising, underemployment remains widespread, and in?ation persists at about 8.5 percent-nearly three times the global average. Moderating the discussion, CPD Executive Director Fahmida Khatun said weak private investment and declining credit growth are limiting economic expansion and employment opportunities. She emphasized that improving the investment climate and revitalizing private sector activity are essential for job creation. Restoring macroeconomic stability, ensuring policy predictability, and reducing regulatory complexity would help attract both domestic and foreign investment, she said. Fahmida also highlighted the need to expand the tax base and strengthen governance in the ?nancial sector to support sustainable growth. M Masrur Reza, chairman and CEO of Policy Exchange Bangladesh, said the new government has inherited a fragile economy and must restore ?scal discipline, pointing to weak revenue mobilization, rising public debt, and inef?cient spending. Banking Sector Challenges Participants identi?ed the banking system as a major bottleneck to economic recovery. Nonperforming loans continue to rise, depositor con?dence has weakened, and private sector credit growth remains sluggish.

aK Azad, vice president of ICC Bangladesh, warned that heavy government borrowing from banks is crowding out private sector lending. He called for strict action against willful defaulters to restore discipline in the ?nancial system. Md Main Uddin, a professor at the University of Dhaka, criticized policies that allow repeated loan restructuring with minimal down payments, arguing that such measures only provide temporary relief.

energy and Policy Implementation Energy supply constraints were also highlighted as a major obstacle to industrial expansion. Sha?qul Alam, lead energy analyst at the Institute for Energy Economics and Financial Analysis, noted that Bangladesh’s growing dependence on imported fuel has increased vulnerability to global price shocks. He called for greater investment in domestic gas exploration, energy ef?ciency, and renewable power to ensure reliable electricity for industries. Mahfuz Anam, editor and publisher of The Daily Star, observed that Bangladesh often formulates sound policies but struggles with execution. Bureaucratic processes frequently slow decision-making and delay development projects, he said. He suggested expanding digitalization across ministries to improve ef?ciency and reduce irregularities, along with forming independent advisory groups to guide reforms. Business leaders also urged administrative reforms, including streamlining foreign investment approvals, introducing a single-window system, and strengthening support for small and medium enterprises as Bangladesh prepares to graduate from the Least Developed Country category.

The war in the Middle East and the Gulf region has taken an alarming turn as Iran and the Israel-US alliance have begun targeting oil installations and pipelines. Several re?neries in Iran, as well as facilities in Bahrain and Saudi Arabia, have reportedly caught ?re. LNG infrastructure in Qatar has also been targeted. Fires at oil re?neries have triggered acid rain in Tehran and surrounding areas.

oil prices have already jumped to around $110 per barrel and could rise to $150 or beyond if the con?ict intensi?es further. Global stock markets have tumbled, and the energy sector worldwide is now facing a major crisis.

the Middle East and Iran play a crucial role in the global energy market.

iran is the fourth-largest producer of oil and the third-largest producer of dry natural gas. Meanwhile, Saudi Arabia, the UAE, and Kuwait are among the world’s leading crude oil exporters, while Qatar is the largest exporter of lique?ed natural gas (LNG). Strikes and damage across the Arab Gulf region indicate a rapidly escalating risk. Fires at Ras Laffan and Ras Tanura, along with reduced shipping traf?c through the Strait of Hormuz, have already pushed oil prices higher. While an intentional or accidental attack on major infrastructure could cause signi?cant casualties and damage, several factors suggest that the current intensity of the con?ict may be dif?cult to sustain for long. Now that the con?icting parties have chosen the self-defeating path of attacking oil and LNG infrastructure, the consequences are already affecting the energy security of major fuel-importing countries.

the Arab and Persian Gulf states are not direct participants in the con?ict, yet they are bearing the consequences for hosting U.S. military bases that are used to launch operations in the region. For obvious reasons, the present pace of strikes cannot continue inde?nitely. U.S.

and Israeli forces claim they are steadily degrading Iran’s missile and drone capabilities.

at the same time, interceptor missile stocks in Gulf countries are reportedly declining.

the United States and Israel also claim to have established air superiority over Iran, which could allow them to rely more on aircraft-delivered munitions and more precise targeting of drones and other aerial threats.

iran’s strategy appears to involve striking as many targets as possible, including air bases, embassies, hotels, and other locations associated with American presence.

the reported assassination of Ayatollah Ruhollah Khomeini has further strengthened Iranian resolve, and the country may continue ?ghting with determination. Reports suggest that ?eld commanders have been given authority to launch attacks without centralized coordination.

in a con?ict spread over such a wide area, this decentralized approach may explain the scattered and sporadic nature of Iran’s attacks.

