State Minister for Power, Energy and Mineral Resources Nasrul Hamid has said that all the liquid fuel-based power plants will be phased out within next two years. “We think, we can come out of all liquid fuel-fired power plants in next two years”, he told a seminar titled: “Energy Transition: Global Context" at Biduyt Bhaban in the city on Saturday. Such remarks from the state minister came against the backdrop of the nagging power and energy crisis in which operation of diesel-run plants already been suspended due to excessive price hike of the primary fuel. The function, organised by Forum for Energy Reporters Bangladesh (FERB), was also addressed by eminent energy experts Dr M Tamim and Dr Badrul Imam, senior energy secretary Mahbub Hossain, power secretary Habibur Rahman, Bangladesh Power Development Board (BPDB) chairman Mahbubur Rahman and Power Cell director general Mohammad Hossain. FERB chairman Shamim Jahangir presided over the function while its executive director Rishan Nasrullah conducted the event. Read more: Uninterrupted power supply to be ensured through improvement in distribution: Nasrul Nasrul said initially 1000 MW diesel-fired power plants will be phased out in one year. He said three issues are being considered in dealing with energy transition in global context. These are technological advancement, providing energy at affordable price and at the fastest possible time. He mentioned that the government wants the private sector’s more involvement in energy business. That’s why import of all kind of energy products have now been open for private sector. “Private sector can import all kinds of liquid fuel as well as LNG alongside the LPG. They can set up their own establishment and supply to dealers for selling in petrol pumps”, Nasrul Hamid said. He also emphases on more use of electric vehicles (EV) replacing the existing diesel-run buses and other transports. “The public sector bus and train should come up first to use the EV as its energy efficiency is 80 percent while diesel-run vehicles efficient is only 20 percent”, he said. Making his presentation on “Energy Transition: Global Context" Dr Tamim said Bangladesh should not haste in decision making based on current crisis. Read more: Govt vigorously promoting renewable energy in power generation mix: Power Secretary He also said demand forecast based on sector wise bottom up growth projection on a 5-10 year time frame should be undertaken. He suggested for engaging a team of world class energy trading professionals to deal with future energy purchases and contracts mitigating risks. “The team should do a comprehensive world resource inflow and outflow analysis”, he added. Referring to IRENA’s recommendations, Dr Tamim said Bangladesh’s best path to reduce CO2 emission is efficiency improvement, putting emphasis on bioenergy with carbon capture and storage (BECCS) and renewables. He said that along with local supply (both gas and coal), we must secure steady and sustainable sourcing of primary energy by import – coal, gas, cross border electricity, nuclear fuel. “Every aspect of renewable energy and efficiency improvement should be vigorously encouraged, funded and supported by policy,” he said adding that solar rooftop, irrigation, parks in unused government acquired lands can easily achieve at least 5000 MW by 2030. “A separate study on energy and efficiency technology adaptation should be undertaken.and Immediate investment in grid upgradation and making highly trained independent System Operator is required”, he noted. Prof Badrul Imam said different studies, conducted by international firms, still show a huge prospects of local gas explorations. The government should utilise such prospective scopes to over cone the energy crisis. Energy secretary Mahbub Hossain said the government has taken steps to conduct 2D and 3D exploration across the country to acquire adequate data before inviting foreign companies to invest in gas exploration. He said under the ongoing programmes, there will be about 600 MMCFD added to the national grid by 2026. Power secretary Habibur Rahman said the government is trying to replace some 2000 diesel-run irrigation pumps with solar system. “But we have to face a huge challenge in this regard”, he added.

