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Bangladesh moves to build ‘Strategic Energy Reserves’, supporting facilities amid global uncertainty
In a major step towards bolstering energy security, the government has launched initiatives to build Strategic Energy Reserves and supporting storage facilities to help safeguard fuel supplies against global market volatility and emergency disruptions while maintaining regional balance.
To address volatility in global markets and ensure uninterrupted supply during emergencies, initiatives have been undertaken to develop ‘Strategic Energy Reserves’ and related storage infrastructure, which will play an important role in strengthening national energy security and maintaining regional balance,according to a budget document.
According to the document, measures are being taken to establish cost-effective and sustainable infrastructure to maintain energy prices at affordable levels.
To further enhance energy security, the establishment of an additional LNG terminal at Moheshkhali is under review alongside the two existing floating LNG terminals.
Besides, the process of land acquisition and consultant appointment for a land-based LNG terminal at Matarbari, Moheshkhali is at its final stage.
An action plan is being formulated to supply gas from Bhola region to the national gas grid.
Installation of prepaid gas meters is being accelerated to reduce wastage, eliminate illegal connections and minimise system losses.
To reduce risks associated with imported energy and ensure continuity of supply, the government is pursuing a policy of energy source diversification.
This strategy seeks to reduce excessive dependence on the Middle East by expanding energy import cooperation with other potential regions, including Asia, Africa and Europe.
At the same time, initiatives are being undertaken to attract new investment through increased private sector participation, investment-friendly policies and the expansion of Public-Private Partnerships (PPP) in the energy sector.
Thr budget document said initiatives have been undertaken to ensure maximum utilisation of the existing 601.50 kilometres of fuel transportation pipelines.
To increase petroleum refining and storage capacity, the government has adopted a phased plan to establish a new crude oil refinery with an annual refining capacity of 50 lac metric tonnes in Chattogram or another coastal industrial zone.
As part of this initiative, steps have been taken to establish the Second Eastern Refinery Limited (ERL-2) with a capacity of approximately 30 lac metric tonnes.
In addition, a Smart Fuel Distribution Monitoring System has been introduced in 2,722 fuel tank lorries to strengthen monitoring of fuel transportation.
Measures have also been undertaken to operationalise the Single Point Mooring (SPM) facility for petroleum unloading.
To ensure the optimal utilisation of the country's mineral resources, production targets of 6 lac metric tonnes of coal and 14 lac metric tonnes of stone have been set for FY2026-27.
New projects have been undertaken for the development of the Barapukuria Second Phase and the Dighipara Coal Field to enhance coal extraction.
The government is also working towards the economic evaluation of valuable minerals such as zircon and monazite contained in the sands of the Jamuna and Meghna rivers, as well as the digital transformation of services provided by the Department of Explosives.
The document stated that prolonged policy failures, institutional irregularities, mismanagement and import dependency in the energy sector under the fascist government have plunged the sector into a deep crisis.
During that period, excessive emphasis was placed solely on the import of Liquefied Natural Gas (LNG) and petroleum products.
No meaningful initiatives were undertaken to explore gas resources onshore or in the Bay of Bengal, nor to expand refining and storage capacities for petroleum products.
Due to recent geopolitical tensions in the Middle East, international spot prices of petroleum products (particularly diesel) and LNG have risen abnormally.
Considering the hardships faced by the general people , the government has provided substantial subsidies to the energy sector and made only limited adjustments to fuel prices.
At the same time, gas supply has been maintained and gas prices have remained unchanged.
As per the budget document, the government has undertaken a range of initiatives to strengthen energy security by intensifying oil and gas exploration activities, increasing domestic production, expanding petroleum refining capacity and diversifying import sources.
It will establish a strategic fuel reserve system. The government is prioritising the exploration and production of natural gas both onshore and offshore.
The government is also giving priority to strengthening domestic capacity, the document stated.
Through the Bangladesh Petroleum Exploration and Production Company Limited (BAPEX), plans have been adopted to undertake 270 km of geological surveys, 700 line-km of two-dimensional (2D) seismic surveys and 700 square kilometres of three-dimensional (3D) seismic surveys during the period from FY2025-26 to FY2027-28. BAPEX also plans to drill 69 wells and carry out workover operations on 31 wells using its own drilling rigs.
