Category: Energy and Power

At a joint community celebration with state and local leaders, Entergy Arkansas recently announced it will power Google’s planned $4.0b technology investment in Arkansas. Google’s investment will focus on cloud and artificial intelligence infrastructure, including the development of a new data center in West Memphis, Arkansas – the company’s first facility in the state. Google announced plans for a $25m Energy Impact Fund to scale and accelerate energy affordability initiatives in Crittenden County. Google’s $4b investment in its new facility, its $25m Energy Impact Fund and its investment in the future of our students demonstrates what lasting community impacts a project of this magnitude can have.’ Google said it will cover the full energy costs associated with powering the facility, which Entergy Arkansas argues will contribute over $1.1b in net benefits over the life of the contract and help to reduce electricity rates for Entergy Arkansas customers.

The Asian D e v e l o p m e n t Bank (ADB) is likely to come up with a hefty support of around $2.5 billion in the next calendar year (2026) against a good number of projects in its continued efforts to strengthen further its relationship with Bangladesh. ‘The ADB is likely to provide around $2.5 billion to Bangladesh for funding at least 10 development projects next year,’ said a senior official of the Ministry of Finance.

the manila-based multilateral development financier has almost finalized such financing plan in its recently held Country Programming Mission (CPM) for 2026. Besides, fund will be kept ready as ‘standby fund’ as guardrails against any emergency or priority for Bangladesh beyond the 10 projects. ‘The ADB CPM completed its mission last week.

it sat for a wrap-up meeting with the ERD.

it has assured Bangladesh of providing at least around $2.5 billion worth of funds for several development projects in 2026,’ a senior ERD official said.

Bangladesh urgently needs coal to support its newly built largescale coal-fired power generation capacity, representing an estimated investment of US$20-30 billion.

the country’s installed (and soon-to-be commissioned) coal-based generation capacity now exceeds 8,000 megawatts (MW), requiring about 20 million tonnes (Mt) of Phulbari- or Barapukuria-quality coal annually-or a larger volume of imported, lower-quality coal. Currently, Bangladesh’s coal supply is almost entirely import-dependent, as the country’s only operating coal mine, Barapukuria, can supply only its own mine-mouth power plants (525 MW). Imported coal generally has a lower calorific value-between 4,500 and 5,000 kcal/kg (GAR)-compared to the country’s high-quality domestic coal, which exceeds 6,600 kcal/kg (GAR).

this means that generating the same amount of power from imported coal requires roughly 30% more coal than using locally sourced coal.

the financial and logistical challenges of coal imports are substantial. Bangladesh spends US$4-5 billion annually on imported coal for the power sector alone-funds that could otherwise be conserved through the development of domestic coal resources.

in this context, the Phulbari coal deposit could make a transformative contribution to Bangladesh’s energy security.

its substantial open-pit mining reserves, large annual production capacity, consistent high quality, and reliability of supply throughout the operational life of large power plants make Phulbari a highly attractive and viable primary energy source for the country. Phulbari has the Largest Mineable Reserve The proposed Phulbari mine contains Bangladesh’s largest open-pit mining reserve, estimated at 475 million tonnes (Mt).

this estimate is conservative, and additional reserves could be identified as mining progresses and geological understanding improves.

the current mine plan envisions more than 83% recovery of the total estimated resource of 572 Mt (JORCcompliant)-a stark contrast to the meager 4-6% recovery achieved so far at the Barapukuria underground mine. Similarly, the proposed Dighipara mine targets production of 90 Mt from a total estimated resource of 706 Mt, translating to only 12-13% recovery.

in both cases, a significant portion of the country’s valuable coal resources remains untapped and ultimately abandoned. Phulbari Mine Ensures Large Annual Production The Phulbari coal basin is ideallysuited for efficient open-pit mining.

the proposed mine plan calls for an annual output of 15 Mt over a 30+ year mine life-enough to meet nearly 60% of Bangladesh’s current annual thermal coal demand.

this underscores Phulbari’s strategic importance in achieving the country’s energy security objectives.

the mine can support the full operational life (25-30 years) of large power plants, providing a critical incentive for investors in the power sector. First coal production from Phulbari could begin within 2-3 years of construction, compared to the 8-10 years typically required for underground mines. For reference, Barapukuria took over 12 years to reach commercial production, while Dighipara is projected to take 8-10 years to complete construction.