Despite suspension of liquified natural gas (LNG) import from international spot market, the government has decided to increase the number of listed LNG suppliers. Cabinet Committee on Economic Affairs (CCEA) in a virtual meeting, with Finance Minister AHM Mustafa Kamal in the chair,   approved a proposal of the Energy and Mineral Resources Division in this regard on Thursday. Read more: Saudi Arabia assures assistance in commercial supply of LNG to Bangladesh The new eight companies which were added to the existing list of 16 companies are  LNG Japan Corporation, Japan;  Socar Trading UK Ltd.; POSCO International Corporation, Korea;  Qatar Energy Trading LLC;  Inpex Corporation, Japan;  Pavilion Energy Trading & Supply Pte Ltd. Singapore; . PetroChina International Pte Ltd. Singapore; and  PTT International Trading Pte Ltd, Singapore. However, it is not clear whether the government  will  withdraw suspension on import immediately or not. The government earlier suspended the import of LNG from international spot market in July following the excessive hike in prices against the backdrop of the Russia-Ukraine war. Before the war, Bangladesh was purchasing LNG from the spot market between $6-10 per MMBtu. After start of the war in February this year, the price crossed $37 per MMBtu. Read more: No additional LNG supply from Qatar before 2025: Petrobangla Now again the price took a declining trend in recent month. Last month, the price came down below $24 per MMBtu. Beside the import of LNG from spot market, Bangladesh has long term contract with Qatar and Kuwait to import the gas relatively at much lower price which varies between $11-17 per MMBtu in recent years depending on the price of liquid fuel on the international market.

Prime Minister’s Energy Advisor Dr Tawfiq-e-Elahi Chowdhury has said that dependence on imported liquefied natural gas (LNG) will continue as there is no immediate possibility of gas exploration from the country's offshore areas. “The government has taken the initiative to set up more floating storage and re-gasification units (FSRUs) across the country,” he told a webinar, organized by Bangladesh Energy Society (BES), today in the city. FSRUs are LNG terminals used to import gas in liquefied form. It is then re-gasified there before releasing it to the local supply network.   Also read: Bangladesh seeks additional supply of LNG to meet growing demand The energy advisor said more sites are being selected in Payra of Patuakhali and Bhola to set up land-based LNG terminals in addition to the existing two FSRUs in Maheshkhali island of Cox’s Bazar.    He noted that Prime Minister Sheikh Hasina has already instructed to sign long-term deals to import more LNG. Currently, Bangladesh has long-term contracts with Qatar and Oman to import LNG while it also imports liquefied gas from international spot markets on a short-term basis.   Also read: Petrobangla to get Tk 2000 crore from GDF to import LNG BES president and former principal secretary Abul Kalam Azad made a presentation at the virtual seminar titled: “Present Energy Crisis – Way Forward for Bangladesh” while eminent energy expert Professor Mohammad Tamim, president of Bangladesh Solar and Renewable Energy Association (BSREA) Dipal Barua, chairman of Energy Standing Committee of FBCCI Humayun Rashid, president of Bangladesh Independent Power Producers’ Association (BIPPA) Imran Karim, director of Summit Group Mohammed Faisal Karim Khan addressed on the occasion. Former chairman of Bangladesh Power Development Board (BPDB) and BES vice president ASM Alamgir Kabir presided over the event. Professor M Tamim said it would not be wise to take a concrete decision depending on the current energy crisis as it may not continue for a long time.   Read Bangladesh purchases LNG, fertiliser at lower rates as prices fall in global market “Rather, there should be short, medium and long term measures to ensure energy security of the country,” he noted. Dipal Barua said that renewable energy could play a vital role in the current energy crisis. He mentioned that he came to his village home in Raojan where there was no electricity from 8 am to 12:30 pm.   Humayun Rashid, FBCCI leader and CEO of Energypac Power Generation Ltd, which has set up a number of private power plants, said no other ministry should talk about the current power and energy crisis as it creates unrest among people. Read Bangladesh wants to procure LNG from Qatar for a longer period: PM “We’re passing our best ever time in electricity generation,” he claimed.    BIPPA president Imran Karim said the role of the private sector in power generation is increasing and it is contributing 33 percent of electricity to the country.