A new Bangladesh Offshore Bidding Round has been announced to facilitate oil and gas exploration in offshore areas.
In order to attract offshore exploration and production activities and ensure participation by international oil companies, the Model Production Sharing Contract (PSC) has been revised while safeguarding national interests.
Nine shallow-water blocks and fifteen deep-water blocks have been opened for international oil companies, where exploration activities will be undertaken under production-sharing agreements.
Furthermore, initiatives have been taken to procure two new exploration rigs for BAPEX to enhance national exploration capacity. Through the critical mineral exploration initiative, the Government is also placing special emphasis on offshore gas and unconventional hydrocarbon exploration beyond conventional energy resources.
3 hours ago
Broken tube wells leave Thakurgaon Sadar Hospital facing drinking water crisis
Patients and their attendants at Thakurgaon 250-bed Modern Sadar Hospital are facing severe hardship due to an acute shortage of safe drinking water caused by malfunctioning tube wells on the hospital premises.
The crisis has affected more than 500 admitted patients, forcing their family members to travel outside the hospital to collect drinking water. Some patients have reportedly been compelled to drink water from bathroom taps at night due to the lack of an alternative.
Hospital sources said the facility usually accommodates around 400 to 500 inpatients daily, while another 600 to 800 people receive treatment through its outpatient department.
To meet the demand for safe drinking water, the hospital has four to five tube wells. However, most have become unusable due to missing handles, nuts and bolts, while some have only the bore pipes remaining with the main structures no longer in place.
With the hospital's tube wells out of service, patients and attendants had been relying on tube wells installed at small roadside hotels and food stalls outside the main gate. But those establishments were removed in a municipal eviction drive about two weeks ago, leaving hospital visitors without their primary source of drinking water.
3 hours ago
Exploration for iron ore deposit in Pirganj resumes after six decades
Exploration activities have officially resumed at the country's first potential iron ore deposit in Pirganj upazila of Rangpur, six decades after it was first identified.
Mohammad Saiful Islam, Secretary of the Ministry of Power, Energy and Mineral Resources, inaugurated the resumption activities at Velamari Pathar in Chhota Paharpur village under Sanerhat Union recently.
According to officials, the site was first identified in 1965 by the then Pakistan government's Mineral Resources Department. Four exploratory wells were drilled in the Velamari Pathar area, covering parts of Shanerhat and Mithipur unions, and the wellheads were sealed with concrete markers, some of which remain visible.
Officials said a team of geologists carried out an initial survey of the approximately six-square-kilometre area on September 6, 1965, shortly after the outbreak of the Indo-Pak war. Based on the survey, the area was identified as having iron ore potential, but no further exploration took place for decades.
1 day ago
Centuries-old Rath Mela draws huge crowds in Bagerhat
Thousands of Hindu devotees and visitors are flocking to the nearly 400-year-old traditional Rath Mela at Laupala in Bagerhat every day, where religious devotion blends with a vibrant rural fair featuring handicrafts, household goods, amusement rides and giant "Balish Mishti."
The month-long fair, regarded locally as one of the country's oldest and largest Rath festivals, began on July 16 with the Rath Yatra of Lord Jagannath at the Sri Sri Gopal Jiu Temple at Laupala village in Bagerhat Sadar upazila.
2 days ago
Staff shortage cripples Narail Nursing College; one teacher runs entire institution
Established to produce skilled nursing professionals, Narail Government Nursing College is struggling to function with only one teacher for nearly 200 students, while the lack of residential facilities has forced students to live in classrooms, exposing serious shortcomings three years after its academic activities began.
The college, which started classes in 2023, is also grappling with a prolonged manpower crisis, vacant support staff positions and the suspension of students' monthly stipends, affecting both academic activities and student welfare.
According to college authorities, the institution was established in 2020 on 2.90 acres of land at Bhawakhali in Narail municipality adjacent to the district hospital at a cost of around Tk 12 crore.
However, despite the passage of several years, no permanent posts have been created as the institution has yet to receive an economic code, a prerequisite for staffing and budget allocation.
Initially, the college operated with a principal and four instructors on deputation from other institutions. At present, only one instructor and one office assistant are running the entire institution.
