Category: Energy and Power

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood on March 4 said that the government took some preparations to deal with possible temporary electricity and fuel crises amid global instability. ‘Due to the ongoing unrest in the Middle East, there is a concern for temporary crisis in the country’s energy sector,’ he said while addressing an emergency review meeting to deal with the emerging situation.

the minister chaired the meeting seeking cooperation of the common people to use electricity and fuel economical. The meeting also requested electricity users to avoid unnecessary illuminations at shopping malls, community centers and other places specially lighting and excessive usage of fuel. The government instructed traders not to sell diesel and petrol in the open markets, as law enforcement agencies will monitor the matter, according to the meeting of?cial.

The government has been implementing a series of measures to reduce system losses and maintain stable electricity tariffs. ‘If we are able to reduce system losses in the electricity, then we will be able to keep power tariff stable,’ Power, Energy and Mineral Resources minister Iqbal Hassan Mahmood said recently.

addressing an installation ceremony of Forum for Energy Reporters Bangladesh executive committee at the power and energy ministry’s conference room, Mahmood said that with transmission and distribution losses estimated around 10 percent, the power sector faces Taka 50 lakh for one percent system loss. Replying to a question the minister said the government is going to take aggressive plan for ensuring availability of gas in the country, as no gas well was dug during the last 15 years

State-run Petrobangla has initiated gas rationing as the ongoing Middle East crisis begins to pinch Bangladesh’s energy supply, of?cials said.

about 50 million cubic feet per day (mmcfd) of gas has been cut from power plants, while fertilizer factories have seen a reduction of around 140 mmcfd.

the only exception is the government-owned Shahjalal Fertilizer Company at Fenchuganj, Sylhet, which will continue operations to support agricultural production during the country’s largest rice-cropping season, of?cials added. Petrobangla Chairman Md Arfanul Hoque told reporters that the government is also facing dif?culties sourcing lique?ed natural gas (LNG) from the spot market due to disruptions to global supply. He noted that while LNG deliveries have not been cancelled, some shipments are being deferred. ‘Meetings with LNG operators are scheduled to assess supply conditions and cargo availability, and to inform them about the latest developments,’ he said.

Saudi Arabia’s state oil giant Aramco shut its Ras Tanura r e f i n e r y following a drone strike, an industry source said r e c e n t l y , after Tehran l a u n c h e d strikes across the region in response to the US-Israeli attack on Iran.

the Ras Tanura complex, on the kingdom’s Gulf coast, houses one of the Middle East’s largest re?neries with a capacity of 550,000 barrels per day (bpd) and serves as a critical export terminal for Saudi crude.

it was shut as a precautionary measure and the situation is under control, the source said.

the drone strike added to a wave of attacks on the Gulf, including on Abu Dhabi, Dubai, Doha, Manama and Oman’s commercial part of Duqm. The strikes have paralyzed major shipping hubs in the United Arab Emirates and Oman and sent Brent crude futures LCOc1 surging roughly 10%

QatarEnergy has suspended work on its the North Field Expansion (NFE) project due to the US-Iran con?ict in the Persian Gulf that began on February 28, 2026. The suspension of the NFE project is part of a cessation of LNG production at Qatar’s Ras Laffan and Mesaieed industrial cities following targeted Iranian drone strikes on these facilities. While the onshore processing plants were physically struck, offshore expansion activities (drilling and platform installation) have been effectively paralyzed by the closure of the Strait of Hormuz. Iran’s Revolutionary Guards have declared the waterway closed to all traf?c, and most international marine insurers have canceled war risk cover for vessels in the Gulf.

The 330MW Combined Cycle Power Plant at Shahjibazar in Madhabpur upazila of Habiganj has resumed partial e l e c t r i c i t y p r o d u c t i o n after remaining shut for 48 months following a ?re incident. Power generation at the plant had been suspended since 29 May 2022, when a transformer on the transmission line caught ?re. Although the blaze was quickly controlled, two of the plant’s three transformers were completely destroyed, while the third became inoperative a few days later, halting electricity supply to the national grid. Sources said the plant remained idle for years due to delays in approving the roughly Tk45 crore needed to restore the damaged transformers. The prolonged shutdown reportedly caused an estimated Tk20,000 crore loss to the government.

The United Nations recently announced the approval of the ?rst carbon credits under a global market aimed at reducing emissions, a mechanism that has faced scrutiny over greenwashing concerns.

the UN-run market, established under the Paris climate accord, allows companies and countries to offset their excess emissions by ?nancing projects that cut greenhouse gases in other nations. Critics fear that if set up poorly, such schemes can undermine the world’s efforts to curb global warming by allowing countries or companies to greenwash – or overstate – their emissions reductions.

the ?rst credits issued under new carbon market involve a project in Myanmar that distributes ef?cient woodburning cookstoves that reduce harmful household air pollution and ease pressure on forests, UN agency said.