The escalating price of liquefied natural gas (LNG) has put the Energy and Mineral Resources Division into a “trouble” over its demand and supply management following the diesel and kerosene price hike. According to official sources, top policymakers are now weighing different options, including further upward adjustment in gas price, enhancing LNG import from long-term contracts and increasing local gas production. Also Read: Bangladesh faces biggest challenge in managing affordable fuel: Experts "But There’s no easier option for the government to find a suitable solution to manage the situation, particularly in 2022,” said a top official at the Energy and Mineral Resources Division, wishing not to be named. Eminent energy expert Dr M Tamim, a professor at Petroleum and Mineral Resources Engineering Department of Bangladesh University Engineering and Technology (Buet), said there is little option for the government to pursue without an upward readjustment in the gas price as there is an indication that the higher energy price will continue in the coming days until the end of 2022. “There should have been a thorough analysis of energy prices. Also, steps like increasing the LNG import from long-term contracts should have been taken much earlier. But the policymakers missed those opportunities when the LNG price was much lower on the international market,” he told UNB. Official sources said the government is planning to send a team, headed by senior secretary of the Energy and Mineral Resources Division, to Qarar and Oman to manage the increasing import of LNG from long-term contracts. The government has long-term contracts with the two nations to annually import 2.5 million metric tons of LNG from Qatar and 1.5 million MT from Oman. It also imports another 1.5 million MT from the international spot market to meet the growing demand for natural gas. Also Read: Private operators’ LPG: Price goes up again Currently, the sources said, the import of LNG from long-term contracts is preferable for the government as its cost is about $10 per million MMBtu, which is almost static, while the import from spot market cost $36.60 MMBtu which is dynamic or fluctuating. They said the government wants to increase the LNG import by 2.2 million MT annually from a long-term contract to raise the total import to 7.2 million MT from the current 5 million MT. “It’ll result in a daily increase of imported LNG to 1,000 MMCFD in place of the current 640.7 MMCFD,” said a source as the country’s re-gasification capacity is 1,000 MMCFD. Bangladesh’s current demand for natural gas is 4,000 million cubic feet per day (MMCFD) while it could supply a maximum 3041.1 MMCFD. Of this, local production is 2400.4 MMCFD and imported gas (LNG) is 640.7 MMCFD. On the other hand, the sources said, the government is trying to increase the local production by 100 MMCFD from three gas fields—Koilashtila, Bianibazar and Haripur -- by conducting exploration and work-over wells, said Petrobangla director (planning) Ali Iqbal Md Nurullah. “We’re making our best efforts to enhance local gas production by at least 100 MMCFD,” he told UNB. Dr. M Tamim is, however, not that much hopeful of Petrobangla's immediate success in boosting local gas production. “This is a very time-consuming step which is unlikely to make any headway.” Meanwhile, the Energy and Mineral Resources Division has asked its officials to calculate the financial loss and its possible impact from the LNG import at a much higher price. Also Read: Hamid says fuel prices to fall in line with global market The government had to import LNG at $36 per million MMBtu last month which was below $10 per MMBtu early this year. Official sources said the Energy and Mineral Resources Division has also asked Perobangla and its subordinate gas distribution companies to prepare a proposal on readjustment of gas price. They said the proposal will be discussed with top policymakers and then, if any green signal is found from top level, it will be sent to the Bangladesh Energy Regulatory Commission (BERC) for public hearing. About this move, Dr Tamim said, now the government has actually no more option but to readjust the gas price as it already raised the prices of diesel and kerosene. It was not a pragmatic decision to hike diesel and kerosene prices as it will have multiple effects on many sectors, including transport, power and agriculture, as they are dependent on such primary fuel. “It’s not a good step at this point of time when the economy has just started making a recovery,” he said. The price of natural gas was last increased on June 30, 2019 when the monthly price of gas for household users was raised Tk 975 from Tk 800 for double burner users and Tk 925 from 750 for single burner users. The price of gas for pre-paid household consumers was increased to Tk 12-60 per cubic meter while the price of CNG was fixed at Tk 43 per cubic metre. The gas price for power plants and fertilizer factories was fixed at Tk 4.45 per unit while the rate was fixed at Tk 23 per cubic meter in the commercial consumers, Tk 13.85 per cubic meter for captive power plants, Tk 10.70 per cubic meter in industries and tea gardens and Tk 17.04 per cubic metre in small and cottage industries.