The acute shortage has severely disrupted teaching and academic management for nearly 200 students enrolled in four batches of the three-year diploma programme.
The college also lacks residential facilities despite the diploma being a residential course. Female students are currently staying in makeshift dormitories created inside classrooms of the academic building, while male students have been forced to rent accommodation outside the campus.
Students have also been deprived of their monthly stipends for the past three years, creating financial hardship, particularly for those from low-income families.
Apart from the shortage of teachers, the college has no accountant, computer operator or laboratory operator. Posts for cook, security guard, cleaner and other support staff also remain vacant, causing daily operational difficulties.
Students urged the authorities to appoint the required number of qualified teachers immediately and ensure adequate staffing to restore normal academic activities.
They expressed hope that prompt intervention by the authorities will remove uncertainty surrounding their education and help ensure a proper learning environment.
Sutapa Sikder, the college's lone instructor, described the manpower shortage as the institution's biggest challenge.
"Around 10 teachers are needed for nearly 200 students, but I am the only instructor here. You can imagine the situation," she said.
The instructor said the problems have already been communicated to the higher authorities and expressed hope that additional teachers will be appointed soon.
Civil Surgeon of the district Dr Md Abdur Rashid said the issues relating to manpower, accommodation and other logistical shortcomings have been reported to the higher authorities.
He said the authorities concerned are also working to secure the required economic code and create the necessary posts, expressing hope that the problems will be resolved soon.
2 days ago
Bangladesh plans long-term energy transition with audits, renewables
The government has taken a move to strengthen energy audits across major industries as part of a broader strategy to curb energy waste, reduce dependence on imported fuels and build a more efficient and financially sustainable power sector.
The initiative, outlined in the national budget document, seeks to promote the use of energy-efficient equipment and encourage designated industrial consumers to optimise electricity consumption at a time when rising fuel costs and growing demand continue to put pressure on the country’s energy system.
The move comes as Bangladesh grapples with mounting electricity generation costs driven by dwindling domestic gas reserves and increasing reliance on imported liquefied natural gas (LNG).
More than 40 percent of the country’s electricity generation capacity is gas-based, making the sector particularly vulnerable to fluctuations in global fuel prices.
Shift towards renewable energy
To address these challenges, the government plans to reduce dependence on imported fossil fuels by expanding renewable energy and making better use of indigenous energy resources.
The budget document says investors will receive incentives to manufacture renewable energy equipment locally, including solar panels, wind turbine components and battery storage systems.
Bangladesh has set an ambitious target of meeting 20 percent of its electricity demand from renewable sources by 2030, with the share expected to rise to between 30 and 50 percent by 2050.
To achieve these goals, authorities have outlined a series of initiatives including expanding rooftop solar programmes, conducting wind resource assessments in coastal regions, implementing utility-scale solar projects and piloting waste-to-energy generation.
The government also plans to formulate a National Energy Storage Roadmap and improve grid flexibility to accommodate a larger share of renewable electricity.
Expanding generation and transmission
The government aims to raise the country’s electricity generation capacity to 35,000 megawatts by 2030 while expanding the transmission network to 25,000 circuit kilometres.
Construction of the 2,400MW Rooppur Nuclear Power Plant is progressing rapidly, according to the document.
Fuel rods have already been loaded into one reactor, with around 300MW expected to be connected to the national grid by August 2026. The first unit is projected to supply 1,200MW by January 2027.
The government says its long-term objective is to establish a modern, affordable, uninterrupted and environmentally sustainable electricity system.
Addressing structural weaknesses
Electricity generation costs have risen sharply due to what it describes as years of unplanned power and energy policies, corruption, rent-seeking, mismanagement and irregularities, according to the document.
It alleged that capacity charge mechanisms enabled widespread financial misappropriation and capital flight, while several large-scale power projects undertaken during the previous administration included controversial contractual provisions that imposed heavy financial obligations through expensive power purchases and imports.
Heavy reliance on fossil fuels has further increased production costs, the document said.
As a result of the widening gap between electricity generation costs and retail tariffs, government subsidies for the power sector are expected to exceed Tk 40,000 crore in the current fiscal year.