Electricity from B a n g l a d e s h ‘ s l o n g – a w a i t e d Rooppur Nuclear Power Plant could begin ?owing into the national grid by June or early July as the authorities prepare to start loading nuclear fuel into the plant’s ?rst unit early next month.

according to project of?cials, preparations are underway to begin fuel loading in the ?rst week of April.

testing and synchronization are then expected to continue through May and June, potentially allowing the ?rst unit to start supplying electricity to the national grid by June or July.

initially, the plant will provide electricity on a trial basis and at irregular intervals. Gradually, the facility will move towards full-scale generation. Project of?cials said that the ?rst unit is expected to be ready for fuel loading by the end of March.

a fuel-loading ceremony will be organized and is expected to involve senior of?cials from Bangladesh and Russia. Prime Minister Tarique Rahman is expected to inaugurate the process, while a Russian minister and other senior of?cials may also be present.

Delegates at the United Nations’ nuclear agency held a meeting recently for an extraordinary session on Iran in the wake of the USIsraeli strikes on the Islamic republic. Russia, a key ally of Tehran, requested the meeting at the Viennabased International Atomic Energy Agency (IAEA), following the same request by Iran.

the extraordinary meeting precedes an already scheduled regular session of the IAEA’s board of governors, which represents 35 countries. Following the strikes, the IAEA — which monitors Iran’s nuclear program — said on Saturday that it was ‘closely monitoring developments in the Middle East, and urges restraint to avoid any nuclear safety risks to people in the region’.

If Bangladesh wants industrialization and job creation, the priority must be to ensure an adequate energy supply commensurate with the demand.

at the same time, energy must be supplied at competitive prices compared to other countries.

to achieve this, there is no alternative to maximizing the use of domestic energy resources such as gas and coal.

it should also be remembered that Bangladesh has limited opportunities to achieve major success in renewable energy development.

therefore, the new government must immediately make decisions and ?nalize plans regarding the use of domestic gas and coal so that the country’s energy supply can be secured in the medium and long term.

these remarks were made by Abul Kasem Khan, Chairman of Business Initiative Leading Development (BUILD), in a conversation with Mollah Amzad Hossain, editor of Energy and Power.

the full interview is presented below: The war in the Middle East is ongoing and has created a global crisis, particularly affecting energy supply and prices. How do you see its potential impact on Bangladesh? War always creates multiple risks for the global economy, especially in terms of energy supply and prices.

the Middle East is the lifeline of the energy supply chain for Asian countries, including Bangladesh.

as far as I know, around 25-30 percent of the world’s total energy demand is supplied by Middle Eastern countries.

as a result, the US-Israel attack on Iran and Iran’s retaliatory attacks on Israel and U.S. military bases in neighboring countries have disrupted energy production and supply in the region, particularly oil and gas. Because supplies were disrupted for about seven days, global prices of oil and gas have already increased.

the impact on Bangladesh’s fragile economy will be signi?cant. We have not yet recovered from the economic impacts of the COVID-19 pandemic and the energy crisis triggered by the Russia-Ukraine war.

the ongoing con?ict will again negatively affect Bangladesh’s energy supply and prices.

if in?ation rises and the U.S. dollar strengthens further against the Bangladeshi taka, the country’s economic challenges will intensify.

in my view, even if the war ends, Bangladesh will not immediately recover from the effects of high energy prices and supply shortages.

therefore, we must begin practicing energy austerity in all sectors and reduce energy consumption.

the government has already started working on this, and the effort could be strengthened through public-private dialogue. Bangladesh currently depends on imports for about 56 percent of its energy. Meanwhile, global prices of oil and LNG are rising due to the war. Bangladesh has already purchased LNG from the spot market at more than double the usual price. What strategies should the new government adopt to deal with this pressure? There is no single solution to this problem.

importing energy requires foreign currency.

even during wartime conditions of high prices and supply constraints, an uninterrupted energy supply to industries must be ensured because maintaining exports is essential.

otherwise, foreign currency earnings will decline.

even while practicing austerity, the government must ensure the minimum energy supply required by industries. From discussions in the media, I understand that Bangladesh relies heavily on Middle Eastern countries for oil, LNG, and LPG. Considering the current con?ict, the country should focus on diversifying the sources of LNG imports.

the government has stated that there will be no shortage of fuel oil in the country, but people remain anxious.

in this context, the initiative to introduce rationing in this sector is appropriate.

at the same time, steps must be taken to ensure ef?cient energy use at all levels.

electricity consumption in the residential sector has increased signi?cantly in recent years, so ef?ciency improvements are needed there. However, the effectiveness of planned load-shedding should be carefully evaluated before implementing electricity rationing policies.

one of the most notable promises in the BNP election manifesto is the creation of 15 million new jobs within 18 months. To achieve this, restoring entrepreneurs’ con?dence in investing in the service and manufacturing sectors is essential. It also requires ensuring energy and power supply, and reducing the cost of doing business. What should be the government’s priority? The majority of these 15 million new jobs must come from the private sector. However, businesses in Bangladesh are highly regulated. Sometimes, more than30 licenses and approvals are required for a single investment.

