Bangladesh plans to begin installing two additional coal-fired power units near Matarbari Power Plant in Cox’s Bazar, with a combined generation capacity of 1,200 megawatts, by the end of 2026 or early next year, said the home affairs minister.
Home Affairs Minister Salahuddin Ahmed said the government had taken a policy-level decision to proceed with the project as it seeks cheaper sources of electricity amid rising fossil-fuel costs and heightened global energy market uncertainty.
He was speaking at an event marking the 27th anniversary of the Chittagong Journalists Forum, Dhaka (CJFD), at a club in Dhaka on Friday evening, ahead of the prime minister’s planned visit to Matarbari.
The minister said the government was also preparing to expand LNG infrastructure at the southern coastal site, including plans for two additional floating storage and regasification units (FSRUs).
Bangladesh has faced a significant gas supply deficit following the unexpected shutdown of one of its existing FSRUs, he said, adding that restoring adequate supply would take time. The proposed facilities are intended to provide additional capacity and resilience.
The new LNG facilities at Matarbari are expected to be linked directly to the Chattogram gas transmission network, according to the minister.
The government is also considering the construction of another navigational channel at Matarbari to support the expansion of energy infrastructure. The existing channel is planned to be deepened from a 16-metre to an 18-metre draft, allowing larger vessels to access the jetty at Matarbari deep-sea port.
Ahmed said the government had also approved plans to increase the capacity of the single-point mooring system, including an additional 100,000 tonnes of handling or storage capacity.
He warned against concentrating too much of the country’s energy infrastructure in a single location, saying the government wanted to spread supply facilities across Chattogram, Mongla and Payra.
Bangladesh is also seeking to diversify its sources of imported energy in response to disruption caused by international conflicts, including the wars involving Russia and Ukraine and the continuing conflict in the Middle East.
The country has begun broadening its energy procurement market beyond traditional Middle Eastern suppliers, with Indonesia and Malaysia among the countries being considered for increased supplies, Ahmed said.
The government is simultaneously exploring new domestic gas reserves, although any discoveries would take an estimated six to seven years to contribute significant new production, he said.
Renewable energy expansion
The minister said Bangladesh also intended to accelerate its transition towards renewable power.
By 2030, the government aims to generate between 5,000MW and 10,000MW from solar power projects, he said.
Bangladesh currently has an electricity generation capacity of about 15,000MW against demand of roughly 17,000MW, according to Ahmed. The government wants to raise total generation capacity to around 30,000MW while increasing the share of renewable energy.
“We cannot afford to move forward without a plan,” Ahmed said, arguing that the government had a long-term strategy for strengthening national energy security.
Two-hour Dhaka-Chattogram rail journey planned
Ahmed also said the government was planning a high-speed railway between Dhaka and Chattogram that could eventually cut the journey between the two cities to about two hours.
He said greater attention should be given to alternative railway routes, including so-called chord lines, as part of efforts to modernise Bangladesh’s transport network.
According to the minister, earlier governments had carried out studies on improving transport infrastructure but had failed to implement many of their proposals.
The proposed express rail link would form part of a broader effort to improve connectivity between the capital and Chattogram, Bangladesh’s principal port city.
At the CJFD anniversary event, speakers included S A M Mahfuzur Rahman, the prime minister’s speechwriter; Kader Gani Chowdhury, secretary general of the Bangladesh Federal Union of Journalists; DMP Commissioner Mosleh Uddin Ahmed; and CJFD president Md Shamim Jahangir.
Land deputy minister and Chittagong Hill Tracts affairs deputy minister Mir Helal Uddin joined the event virtually. CJFD General Secretary conducted the event.