iran has not completely closed the Strait of Hormuz, largely because its own oil exports to China depend on that route. However, Tehran has declared that ships carrying cargo destined for the United States, Israel, or Western countries will not be allowed passage. Meanwhile, attacks on re?neries and LNG infrastructure threaten to severely weaken the region’s ability to maintain energy exports.

arab countries and China have already begun diplomatic discussions aimed at persuading the con?icting parties to agree to a cease?re.

the crisis has also complicated the task of OPEC+, which was already facing mounting ?scal pressures on key producers such as Saudi Arabia. With the U.S.

and Israeli attacks on Iran and Tehran’s retaliatory strikes across the region, the short-term balance between global supply and demand has become far more uncertain. Volatility and price swings in crude oil markets are therefore likely to persist for months-even if the con?ict ends quickly.

a prolonged or unstable outcome, marked by intermittent violence over months or years, would make energy markets even more unpredictable.

this year will test OPEC+’s ability to manage global oil markets.

the impact is already being felt worldwide.

in Australia, for example, fuel prices are rising sharply. Diesel prices have increased from about AUS$0.90 to AUS$2.20 in cities, and up to AUS$3.50-4.00 in remote areas.

the situation is even more concerning for Asian countries that rely heavily on energy supplies from the Middle East.

the ongoing con?ict has also created new uncertainty around Qatar’s massive LNG expansion projects.

the North Field expansion, designed to increase LNG export capacity from 77 million tonnes per annum (mtpa) today to 110 mtpa by 2027 and potentially 126 mtpa by the end of the decade, has been central to expectations of abundant LNG supply later in the decade. LNG megaprojects depend on tightly managed engineering schedules, and smooth supply chains.

even temporary disruptions around Qatar’s export hub at Ras Laffan, or heightened security risks in the Gulf, could delay the commissioning of new liquefaction trains. Rising insurance costs and shipping ‘war premiums’ for vessels passing through the Strait of Hormuz could also delay deliveries of critical equipment. QatarEnergy has already announced a delay in its 33 mtpa North Field East project, now expected to start operations toward the end of 2026 rather than mid-2026.

a delay of six to twelve months would remove substantial LNG volumes from global markets at a time when buyers had expected lower prices in 2027-28.

the con?ict also raises concerns about the future management of the massive gas reservoir shared by Qatar and Iran. The ?eld contains about 51 trillion cubic meters of gas in place, including roughly 25 trillion cubic meters of recoverable reserves in Qatari waters and about 14 trillion cubic meters in Iranian waters.

effective reservoir management requires coordination between the two countries because production on one side can in?uence pressure and gas migration on the other. Political instability in Iran or a shift toward resource nationalism could complicate this cooperation and create uncertainty for long-term development of the ?eld.

the current con?ict therefore threatens not only present fuel supply chains but also future energy investments and expansion projects.

the immediate impact of attacks and counterattacks on oil and LNG infrastructure is already visible in rising prices and supply disruptions. Countries such as Japan, South Korea, China, and Taiwan, which rely heavily on Middle Eastern energy supplies, have already expressed concern.

india has received temporary relief after the United States allowed it to continue purchasing oil from Russia. Bangladesh could also bene?t if it manages to increase fuel imports from India and China. However, it remains unclear what provisions were included in contracts recently concluded by Bangladesh’s interim government with Japan and the United States.

it is hoped that effective diplomacy will soon bring the con?icting parties back to negotiations. For Bangladesh, the priority is managing the situation prudently.

the country may have no choice but to signi?cantly reduce the use of petroleum products, particularly diesel, and manage with limited LNG supplies.

the government has already imposed restrictions on the sale of petroleum products to automobiles, which appears to be a sensible step. However, there is no reason for panic yet.

the irrigation season has already ended, and irrigation pumps are the largest consumers of diesel.

if fuel use in transportation is carefully managed, the situation may remain manageable.

india has resumed supplying diesel through the cross-border pipeline, and several ships carrying crude oil and LNG have already reached Bangladesh. The government must therefore focus on managing demand through strict monitoring.

at a time resembling a fuel famine, luxurious or wasteful use of electricity and fuel cannot be justi?ed. Gas supply should also be restored soon to at least two ef?cient fertilizer plants-KAFCO and the modern fertilizer plant at Ghorashal. While people can survive without electricity for limited periods, prolonged shutdown of fertilizer plants would harm agriculture and threaten food security.

as Arab and Persian Gulf countries are major suppliers of oil, LNG, and fertilizers, Bangladesh must pursue aggressive diplomacy to identify alternative sources.

at the same time, it must recognize that every new strike on oil and gas infrastructure is pushing global prices higher. Bangladesh may therefore have to cut costs in other sectors in order to allocate more resources for fuel imports. Ultimately, everyone hopes that the con?ict will end soon and that normal global energy trade can resume.