in this digital era, why can’t we provide a single unique business number to manage all business activities? We must remember that a regulatory system designed in the 1980s cannot attract investment in today’s world. Industrial mapping should be conducted, and a single-point service should be ensured for new investments. If we want to create 15 million jobs, we need to develop at least 100,000 new and young entrepreneurs.

to attract them, new investments could be granted tax-free bene?ts for ?ve years. Now, let me return to the energy issue. Currently, the industrial sector is not receiving gas supply according to its demand.

in addition, there is signi?cant latent demand. Many applications for gas connections for industrial expansion and new investments are pending with various gas companies.

if these connections are not provided-and if gas supply does not meet demand-industrialization will not progress.

this will become the biggest obstacle to creating new jobs. To resolve this issue, the government should determine strategies through discussions with entrepreneurs. Bangladesh is presenting itself to the world as a ‘China+1’ destination to attract foreign direct investment (FDI). Many foreign investors are showing interest and visiting the country. However, when they see that there is no guarantee of energy supply for their investments, they often leave. Therefore, without ensuring energy security, it will not be possible to attract either domestic or foreign investment.

in 2024, Bangladesh spent about $20 billion on importing energy and electricity and repaying loans in this sector.

it is estimated that the spending could rise to $24 billion this year.

at the same time, dependence on energy imports continues to grow, while there is also the risk of high energy prices in the global market. What should be done to control imports? There is no short-term solution to this problem. However, we must immediately ?nalize medium- and long-term strategies to address this crisis.

effective initiatives must be taken to explore and utilize our domestic energy resources.

in terms of domestic resources, we mainly have gas and coal. For oil and gas exploration, we should adopt a wartime-level approach and ensure both domestic and international investment, increasing exploration activities 20-30 times compared to the current level. Bangladesh is one of the countries with relatively low carbon emissions globally. So why should there be obstacles to exploring and utilizing our own coal resources? By using domestic coal, we could secure enough fuel to generate electricity for around 75 years.

therefore, electricity generation should rely more on coal, while natural gas should be reserved primarily as fuel for industries.

i do not know what the BNP’s position is on coal development. However, no more time should be wasted on this issue-the new government must make a decision immediately.

in my view, the energy mix proposed in the 2010 Power System Master Plan should be followed. Sector experts believe that ensuring energy security requires immediate, wartime-level efforts to explore domestic gas and extract coal.

at the same time, urgent programs are needed to develop renewable energy. What action plans should be included in the government’s 180-day program to ensure this? In my opinion, Bangladesh has limited opportunities to achieve major success in renewable energy.

one reason is that there is little scope to install large-scale solar power without damaging fertile agricultural land. However, we should try to achieve the maximum possible success through rooftop solar systems.

to ensure energy security, the 180day program should give priority to exploring, extracting, and utilizing coal and gas.

at the same time, measures must be taken to minimize environmental damage from coal mining. People who are displaced should be properly rehabilitated with improved living conditions, just as is done in other development projects. Using environmental concerns as an excuse to leave the country’s largest energy resource-coal-unused is not acceptable.

over the past decade, electricity consumption in the industrial sector has remained limited to about 27-28 percent of total usage. Meanwhile, use of captive power generation has increased, consuming about 17 percent of the country’s total gas supply. What should the government do to ensure that industries use grid electricity instead? It is not the responsibility of entrepreneurs to produce electricity for their own needs. However, because industries cannot rely on uninterrupted, high-quality electricity from the grid, factory owners have been forced to invest in captive power plants.

if the government can ensure a reliable, high-quality electricity supply from the grid, industries will certainly prefer using grid power.

the new government should urgently take initiatives to guarantee an uninterrupted and quality electricity supply. Despite large subsidies, many institutions in the power and energy sector continue to operate at a loss. Meanwhile, outstanding in the sector is estimated at around $5 billion. What steps are needed to restore the ?nancial viability? To restore ?nancial discipline in the sector, wasteful spending must be stopped across the board, and unnecessary expenditures must be controlled.

if increased costs in the power and energy sector are due to ?awed planning, policies should be revised to correct those mistakes. However, subsidies should continue in the interest of the economy, industrialization, and the public.

at this moment, it is not possible to completely withdraw subsidies from the energy and power sector. We must remember that subsidies currently act as an incentive to maintain the country’s productivity.

to restore good governance in the power and energy sector and transform it into a people-oriented and industryfriendly sector, what should be the government’s top priority? This task is not easy, but it is achievable with planned steps. First, all irregularities and corruption in the power and energy sector must be investigated and punished.

this will create fear among of?cials and employees about engaging in similar misconduct in the future.

at the same time, monitoring must be ensured at every stage-from project approval to implementation. Additionally, the boards and management of institutions, especially state-owned companies, should be free from political considerations and staffed with competent and quali?ed professionals