The Power Division is at odds with the Energy and Mineral Resources Division (EMRD) over the tariff for additional natural gas supply to electricity generation during the peak summer months.
This ongoing dispute has left around 6,177 MW of gas-fired electricity unutilized, against a total generation capacity of 11,677 MW.
“Petrobangla has promised to supply us with a maximum of 1,200 MMCFD of natural gas, but we are only receiving an average of 1,000 MMCFD,” Bangladesh Power Development Board (BPDB) Chairman Engr. Rezaul Karim told Just Energy News on Saturday. He added that the lack of adequate gas supply has led to the shutdown of more than half of the generation capacity.
The government’s plan aims to generate up to 6,200 MW from gas-based power plants, but only 5,500 MW is being generated due to the ongoing gas supply shortage, according to the BPDB chairman.
Meanwhile, EMRD Secretary Mohammad Saiful Islam confirmed that the EMRD has made arrangements to supply four additional LNG cargoes for power generation. Under this agreement, the Power Division is committed to paying the import cost of the LNG, estimated at Tk 2,400 crore.
“We cannot import the additional LNG cargoes without payment for the cargoes,” said the EMRD Secretary.
However, officials from the Power Division have stated that they have not made any commitments regarding the tariff for the additional gas supply to power generation. The Power Division has also sought confirmation from Petrobangla about the month-to-month availability of additional gas supply from these cargoes.
“They (EMRD) have not set any preconditions on the tariff for the additional gas supply to power plants. Recently, Petrobangla sent us a letter demanding payment of Tk 2,400 crore for the import of the additional four cargoes,” said the BPDB chairman.
The EMRD has also suggested that the Power Division cover the cost of importing Heavy Fuel Oil (HFO) to facilitate the LNG imports.
On March 11, 2025, the BPDB sent an official letter to Petrobangla requesting the maximum 1,200 MMCFD of natural gas for electricity generation from this month.
“Gas distribution companies have been supplying a maximum of 1,008 MMCFD against the pledged 1,200 MMCFD in March,” the letter stated. Due to the inadequate supply, gas-based power plants have been unable to operate at full capacity.
The BPDB’s letter also highlighted the increased cost of electricity generation due to the gas shortfall, which in turn has led to a higher subsidy burden. The letter further emphasized that an additional 200 MMCFD of gas would allow seven gas-based power plants to resume or increase their output.
The affected plants include: RPCL 210 MW Power Plant, Chandpur 150 MW Power Plant, Ghorasal Power Plant, Meghnaghat Power Plant, Bheramara 410 MW Power Plant, and Sirajgonj Units 1 and 2 (225 MW each).
“The supply of 1,200 MMCFD of gas to on-grid power plants is crucial for maintaining stability in the power sector and ensuring the implementation of the government’s economic plans,” the letter, signed by BPDB Secretary Md. Rashedul Huque Prodhan, concluded.
Currently, Petrobangla is supplying 2,888 MMCFD of natural gas against a demand of approximately 4,000 MMCFD.