The Energy and Mineral Resources Division (EMRD) will receive Tk 2400 crore to procure four liquefied natural gas (LNG) cargoes to supply gas to power plants until September 2025, ensuring a regular supply of 1075 million cubic feet per day (MMcfd) of gas.
This decision followed a meeting on Thursday between Power Division Secretary Farzana Momtaz and EMRD Secretary Mohammad Saiful Islam, where they discussed the commitment to supplying 1100 MMcfd of gas to power plants.
On March 27, 2025, the Power Division formally requested the Finance Division to release funds for the EMRD to purchase the additional LNG required for power generation.
“We have received assurances to maintain a maximum supply of 1075 MMcfd of gas to power plants from April to September 2025,” confirmed a Power Division official. The official added that the stable gas supply would help save Tk 900 crore during this period.
“We have assured the International Monetary Fund (IMF) that we will reduce internal costs or subsidies to avoid increasing power tariffs for now,” the official stated.
This additional gas supply is part of broader power sector reforms linked to commitments made to the IMF.
Previously, the Power Division and the EMRD had disagreements over gas supply to power plants. On average, the Power Division received only 1000 MMcfd of natural gas.
Petrobangla requested Tk 2400 crore to ensure an additional 50 MMcfd of gas, but the Power Division sought an extra 100 MMcfd for power generation, according to officials from both divisions.
“We have requested the release of Tk 400 crore per month in subsidies to the EMRD,” said an official.
During Ramadan, the government ensured a stable power supply nationwide. “We have been meeting every 10 days to coordinate and maintain an uninterrupted power supply,” Power Secretary Farzana Momtaz told Just Energy News last week.
She thanked power distribution and generation officials for their cooperation and emphasized the joint efforts of the Power Division and EMRD to ensure a steady gas supply.
The ongoing dispute between the Power Division and EMRD stems from the underutilization of 6,177 megawatt (MW) of gas-fired electricity capacity out of a total 11,677 MW.
“Petrobangla had promised to supply up to 1200 MMcfd of natural gas, but we have been receiving only 1000 MMcfd on average,” Bangladesh Power Development Board (BPDB) Chairman Engr. Rezaul Karim told Just Energy News. He noted that the shortfall has left more than half of the generation capacity idle.
The government plans to generate up to 6,200 MW from gas-based power plants, but due to the ongoing gas shortage, only 5,500 MW is currently being produced, according to the BPDB Chairman.
Meanwhile, EMRD Secretary Mohammad Saiful Islam confirmed that arrangements have been made to supply four additional LNG cargoes. Under the agreement, the Power Division is responsible for covering the Tk 2400 crore import cost.
“We cannot import these additional LNG cargoes without payment,” said the EMRD Secretary.
However, Power Division officials have yet to finalize a tariff agreement for the additional gas supply. They have also sought confirmation from Petrobangla on the month-to-month availability of gas from these LNG cargoes.
On March 11, 2025, BPDB formally requested Petrobangla to provide the maximum 1200 MMcfd of natural gas for electricity generation starting this month.
“Gas distribution companies have supplied a maximum of 1008 MMcfd against the pledged 1200 MMcfd in March,” BPDB stated in a letter. The insufficient supply has prevented many gas-based power plants from operating at full capacity.
BPDB’s letter highlighted increased electricity generation costs due to the gas shortfall, which has led to a higher subsidy burden. It also noted that an additional 200 MMcfd of gas would allow seven power plants to resume or increase 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).
“Supplying 1200 MMcfd of gas to on-grid power plants is crucial for maintaining stability in the power sector and ensuring the government’s economic plans stay on track,” BPDB Secretary Md. Rashedul Huque Prodhan concluded in the letter.
Currently, Petrobangla is supplying 2888 MMcfd of natural gas against a demand of approximately 4000 MMcfd.