open-pit mining not only delivers large annual output but also ensures lower and more competitive production costs. Phulbari coal could meet Bangladesh’s domestic demand sustainably, at a competitive price, and with a reliable supply. Phulbari Offers Energy Security and Diversity Developing the Phulbari coal deposit would provide Bangladesh with an alternative, reliable, and affordable source of primary energy for power generation- enough to fuel more than 6,600 MW-as well as for industrial and domestic uses. The mine could significantly reduce the country’s growing dependence on costly coal imports by meeting nearly 60% of Bangladesh’s projected thermal coal demand.

it would also eliminate the challenges and expenses associated with long-distance coal freight and complex handling logistics. Coal production from Phulbari would save the country a substantial amount of foreign exchange.

importing an equivalent volume of Phulbari- or Barapukuria-quality coal to support 6,600 MW of generation capacity would cost approximately US$2.6 billion per year. Domestic production would not only prevent such foreign exchange outflows but also generate billions of dollars in taxes and royalties for the government. In addition, the project would create well-paid jobs, strengthen both the local and national economies, and foster skills development in Bangladesh.

these benefits currently flow to foreign coalexporting countries such as Indonesia and Australia. Phulbari Coal Quality Is Consistent and Assured The Phulbari coal deposit consists of thick seams of high-volatile bituminous coal, with an average composite thickness of 38 meters, reaching over 60 meters in parts of the basin.

extensive testing confirms the consistency of coal quality across the deposit, allowing for efficient mining and production of high-grade coal products.

the mine will ensure long-term coal quality assurance and secure supply- both essential for establishing and sustaining large-scale coal-fired power plants.

the high-quality Phulbari coal is comparable to internationally traded premium-grade thermal coal, making it a highly desirable product for prospective domestic and regional customers. Phulbari Ensures a Reliable Domestic Coal Supply Coal imports inherently carry risks of supply disruption and price volatility caused by both natural and human factors. In contrast, domestic coal production is far less vulnerable to such external shocks and is largely insulated from international energy market fluctuations. Coal from the Phulbari mine can be transported to all domestic demand centers within 2-3 days, while coal imports from the nearest export source-Indonesia-typically require at least two weeks for shipping and lighterage operations. Bangladesh’s port and coal-handling infrastructure also remain inadequate, even as several large coal-fired power plants have already begun operation.

ensuring smooth import logistics would require major investments, including extensive capital and maintenance dredging of access channels to coal ports and the construction of modern handling facilities. Phulbari Operation Enables Recovery of Valuable Industrial Co-Products The overburden materials above Bangladesh’s coal deposits contain valuable industrial minerals such as silica sand, kaolin clay, and construction sand or aggregates.

these can only be accessed through open-pit mining and have strong domestic market demand.

the Phulbari open-pit mine plan aims to recover these co-products during the coal extraction process, with an estimated mineable quantity of around 900 Mt.

importantly, these co-products would become available from the start of mining, well before the coal seams are reached, generating early cash flow to support initial mine development costs.

this early-stage production of industrial minerals could attract new co-product-based industries in and around the mining area, once the availability and reliability of raw material supply are established.

the local economy would benefit from job creation, infrastructure development, and supporting services linked to the mine’s operations. Phulbari Has Potential for Additional Coal Resources Geophysical and drilling data indicate that the Phulbari coal deposit extends southward, suggesting potential for additional coal beyond the currently identified 572 Mt resource inventory. Discovering more reserves would increase the total mineable quantity and extend the mine’s operational life. Moreover, coal deposits in the southern part of the Barapukuria basin-estimated at 54 Mt-and adjacent areas could be accessed via the Phulbari Box Cut, which would otherwise be uneconomical to develop independently.

a combined development approach offers several advantages: l Eliminates the need for separate, costly box cuts l Provides immediate access to the Barapukuria coal basin l Enables optimized backfilling and land rehabilitation of the merged open pits after coal extraction Phulbari Is Ready for Development Phulbari remains the only coal mining project in Bangladesh that has undergone a comprehensive Environmental and Social Impact Assessment (ESIA) and a Detailed Feasibility Study, both prepared to international standards and extensively reviewed by global experts. The mine development plan aims to begin delivering coal within 2-3 years of construction commencement to meet Bangladesh’s immediate energy needs. London-based GCM Resources plc, the project proponent (operating through its local subsidiary), is well positioned to finance mine development with support from its strategic partners. Historically, coal use in Bangladesh was limited mainly to brick kilns, but demand has surged to over 20 Mt per year as large coal-fired power plants come online.

