The government is considering supplying natural gas to a new 590MW power plant in Chattogram for testing and commissioning, even as fuel shortages have left at least 27 existing gas-fired power plants with a combined capacity of 7,227MW idle.
United Chattogram Power Limited (UCPL), a subsidiary of United Group, has sought 50.31 million cubic feet per day (mmcfd) of gas for 85 days to complete commissioning of its combined-cycle power plant in Anwara, Chattogram.
The request has raised questions over gas allocation priorities at a time when existing power plants and industries are struggling to secure adequate supplies.
Once commercially operational, the new plant will require around 97mmcfd of gas, potentially adding further pressure to the country’s already strained supply system.
In a letter dated 15 October, 2026, Rahat Bin Kamal, director of United Chattogram Power Limited, requested the Bangladesh Power Development Board (BPDB) to facilitate gas supply through the state-owned Karnaphuli Gas Distribution Company Limited (KGDCL).
The company said the gas was needed to complete the remaining commissioning activities and prepare the plant for commercial electricity generation.
A BPDB official said the company had requested a total of 4,276.37 million cubic feet of gas over the 85-day period.
Petrobangla has received the proposal and is reviewing it, a director responsible for operations and mines at the state-owned company told Just Energy News.
27 power plants idle amid gas shortage
The request comes as Bangladesh faces a severe shortage of gas for electricity generation.
According to data from the Power Grid Company of Bangladesh Limited (PGCB), at least 27 gas-fired power plants, with a combined generation capacity of 7,227MW, are currently offline because of inadequate gas supplies.
The affected facilities include plants at Ashuganj, Ghorashal, Haripur, Meghnaghat, Siddhirganj, Shahjibazar, Bheramara and Sirajganj, along with several privately owned power stations.
The shutdowns have kept a substantial portion of the country’s gas-fired generation capacity out of operation, including several relatively low-cost public-sector plants.
Petrobangla is currently supplying around 854mmcfd of gas to the power sector against an estimated requirement of 2,525mmcfd, meeting only about one-third of demand.
The resulting shortfall of 1,671mmcfd has constrained electricity generation and intensified competition for limited gas supplies among power producers, industries and other consumers.
Gas allocation priorities under scrutiny
The proposed allocation to the new Chattogram plant has brought renewed attention to how the government distributes scarce gas resources among existing power stations, new projects and industrial consumers.
With dozens of power plants already idle, allocating gas to commission another facility could further strain supplies unless additional gas becomes available.
The issue is particularly significant as Bangladesh relies heavily on costly imported liquefied natural gas (LNG) to supplement declining domestic production.
UCPL, meanwhile, said it had completed several key preparatory activities, including testing and commissioning of gas transportation infrastructure, the city-gate gas metering station and the regulating and metering station.
The company also said the pipeline connecting the gas distribution network to the plant had been filled with gas.
Electrical and protection-system tests have also been completed to prepare the plant for supplying electricity to the national grid.
UCPL said commissioning activities were progressing in line with its contractual obligations and urged the authorities to ensure adequate gas supplies to complete the remaining work.
However, a final decision on the requested allocation will depend on the authorities’ assessment and gas availability.
The situation also raises financial concerns, as idle power plants may continue to receive capacity payments under their contractual arrangements despite generating little or no electricity.
Bringing another gas-fired plant into commercial operation without securing a reliable fuel supply could add to the government’s financial obligations.
Rising gas costs deepen financial pressure
The gas sector is already facing mounting financial pressure as supply costs continue to rise while regulated selling prices remain largely unchanged.
According to Petrobangla’s financial projections, the blended cost of gas is expected to reach Tk52.18 per cubic metre during July-November 2026, compared with an average selling price of Tk23.90.
This leaves a gap of Tk28.28 per cubic metre, increasing the need for government financial support.
Petrobangla received Tk23,900 crore in subsidy payments between March and September 2026 amid financial pressures linked to the Middle East crisis.
Against this backdrop, the proposed gas allocation to the new Chattogram plant highlights the growing challenge of balancing new generation capacity with fuel availability, the operational needs of existing power stations and the financial sustainability of the energy sector.