International suppliers are offering long-term deals with Bangladesh to meet its soaring demand for liquefied natural gas (LNG), while energy experts and consumer right groups want the government to go through a competitive bidding process to ensure transparency. Currently, the government is importing around five to six LNG cargoes, having the quantity of around 138,000 cubic metres every month.  But the forecast is that the import will go up gradually as the country’s focus is now being shifted to LNG from coal as primary fuel for power generation. Also read: Cabinet committee approves 4 proposals, including LNG import According to sources, Bangladesh now imports LNG from two companies—Qatar-based QatarGas and Oman-based Oman Trading International—on long term basis while short-term supply is coming from international spot market where 17 more companies are enlisted. Four more companies have been given green signal to be enlisted with the state-owned Petrbangla to supply LNG from the spot market. Official sources said the long-term import is based on unsolicited deal while the short-term imports are taking place through a bidding process.     Read LPG Growth in Bangladesh: Effective Alternative to Natural Gas

Cabinet Committee on Public Purchase on Wednesday approved eight procurement proposals including the import of LNG.  Finance Minister AHM Mustafa Kamal presided over the meeting. As per a proposal, placed by Energy and Mineral Resources Division, state-owned Petrobangla will import 3.360 million MMBtu of LNG from Vitol Asia Pte Ltd, Singapore, at a cost of Tk 267.57 crore. Each unit will cost $8.01. Also read: Cabinet purchase body approves LNG, rice import Three proposals of the Roads Transport and Highways Division received the nod of the Cabinet body. As per the proposals, Roads and Highways Department will award a Tk 188.35 crore contract to Spectra Engineers Ltd, under package No-PW-02 of its Project “Installing Excel Load Control Centre at the Transport Sourcing Points in the Important Highways”. The Roads and Highways Department will extend the cost of 25km road improvement from Cox’s Bazar to Ukhia by Tk 13.43 crore under the package No-WP-01 of Cox’s Bazar-Tekhnaf Road Development project and also Tk 16 crore for 25km road improvement from Ukhia to Unchiprang road of the same project under the package No-WP-02.   Also read: Will seek details of Vitol Asia on LNG supply: Finance Minister The committee approved two proposals of the Railway Ministry. As per approval, Bangladesh Railway (BR) will award a contract of Tk 433.78 crore to Joint Venture of (1) CREC and (2) CCCL, Dhaka, to implement the project: Construction of Broadguage Rail Truck from Madhukhali to Madura via Kamarkhali under its package No-WD-1. The BR will award Tk 448.98 crore contract to Joint Venture of (1) CRCC and (2) MAHL, Dhaka, to implement the work under the package No-WD-02 of the same project. Also read: Cabinet body okays LNG import from int’l spot market The Cabinet body approved a proposal of the Health Services Division to procure Tk 80,734 cartons of 27 kinds of drugs from the state-owned Essential Drugs Company Limited, for community-based healthcare (CBHC) authority through direct procurement method.

The Cabinet Committee on Public Purchase approved seven proposals including the import of liquified natural gas (LNG) from a Swiss company and rice from an Indian company. Finance Minister AHM Mustafa Kamal presided over the meeting. State-owned Petrobangla, under the Energy and Mineral Resources Division, will import the 3.360 million MMBtus of LNG from AOT Trading AG, Switzerland at a cost of Tk 243.3 crore with per MMBtu price at $7.2855. Also read: Purchase body okays 6 proposals including import of LNG, rice The Directorate General of Food under the Food Ministry will import 50,000 metric tonnes of non-bashmoti parboiled rice from PK Agri Link Private Ltd, India, at cost of Tk 174.65 crore, with per MT price at $411.93. Meanwhile, the Cabinet committee approved a proposal of the Roads and Highways Department to award Tk 103.37 crore contract to the Joint Venture of Reliable Builders Ltd, Md Moyenuddin (Bashi) Limited and Orient Trading & Builders Ltd, for implementing package No-WP-02 of the project on Improvement of Shariatpur (Monohar Bazar)-Ibrahimpur Road upto Ferry Ghat. The committee approved awarding Tk 106.84 crore contract to the Joint Venture of Md Badrul Iqbal Ltd, Hassan Techno Builders Ltd, and Oyster Construction and Shipping Company Ltd, for implementing the works of the package WP-03 of the same project.  Also read: Govt to import 3.5 lakh MT more rice Another project of the Roads and Highways Department received approval of the committee to award a contract of Tk 788.38 crore to Afcons Infrastructure Limited, India, for implementing the package No-WP-03 for upgrading Ashuganj Riverport-Sarai’s-Dharkhar-Akhawra Highway into four lanes and its maintenance work.  The committee approved a proposal of Tk 243.18 crore of the Bridge Authority under the Bridges Division to award a contract for appointing consultant for conducting feasibility study about construction of bridges on Shariatpur-Chandpur Highway and Gazaria Munshiganj Road for crossing the Meghna River to connect Chandpur and Shariatpur districts. Also read: Cabinet purchase body nods import of rice, fertiliser, petroleum A Joint Venture of Tecnica Y Proyectos SA (TYPSA), Spain, Nippon Koei Co Ltd, Japan, DOHWA Engineering Co Ltd, South Korea, Development Design Consultants Ltd Bangladesh, BCL Associates Ltd, Bangladesh and Dev Consultants Ltd, Bangladesh, won the contract.  The committee approved a proposal of Public Works Department for re-evaluation of the tender proposal for the work package of WD-01 of the Khulna Development Authority’s Khulna Shipyard Road Widening and Development Works by cancelling the recommendation of Tender Evaluation Committee (TEC).  