in the absence of a reliable and consistent domestic supply, Bangladesh has been forced to rely on costly imports-draining valuable foreign exchange reserves. Bangladesh cannot afford to depend solely on imported coal to fuel its growing fleet of large coal fired power plants while its own highquality coal resources remain untapped. The current and projected demand scenario underscores the urgent need to develop and utilize these domestic resources efficiently.

among the country’s five known coal deposits, Phulbari stands out as the most strategically important for meeting national energy needs.

the mine offers a viable alternative to imported fuels, with the potential to save billions of dollars in foreign exchange and enable thermal coal contracts to be settled in local currency. Bangladesh requires a large, stable supply of coal to support its installed generation capacity-and Phulbari is ready to deliver, providing high-energy, competitively priced domestic coal for decades to come

Uzbekistan is set to construct the region’s first plant dedicated to producing sustainable aviation fuel (SAF), a move aimed at boosting green energy and cutting reliance on fossil fuels, reports Asia Plus.

the facility will be built in the Tuprakkala district of Khorezm region and is being developed by international firm Allied Biofuels, with an estimated investment of $5.9 billion.

the project was formalized at the International Investment Forum in Khiva, where Allied Biofuels CEO Alfred Benedict and Khorezm Regional Governor Jurabek Rahimov signed an agreement to launch the venture. Local authorities have provided land for the plant and guaranteed access to water supply systems.

once operational, the plant will be Central Asia’s first fully integrated biorefinery.

it is expected to produce 382,000 tons of SAF, 152,000 tons of electro-synthetic fuel (e-SAF), and 11,000 tons of renewable diesel annually. The facility will use green hydrogen generated through 2 GW electrolysis to power production.

The Eighteenth Governing Board meeting of the SAARC Energy Centre (SEC) was held from September 25 to 26 in Islamabad, Pakistan.

the meeting, held in hybrid mode, was attended by the governing board members, representatives of the Ministry of Foreign Affairs of the host country, Pakistan, and officials of the SAARC Secretariat, a press release received here said.

the chairpersonship of the governing board was formally transferred from the outgoing chair, Bangladesh, to Bhutan.

accordingly, Sonam Tshering, Principal Engineer, Department of Energy, Ministry of Natural Resources, Royal Government of Bhutan, assumed the role of chair and presided over the meeting.

addressing the meeting on behalf of the Secretary General of SAARC, Waseem Shahzad, Director ETS, SAARC Secretariat, emphasized the critical importance of the governing board’s continued empowerment and guidance for the centre. He underscored that the members’ collective wisdom and strategic vision are vital to steering the centre successfully toward the full realization of its mission.

Bangladesh’s immediate challenge is mobilizing finance to protect vulnerable communities through adaptation and lossand-damage measures, Environment Adviser Syeda Rizwana Hasan said recently. She highlighted the country’s key climate priorities ahead of global negotiations in a meeting with the Ambassadors of Denmark, Norway, and Sweden – Christian Brix Møller, Håkon Arald Gulbrandsen, and Nicolas Weeks – at the Bangladesh Secretariat. Rizwana called for greater adaptation support, the operationalization of the Loss and Damage Fund, and a just transition across key sectors. Referring to the water crisis in coastal areas caused by salinity intrusion, she proposed community-based rainwater harvesting as a cost-effective solution to ensure safe drinking water during the dry season. She urged development partners to support such innovative and bankable resilience projects.

the Nordic envoys lauded Bangladesh’s proactive role and pledged continued cooperation in renewable energy, wind power, green shipping, and adaptation finance.