Although Bangladesh’s installed electricity generation capacity now stands at 28,919MW including imported electricity and grid-connected renewable power, ensuring uninterrupted and high-quality supply remains a challenge.
Reform agenda
The government says it has prioritised reforms in electricity generation, transmission and distribution through short-, medium- and long-term plans.
Among the key measures are strengthening transparency and accountability, identifying those involved in corruption and tightening monitoring across the sector.
It has planned to retire inefficient power plants, modernise facilities where necessary and adopt a least-cost generation strategy.
The budget outlines plans to review capacity charges and power purchase agreements to improve financial accountability, while modernising transmission and distribution systems through smart grid technologies aimed at reducing system losses.
Special emphasis has also been placed on expanding electricity access in remote and island areas.
To keep electricity tariffs affordable, future power plants will be developed through competitive bidding, the document says.
In metropolitan areas, underground distribution lines and substations will be introduced as part of broader grid modernisation efforts.
The government has also prepared a draft Power Sector Strategy Paper (2026–2050), which proposes a least-cost generation plan, a balanced energy mix and the integration of advanced technologies such as SCADA, Geographic Information Systems (GIS) and Advanced Metering Infrastructure (AMI).
Besides, the entire process of obtaining new electricity connections and paying bills has been automated to improve customer services.
With industrial energy audits, renewable energy expansion and governance reforms forming the backbone of the strategy, the government hopes to make Bangladesh’s power sector more efficient, resilient and financially sustainable while meeting the country’s growing electricity demand.
3 days ago
10 Khulna villages face flood threat as Atai River embankment weakens
A vulnerable embankment along the Atai River in Dighalia upazila of Khulna district has sparked fears of flooding in 10 villages following days of heavy rainfall and high tidal surges.
The affected section located between Mominpur and Hajigram villages is part of Kamargati–Pather Bazar road which once served as a key transport route connecting several villages with Khulna city through Daulatpur.
Over the past decade, continuous riverbank erosion has washed away nearly two-thirds of the road, leaving the remaining portion to function as a flood protection embankment. Residents now use an alternative road for communication.
Locals said the recent heavy rains and rising tidal waters have severely weakened the embankment.
Water began overtopping the structure, causing large cracks and raising fears of an imminent breach.
Sensing the danger, villagers gathered on Friday evening after the tide receded and carried out emergency repairs using bamboo and earth under floodlights to temporarily reinforce the embankment.
However, they said the risk remains high.
3 days ago
How betel cultivation changed the fortunes of three Naogaon villages
What was once a farming community dependent on seasonal rice cultivation has evolved into a thriving hub of commercial betel leaf production, bringing prosperity and optimism to hundreds of families in three villages of Naogaon. For many farming families in Jalm, Magura and Jageshwar, the vibrant green betel gardens symbolise more than agricultural success—they represent financial independence and a promising future built leaf by leaf. About 11 kilometers of the three villages under in Kirtipur Union in Sadar upazila, are now widely known as the district's "betel villages.” Rows of neatly maintained betel gardens stretch across homesteads and agricultural fields, reflecting years of hard work and investment by farmers who have embraced the high-value crop as a sustainable source of income. Home to around 2,500 people, the three villages have become a model for commercial betel cultivation, replacing traditional dependence on paddy farming with a more profitable agricultural enterprise. From Rice Fields to Prosperity According to local farmers and officials, the area's elevated, flood-free sandy loam soil and favorable climate provide ideal conditions for betel cultivation.
Combined with controlled irrigation, proper drainage, regular maintenance and guidance from agricultural extension officials, farmers have developed efficient and modern cultivation practices.
3 days ago
Cracks before completion: Tk 2.2cr bridge in Chandpur sparks quality concerns
A bridge under construction at a cost of around Tk 2.2 crore in Chandpur's Matlab municipality has developed major cracks before the work is even completed, triggering allegations of poor-quality construction and prompting residents to demand an independent technical investigation.
The nearly 100-foot bridge, being built near Bardia Bazar to replace an old 10-foot culvert, has been under construction for about four months. The project also includes approach roads on both sides.
According to locals, visible cracks have appeared in different parts of the bridge, although construction is still underway.
They alleged that substandard construction materials and irregularities have marked the project from the beginning.
