As Bangladesh braces for rising electricity demand during Ramadan and the peak summer months, the government is turning to costly Liquefied Natural Gas (LNG)-based power generation to mitigate load shedding.
The state-owned Petrobangla has sought Tk 2,400 crore from the Bangladesh Power Development Board (BPDB) to finance the import of four additional LNG cargoes dedicated to electricity generation.
Petrobangla has requested the allocated funds by March 6, 2025, to ensure timely payment to suppliers. “We have already sought Tk 2,400 crore for LNG cargo procurement as per discussions with the Power Division,” said the Secretary of the Energy and Mineral Resources Division (EMRD) Mohammad Saiful Islam.
The additional four LNG shipments will supplement the regular supply of 90 cargoes expected to meet the country’s overall energy demands in 2025.
However, concerns persist regarding financial constraints. Petrobangla is already facing a liquidity shortfall of Tk 13,852 crore due to unpaid bills, raising questions about the sustainability of increased LNG imports.
Cost Comparison: LNG vs. HFO-Based Power Generation
Despite the high cost of LNG, officials argue that it remains a cheaper alternative to heavy fuel oil (HFO)-based power plants. “The power generation cost using LNG is Tk 2.5 per kilowatt lower compared to HFO plants,” an energy ministry official stated.
It means that the power generation cost of imported LNG is more than double compared to traditional gas-based power production. The power generation cost of local gas is around Tk 5.
However, the government has yet to disclose a full comparative analysis of electricity generation costs across different energy sources.
The Power Division has assured that efforts are underway to maintain electricity tariffs at existing levels through internal cost-cutting measures. “We are exploring more cost-effective options for power generation while ensuring an uninterrupted supply,” said Power Secretary Farzana Momtaz.
Projected LNG Imports and Budget Impact
Bangladesh plans to import 96 LNG cargoes at an estimated cost of Tk 55,357 crore in the fiscal year 2024-25. The projection for 2025-26 increases to 115 cargoes, costing Tk 67,607.35 crore, with an average price of Tk 587 crore per shipment.
These figures underscore the growing financial burden of LNG imports, necessitating strategic energy planning to balance affordability and supply stability.
Rising Power Demand in Summer
With electricity demand surging from 9,000–10,000 megawatts (MW) in winter to 17,000–18,000 MW in summer, the additional LNG imports aim to bridge the gap.
“Around 2,000 MW is required for irrigation alone, which cannot be reduced without affecting agricultural production. The remaining 5,000–6,000 MW is consumed by air conditioning and excessive lighting,” said Power, Energy, and Mineral Resources Adviser Muhammad Fauzul Kabir Khan.
He confirmed that four additional LNG cargoes are being imported specifically to ensure a stable power supply during Ramadan, highlighting the government’s focus on energy security amid rising consumption pressures.
While LNG-based power generation is a necessary short-term solution, the long-term financial implications remain a concern. The government must strike a balance between affordability and reliability, ensuring sustainable energy policies that do not overburden public finances.
As Bangladesh’s electricity demand continues to grow, investment in alternative energy sources and efficient grid management will be crucial to minimising reliance on expensive fuel imports.