A Bangladesh braces for intensifying climate shocks-from rising seas to erratic monsoons- one solution is quietly transforming lives across villages, towns, and cities: distributed solar generation.

in a country where energy access and climate resilience are deeply intertwined, solar panels on rooftops and microgrids in rural communities are doing more than just lighting homes-they’re helping Bangladesh adapt to a changing climate. Powering Resilience: Why Distributed Solar Is Bangladesh’s Climate Lifeline Distributed solar generation refers to small-scale solar systems installed close to where electricity is consumed. Unlike massive solar farms feeding into national grids, these systems-on homes, schools, clinics, and community centres-generate power locally. For Bangladesh, this model offers a lifeline in the event of Grid availability being impacted due to climate disruption.

the relationship between distributed solar and climate adaptation extends far beyond simple energy provision. In climate-vulnerable countries like Bangladesh, which ranks seventh globally in climate vulnerability, distributed energy systems can serve as critical adaptation infrastructure that addresses multiple dimensions of climate risk. Solar irrigation pumps exemplify this multifaceted approach. Bangladesh’s solar irrigation initiative has replaced thousands of diesel-powered pumps with solar alternatives.

these systems not only reduce greenhouse gas emissions but also provide farmers with reliable water access during increasingly unpredictable rainfall patterns caused by climate change.

take the char areas of Gaibandha or the cyclone-prone coasts of Khulna.

in these regions, solar home systems and microgrids have kept the lights on when storms knocked out grid power.

they’ve powered water pumps during droughts and kept vaccines cold in rural clinics. In short, distributed solar is not just about energy-it’s about survival. Climate Adaptation, One Panel at a Time Climate adaptation is an imperative for Bangladesh. Standard Chartered research indicates that every dollar invested in climate adaptation can generate more than 10 times the economic benefit within the decade. Bangladesh’s climate adaptation strategy hinges on resilience. Distributed solar supports this in five key ways: Energy Security Floods, cyclones, and landslides often damage transmission lines and substations, leaving communities in the dark, impacting essential services. Distributed solar systems, especially those with battery storage, provide uninterrupted power during emergencies.

they reduce dependenceon diesel generators, which are costly and polluting, and offer a cleaner, more reliable alternative. Livelihoods and Economic Empowerment Solar energy is powering a new wave of rural entrepreneurship. Farmers use solar-powered irrigation systems to grow crops even during dry spells. Fishermen use solar refrigeration to preserve their catch. Small businesses-from tailoring shops to mobile charging stations- operate efficiently with solar kits.

these innovations not only boost incomes but also make livelihoods more climateresilient. Health and Education In remote areas, solar energy keeps health clinics operational during blackouts.

it powers vaccine refrigerators, diagnostic equipment, and lighting for nighttime emergencies. Schools benefit too- students can study under clean, reliable light, and digital learning tools become accessible. For women and children, who often bear the brunt of energy poverty, this is transformative.

urban Cooling and Water Access In cities like Dhaka and Chattogram, rooftop solar reduces the urban heat island effect.

it powers decentralized cooling systems and water pumps, helping residents cope with rising temperatures. As climate change intensifies heatwaves and water stress, these systems become essential for urban adaptation.

emissions Reduction Every solar panel installed displaces fossil fuel use. Bangladesh’s reliance on imported oil and gas not only strains its economy but also contributes to greenhouse gas emissions. Distributed solar helps the country meet its climate targets under the Paris Agreement and supports its Nationally Determined Contributions (NDCs). Distributed Solar Poised for a Revolution in Bangladesh Bangladesh’s solar power on grid and offgrid solar power generation capacity is currently 1,339 MW peak, which is evenly distributed between large-scale utilityscale solar parks (53%) and distributed solar (47%), such as rooftop solar, solar irrigation, home systems, irrigation, micro grids, etc .

the government’s Renewable Energy Policy aims to achieve 20% power generation from renewable sources by 2030, taking it up to 30% by 2041. The policy also states the objective of P2P trade in renewable energy, whereby electricity consumers with solar systems can trade surpluses to other consumers using distribution and transmission networks.

if this modality can be further enhanced through existing technology to curve out part of the distribution and transmission network in a microgrid, then it will further enhance the resilience of power generation, ensuring that the renewable energy assets can continue to deliver power even during grid disruption.

the National Rooftop Solar Program of 2025 targets 3000 MW of electricity from solar rooftops to be set on the government buildings, schools, and hospitals.

this not only increases the renewable power generation, but it can also potentially enhance the resilience of essential public services with appropriate technology and considerations in the programme structure. Bangladesh is already recognised as perhaps the world’s most successful example of large-scale community-based distributed solar deployment.