4 days ago
Biman seeks proposals for dry lease of 3 Dreamliners to expand fleet
In a move to expand and modernise its fleet, Biman Bangladesh Airlines has invited international proposals to dry lease three Boeing 787-9 Dreamliner aircraft for six years, aiming to induct the wide-body jets by January 1, 2027.
A dry lease in aviation is an arrangement where an aircraft owner provides only the bare aircraft without crew, maintenance, or insurance.
The leasing party (lessee) takes full operational control, assuming responsibility for supplying their own pilots, handling maintenance, arranging insurance, and operating the aircraft under their own Air Operator Certificate (AOC).
According to a Request for Proposal (RFP) issued on July 15, the national flag carrier is seeking offers from airlines, aircraft operators, owners, manufacturers and leasing companies for the dry lease of three Boeing 787-9 aircraft for a period of 72 months.
The deadline for submitting proposals is 10:00am Bangladesh Standard Time (BST) on August 9.
The RFP states that the aircraft should preferably be delivered by January 1, 2027, although bids offering later delivery schedules until February 28, 2027 will also be considered during technical evaluation.
Biman has specified that the aircraft must be no more than 15 years old as of June 30, 2027, and should be powered by GEnx-1B74/75 engines with a maximum take-off weight of 254 tonnes. Preference will be given to sister-ship aircraft from the same lessor.
Under the proposed, each aircraft must feature a two-class cabin configuration with more than 300 passenger seats.
All seats must be new, while the aircraft must be delivered in full operating condition with valid Certificates of Airworthiness and Registration.
The airline has also stipulated that major scheduled maintenance, including heavy maintenance checks and landing gear overhauls, should not become due within the first 24 months of the lease period. Each aircraft must be delivered immediately after undergoing a fresh C-check, it said.
The RFP outlines extensive technical requirements, including advanced avionics, Engine Health Monitoring systems, Aircraft Health Monitoring capability, Flight Data Monitoring, upgraded flight recorders, TCAS Version 7.1, ACARS, Terrain Awareness and Warning Systems, satellite communications, GPS/GNSS navigation and compliance with all applicable FAA, EASA and Civil Aviation Authority of Bangladesh regulations.
Biman has also required the aircraft to be painted in its own livery at the lessor’s expense before delivery and equipped with Atlas-standard galley facilities capable of serving two major and two minor meals for passengers and crew.
Financial proposals must separately quote monthly lease rentals for each aircraft, maintenance reserves for major components and security deposits.
Biman said it expects each aircraft to operate about 4,000 flight hours annually.
The evaluation process will consist of technical and financial assessments.
Technical proposals meeting all mandatory requirements will qualify for financial evaluation. Overall scores will be calculated by assigning a 25 percent weight to technical evaluation and 75 percent to financial evaluation, with the highest-scoring proposal selected as the lowest evaluated bid.
Biman said negotiations would be held in Dhaka with qualified bidders before signing the lease agreement. The airline also reserved the right to accept or reject any or all proposals without assigning any reason.
At present, the total number of aircraft in the fleet is 19. Of these, four are Boeing 777-300 ER, four are Boeing 787-8, two are Boeing 787-9 Dreamliner, four are Boeing 737 and five are Dash 8-400 aircraft.
In order to modernize the Biman fleet with new generation aircraft, Biman signed two agreements with Boeing in April and May 2008 for purchasing new generation four 777-300ER, four 787-8 and two 737-800 aircraft.
Four 777-300ER aircraft joined Biman fleet in October/November 2011, February 2014 and 21 March 2014. Two 737-800s aircraft joined Biman fleet in November/December 2015.
Three Boeing 787-8 aircraft joined Biman fleet in August/December 2018 and August 2019. On 16 May 2019, 5th Boeing 737-800 arrived to join Biman’s fleet. 6th Boeing 737-800 arrived to join Biman fleet in June 30, 2019.
Fourth new 787-8 aircraft delivered by Boeing in September 2019.
The first of the three Dash-8 planes purchased based on G2G agreement between the Governments of Bangladesh and Canada was added to the fleet on 26 December 2020 and the second & third are respectively on 24 February 2021 & 05 March 2021.
5 days ago