Md Shamim Jahangir, Editor of Just Energy News, sat down with senior journalist, energy sector expert and former Chairman of Forum for Energy Reporters Bangladesh Arun Karmaker, who has over 35 years of experience covering Bangladesh’s power and energy sector.
In the interview, Arun Karmaker highlighted that Bangladesh has surplus electricity generation capacity but continues to face a shortage of primary fuel. “Despite our ability to generate more electricity than demand, we cannot fully utilise it due to insufficient fuel. Industries are suffering, and unfortunately, this fuel crisis is likely to persist for the foreseeable future,” he said.
He noted that gas shortages already force 2,000-2,500 MW of power plants to run on costly oil, raising both prices and subsidies. Without addressing the primary fuel supply, he warned, these issues will remain highly contentious.
The full interview is presented below:
Md Shamim Jahangir (MSJ): Thank you for joining us.
Arun Karmakar (AK): Thank you, Shamim. Greetings to all the readers and viewers of Just Energy News.
MSJ: You’ve reported and analysed the power and energy sector for over 35 years. How would you evaluate Bangladesh’s current energy situation?
AK: In short: surplus power capacity but shortage of primary fuel. Despite having more electricity generation capacity than needed, fuel shortages prevent us from meeting demand. Industries are feeling the strain, and the crisis is likely to continue.
MSJ: Why do you think the primary fuel crisis will persist?
AK: Previously, local gas reserves met most of our needs. Today, both oil and gas depend heavily on imports. Bangladesh consumes more than 6 million tons of oil annually, and this could rise to 10 million tons, all of which must be imported.
Gas is even more concerning. At one stage, local production reached 2,700 mmcfd, and imports brought supply to 3,800 mmcfd, enough to meet demand. Today, local production has dropped by 1,000 mmcfd, leaving only 1,700 mmcfd. Declining reserves, limited exploration, and constrained import capacity have made this a structural problem, not a temporary one.
MSJ: Do you blame the previous government for this lack of initiative?
AK: To some extent, yes. The past government expanded generation capacity, creating a surplus, but neglected energy security and gas exploration. Electricity may appear stable until 2030, but energy security remains fragile.
MSJ: The interim government has been in power for a year. Are they taking a different approach?
AK: Short-term governments rarely make bold, long-term decisions. Some renewable projects have been added, but there is no comprehensive energy plan yet. They could have followed the example of the 1/11 caretaker government, which implemented long-term reforms.
MSJ: Do you see this crisis continuing?
AK: Absolutely. Gas shortages already force 2,000-2,500 MW of plants to run on oil, increasing costs. Without solving fuel supply issues, prices and subsidies will remain under pressure.
MSJ: Should the government withdraw subsidies?
AK: Gradually, yes, in line with IMF conditions. But without addressing the fuel crisis, subsidy cuts will only make electricity more expensive for consumers.
MSJ: What realistic steps could the interim government take?
AK: They could plan another FSRU or a land-based LNG terminal, though it won’t happen within six months. More importantly, they should prepare a clear energy policy for the next elected government.
MSJ: What challenges will the next government face?
AK: The main challenge will be fuel security. Money alone won’t solve it if infrastructure is lacking. Cutting gas supply to households or CNG stations might save negligible amounts but would provoke huge social unrest, something a political government won’t risk.
MSJ: Finally, what would you recommend to policymakers?
AK: Three priorities: Exploration – launch new Production Sharing Contracts (PSCs) with foreign companies, onshore and offshore. Boost output – Drill deeper, adopt booster technology, and speed up BAPEX operations. And stop misuse – Address pilferage disguised as “system loss.” Unless these fundamentals are addressed, the crisis will persist.
MSJ: Thank you for your insights.
AK: My pleasure.
MSJ: And thanks to our readers and viewers for staying with Just Energy News. Stay tuned for more in-depth discussions on Bangladesh’s energy future.