the country has implemented what the World Bank describes as ‘the world’s largest off-grid solar power program,’ reaching over 20 million people through its Solar Home Systems (SHS) initiative with more than 6 million systems installed. Bangladesh has also established the net metering guidelines in 2018. While the framework of net metering and the incentives provided to household and institutional investors have yet to be materialized in a significant rise in the number of rooftop solar systems, we observe the significant success of rooftop solar through a set of policy actions in other markets, such as Pakistan. Factors that supported this accelerated growth in rooftop solar in Pakistan are as follows. Progressive net metering policy and regulations l Net metering guideline in Pakistan was first issued in 2015, initially allowing all categories of consumers with 3-phase connection to offset electricity bills through exporting surplus solar power. Later, single-phase connection consumers were also brought under the scope. l The buyback rate initially offered was very attractive, up to Rs. 27/kWh, with generous system sizing (initially allowed up to 1.5 times of sanctioned load).

the licensing process was streamlined and efficient, and later digitized for efficiency. l These incentives generated short payback periods (2-4 years for typical systems), leading to exponential market growth: from just a few thousand licensed connections in 2018 to nearly 300,000 by March 2025. l These incentives generated short payback periods (2-4 years for typical systems), leading to exponential market growth: from just a few thousand licensed connections in 2018 to nearly 300,000 by March 2025. Government Subsidies, Tax Incentives, and Local Policy Reforms l Several provinces (e.g., Punjab, Sindh) rolled out targeted subsidies or paydown support, especially for lowincome, rural, and agricultural users. For much of the past five years, imports of solar panels and inverters enjoyed near-zero customs duties and sales tax, keeping solar capex low and boosting market penetration. l Solar users benefit from significant tax reliefs: reduction in advance tax on bills, accelerated depreciation on solar assets for businesses, etc. l The national Fast Track Solar PV Initiative encourages solarization of public buildings, with competitive tenders and streamlined grid interconnection support to incentivise solar investments, both in OPEX and CAPEX models. Climate Finance, Donor Support, and Blended Finance l Concessional loans are offered for solar system investments from the State Bank of Pakistan l Through partial guarantees (e.g., Green Climate Fund, GuarantCo/PIDG), donor support through concessional loans (e.g., ADB), combined with technical assistance for market development, has been a key enabler. Some of these measures have already been implemented in Bangladesh, for example, adjustment in duty structure for panel and inverters, concessional capital from Bangladesh Bank, allowing singlephase connections within the scope of net metering, allowing power export up to 100% of sanctioned load, etc.

to note that the Bangladesh Bank’s refinance schemes are in favour of institutional investors, and may be linked with a programmatic approach that allows concessional capital to be channelled to individual households, small enterprises, farmers, etc.

it also needs to be recognised that, in addition to hard currency funding, guarantees can also enable local financial institutions to deploy additional longerterm capital for renewable investments that can address both risk mitigation and adaptation. Bangladesh Bank may consider these economic and climate benefits during regulatory approval screening. Financing the Future: Climate Finance for Distributed Solar Climate finance is essential to scale distributed solar solutions.

it includes public and private funding aimed at supporting climate mitigation and adaptation. Bangladesh has made significant strides, but more needs to be done to unlock the full potential of solar energy. Financing distributed solar requires a programmatic approach, as opposed to project finance structures for financing large-scale renewable energy projects such as utility-scale solar parks, wind farms, etc.

there are examples of financing programmes enabled through grants, concessionary capital, and distribution through microfinance institutions for solar house systems in semi-urban and rural regions.

this essentially was a privatepublic partnership model enabled through concessionary capital from donors mobilised by IDCOL. However, no such program is in place yet for rooftop solar. As the government is taking a structured approach to rooftop solar, as outlined in its national rooftop solar programme, it may be useful to structure a bankable model through public-private consultation.

this is particularly important for developing renewable assets through an Energy Services Company (ESCO) under the OPEX model.

the financing structure needs to mitigate the risks inherent in the tripartite arrangement between the ESCO, the power purchaser, and the utility company, to ensure that risk allocations are clear and appropriate.

the Operations and Maintenance (OandM) arrangement is also critical to mitigate the disruption of cash flow over the term of the project. Distributed solar financing programmes, with power storage or distribution through a microgrid, accruing both adaptation and risk mitigation benefits, can be structured through blended finance programmes. The climate and social benefits of such programmes (e.g., strengthening livelihoods) can enable concessionary capital from donors.