The Cabinet Committee on Public Purchase on Wednesday approved 6 procurement proposals including import of 3.36 million MMBtus (million British thermal units) of liquefied compressed gas (LNG) from US-based Excelarate Energy LP. Finance Minister AHM Mustafa Kamal presided over the Cabinet body meeting. As per the proposal placed by Energy and Mineral Resources Division, state-owned Petrobangla will import the bulk LNG from the US company at Tk 218.07 crore. Each MMBtu of LNG will cost $6.53 in the import. The committee approved a proposal of the Food Ministry to import 50,000 metric tons of non-Bashmoti parboiled rice from P.K Agri Link Private Limited, India, at a cost of about Tk 177.11 crore. A proposal of Dhaka Water Supply and Sewerage Authority (DWASA) received the nod of the committee to award a Tk 777.40 crore contract to CAMC Engineering Co. Ltd., China for installation of 14 km transmission line for supply of refined water to Baridhara from Gandharbopur Water Treatment plant. Also read: Govt to import 3.5 lakh MT more rice The Dhaka WASA will award the contract to the Chinese firm under package-2 of its Dhaka Environmentally Sustainable Water Supply (DESWS) project. Three proposals of the Roads Transport and High Division received nods of the committee. As per the proposals, a contract of Tk 112.67 crore will be awarded to  Joint Venture of (1) Md. Moyenuddin (Bashi) Limited (2) Nabarun Traders Limited for works of Package –PW-3 of improvement of Bhola(Parantalukderhat)-Charfasion (Charmanika) local roads to regional highway. The Roads and High Way Department will award Tk 118.64 crore contract to Joint Venture of 1. Md. Badrul Iqbal Ltd, 2. Hassan Techno Builders Ltd., and 3. Oyster Construction and Shipping Company Ltd., for the works under the package-PW-06 of the same project. Also read: Prices of daily essentials soar ahead of Ramadan The Joint Venture of International Consultant and Technocrats Pvt. Ltd. India, and M/s Sheladia Associates, Inc., United States, was appointed as consultant by the Roads and Highway Department for its “Support to Joydevpur-Devgram-Bhulta-Madonpur Highway (Dhaka Bypass) PPP Project”at a cost of Tk 79.58 crore. The committee approved a proposal of the Food Ministry to import 50,000 mts of non-Bashmoti parboiled rice from P.K Agri Link Private Limited, India, at a cost of about Tk 177.11 crore.

The government will import 350,000 metric tons of rice more in the coming days as the Cabinet Committee on Economic Affairs gave its nod in principle to a proposal of the Directorate General of Food on Wednesday.

The Cabinet Committee on Public Purchase on Wednesday approved 10 procurement proposals including one to import of 3.490 million British thermal unit (mmbtu) of liquified natural gas (LNG) from international open spot market.