this may also include subordinated concessional debt, which can then be leveraged to crowd in commercial senior loans at competitive rates.

alternatively, umbrella guarantees for loans under the project can similarly be leveraged to arrange financing at competitive rates. Guaranteed green bonds can enable raising long-term capital from new investor classes, thereby reducing the dependence on financial institutions for capital.

the mitigation benefits of the projects can be monetised through carbon trading in voluntary markets, or through arrangements with donors (e.g., World Bank Result-Based Climate Finance). The proceeds from the carbon credit monetisation can be channelled back to beneficiaries (e.g., by providing subsidies on the solar systems). A More Sustainable Tomorrow While Bangladesh’s recent policy reforms mark significant progress, the sector’s expansion requires more consideration on how to incentivise the end users and project developers, enabling confidence in policy continuity.

a stable, well-coordinated, and investorfriendly policy environment-drawing from regional successes and tailored to Bangladesh’s context-is urgently required. Only by balancing ambitious targets with practical, durable policy actions can Bangladesh translate its distributed solar potential, including rooftop solar, into a climate-resilient, economically competitive, and inclusive energy future. Jalaluddin Baybers Head, Priority Sector Lending, CIB Coverage at Standard Chartered Bangladesh References l The Adaptation Economy, Standard Chartered Bank l Adaptation economy | Standard Chartered l The potential of distributed solar to enhance the resilience of power generation is adequately covered in the following publications l How off-grid solar solutions are key to climate adaptation and resilience l Three ways that clean energy innovation and climate change adaptation can work in lockstep – Global Center on Adaptation l Distributed solar combined with power storage is also covered in Standard Chartered Bank’s adaptation finance framework as a potential adaptation activity. l Buyback rate l Govt limits net metering contract to five years, revises buyback rate: report – Profit by Pakistan Today l Net metering payback period, sanctioned load l Net metering reforms and grid challenges amid Pakistan’s solar rise | IEEFA l Fiscal Support l Solar Panel Duty Exemption Policy in Pakistan Explained l Pakistan’s Solar Revolution: How Industries Are Harnessing the Power of the Sun – ESA Energy SMC Private Limited l To-Tax-or-Not-to-Tax-PakistansSolar-Energy-Debate-28-4-2024Final-.pdf

Liquefied Petroleum Gas (LPG) has emerged as a vital energy source for Bangladesh’s domestic, industrial, and transport sectors. The LPG market in Bangladesh has experienced remarkable expansion over the past decade. As the nation transitions from a reliance on natural gas to a diversified energy mix, LPG offers a clean, efficient, and portable alternative. However, the very properties that make LPG convenient-its flammability, explosive nature, overpressure hazard, and wide use-also make it a significant safety concern. Fires and explosions have become increasingly frequent in Bangladesh in recent years. The LPG business, therefore, is fundamentally about maintaining safety throughout its lifecycle- from production, storage, and transportation to consumer use.

the Dual Nature of LPG: Energy and Hazard LPG is a clean-burning fuel with a high heating value and lower carbon emissions compared to other hydrocarbons.

it remains in liquid form under moderate pressure (6-7 bar), which makes it highly portable and convenient for handling and storage. However, LPG also poses significant hazards. When released to the atmosphere, it vaporizes readily and can form explosive mixtures with air at very low concentrations (Lower Explosive Limit ˜ 2%). Its minimum ignition energy is extremely low (˜ 0.25 mJ), making accidental ignition easy.

to illustrate its energy potential, a typical 12 kg household LPG cylinder contains energy roughly equivalent to 128 kg of TNT, highlighting the catastrophic consequences of uncontrolled release, flash fire, or explosion. This dual nature-efficient fuel versus serious hazard underscores the critical need for proper storage, handling, and safety precautions.

unsafe Transportation and Storage: The Current Scenario in Bangladesh Recent incidents across Bangladesh highlight the vulnerability of the LPG supplychain.

explosions during refilling, cylinder leaks in households, and truckloaded LPG cylinder accidents on highways underscore weaknesses in safety practices.

unsafe transportation- such as overfilled or poorly maintained tankers, lack of vehicle inspection, and untrained drivers-has led to several road accidents, fires, and explosions. Similarly, unsafe storage practices, including the use of expired or substandard cylinders and inadequate fire protection systems at depots, pose grave risks to workers and surrounding communities. On March 13, 2024, a vapor cloud explosion occurred from a leaking gas cylinder in the Telirchala area of Kaliakair Upazila in Gazipur, leaving at least 35 people injured and, in the following days, claiming 16 lives as many of the burn victims succumbed to their injuries at the National Institute of Burn and Plastic Surgery.

the incident began when a cooking gas cylinder leaked inside a home; the resident then threw it outside near the road.

the gas leaked in a narrow, congested, busy road and formed a vapor cloud, which ignited and caused a sudden, large explosion. On 19 July 2025, a disastrous explosion rocked the ‘CO Bazar LPG Auto Gas and Conversion Centre’ in Rangpur city’s CO Bazar area, killing one person and injuring approximately 20 others.

the deceased was an engineer working on repairs to a leaking LPG tanker.

the explosion caused widespread physical damage: at least 20-30 vehicles-including ambulances, private cars, and motorcycles-parked in and around the station were severely damaged or destroyed; doors, windows, and structural elements of nearby residential and commercial buildings cracked or were torn off.

the shock of the blast was heard and felt from well over a kilometer away. Beyond casualties and damage, the explosion sparked public concern over safety standards in LPG stations- particularly regarding prompt response to leaks, transparency in maintenance operations, and regulatory compliance. The blast served as a grim reminder of how deferred maintenance, unaddressed leaks, and insufficient safety oversight in storage and transportation systems can lead to major disasters.

in many cases, the root cause lies in an inadequate safety management system, poor enforcement of standards, and a lack of safety culture among operators and consumers. Hazard Management Across the LPG Life Cycle: Every stage of the LPG life cycle presents distinct hazards: n Storage: Risk of leaks, vapor cloud explosions, or BLEVEs. n Handling and Refilling: Faulty valves, improper hose connections, static discharge. n Transportation: Mechanical failure, tanker rupture, collisions, leaks, or exposure to fire. n Consumer Use: Leaks from regulators or hoses, confined space accumulation, or open flame ignition.

addressing these requires both occupational safety (worker protection) and process safety (system integrity). Managing Risk and Safety through Process Safety Management (PSM) The implementation of OSHA Process Safety Management (PSM) standards is critically important for the LPG industry to prevent large-scale disasters and ensure sustainable operations. LPG, being highly flammable and stored under pressure, poses inherent risks of fire, explosion, and toxic release if not properly managed. PSM provides a systematic framework to identify, evaluate, and control process hazards throughout the entire life cycle- from storage and transfer to distribution and consumer use. By integrating key elements such as process hazard analysis (PHA), management of change (MOC), mechanical integrity, safe work practices, employee training, incident investigation, safety audits (internal and external), and emergency response planning, LPG industries can significantly reduce the likelihood of catastrophic incidents. Globally, most major industrial accidents-from Bhopal to Texas City- have been traced back to the absence or failure of effective process safety management. For Bangladesh’s rapidly growing LPG sector, adopting a robust PSM program is therefore not optional but imperative.

it builds a culture of safety, ensures regulatory compliance, protects human lives and property, and enhances public trust in the industry’s commitment to responsible and safe energy delivery. Regulatory Framework and Enforcement Challenges Bangladesh has several laws and codes relevant to the LPG business, including the Explosives Act (1884), Petroleum Act (2016), Bangladesh Gas Act (2010), Explosive Rules (2004), LPG Rules (2004), and the Occupational Health and Safety Policy (2013). However, despite the existence of these legal frameworks, enforcement remains one of the most critical challenges in ensuring safety and compliance across the rapidly expanding LPG industry.

to strengthen and ensure good governance, authorities should: n Update and harmonize safety codes and standards with international standards. n Introduce Process Safety Management (PSM) standards to manage risk in highrisk industries/installations, including LPG industries. n Employ qualified inspectors and leverage third-party safety audits. n Introduce structured training programs and certification mechanisms for enforcement officials to enhance their technical competence in LPG safety and risk assessment. n Introduce compulsory training, certification, and periodic renewal for all personnel involved in LPG operations-plant operators, transport drivers, cylinder handlers, and technicians-to ensure they understand and adhere to safety standards.

the Role of Industry and Stakeholders The safety of the LPG industry depends on shared responsibility: n Industry Operators: Must allocate resources and establish internal safety management systems. n Regulators: Should provide clear, enforceable standards and conduct regular inspections. n Consumers: Need awareness on safe cylinder use, leak detection, and emergency actions. n Community and Media: Play a vital role in awareness and accountability.

a cooperative and solution-oriented relationship between industry and regulators is essential to foster a culture of prevention rather than reaction. However, in practice, safety compliance remains inadequate, monitoring mechanisms are weak, and enforcement is often ineffective. Regulatory bodies such as the Department of Explosives face significant limitations in manpower and technical capacity, making it difficult to inspect the vast number of LPG cylinders, storage facilities, and transport operations across the country.

this gap between regulation and implementation continues to pose serious risks to public safety and undermines confidence in the overall governance of the LPG sector. Safety Culture: A Moral and Economic Imperative As Dr.

trevor Kletz, the father of inherent safety, wisely noted: ‘If you think safety is expensive, try an accident.’ This statement captures the essence of why safety is not a cost but an investment-an investment in human lives, increasing productivity, organizational sustainability, and national resilience.

every Taka spent on prevention, whether on employee training, safety audits, quality equipment, or emergency preparedness, yields exponential returns by proactively avoiding near misses and mitigating the risk of catastrophic losses.

the economic rationale for safety is compelling.

industrial accidents result in massive direct and indirect costs: loss of life, property damage, legal liabilities, compensation claims, production downtime, and reputational damage that can cripple even the largest corporations. Conversely, organizations that invest in proactive safety management systems enjoy higher operational reliability, improved workforce morale, and greater public trust. Safety thus becomes a competitive advantage in the marketplace.

in the LPG sector-where small lapses can lead to explosions, fires, and societal panic-ethical responsibility must align with financial prudence.

a safe enterprise not only safeguards its employees but also protects the surrounding community and builds confidence in modern energy systems.

in short, safety is not a cost center-it is a value creator.

every organization in the LPG supply chain must recognize that maintaining safety is both a moral obligation and an economic necessity for long-term success.

in Bangladesh’s growing LPG market, safety must remain at the core of business operations. From storage terminals to kitchens, every stakeholder has a role in preventing accidents.

an effective safety management system not only protects lives and property but also ensures the sustainability of the LPG industry itself.

the future of the LPG business in Bangladesh will be determined not by how much LPG we can distribute, but by how safely we can manage it.

A man and his son, who were badly burnt in a recent fire triggered by a puncture of Chevron B a n g l a d e s h ‘ s condensate pipeline in Moulvibazar’s S r e e m a n g a l upazila, have died while undergoing treatment in Dhaka.

the mother, also critically injured in the same incident, remains in the intensive care unit. Bashir Mia, 54, died today around 6:30am at the National Institute of Burn and Plastic Surgery in Dhaka. His son, Rejoan Mia, 21, succumbed to his injuries while on life support at the same facility.

the family, hailing from Ilampara area of Bhunabir union under Sreemangal upazila, was caught in the blaze that broke out on September 23.

the fire erupted after miscreants allegedly drilled a hole into a condensate pipeline operated by Chevron Bangladesh, resulting in a massive explosion and fire. Bashir’s wife Farzana Akhter Parveen, 36, remains in critical condition in the ICU said Salek Mia, a local union parishad member. Chevron Bangladesh expressed condolences at the deaths.

Adviser on Environment, Forests and Climate Change Syeda Rizwana Hassan has said the journey to phase out single-use plastics (SUP) from government offices has officially begun with the Bangladesh Secretariat. ‘With regular monitoring, the Secretariat would be completely free of single-use plastics by January 1, 2026. The use of plastic water bottles and other single-use items will be phased out by December next,’ she told a press briefing in the Secretariat recently. Rizwana Hasan noted that use of single-use plastics has not been banned yet in Bangladesh. However, the government is actively discouraging their use. Several embassies and universities have already declared their campuses free of single-use plastics, she added.

earlier, Secretary of the Ministry of Environment, Forest and Climate Change Dr. Farhina Ahmed monitored enforcement of the government decision to bar all from using the SUP at Gate 2 and Gate 5 of Bangladesh Secretariat.