Dhaka: Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood on Monday announced that a fire at one of Bangladesh’s two Floating Storage and Regasification Units (FSRUs) has disrupted liquefied natural gas (LNG) imports. This incident has exacerbated the country’s ongoing gas shortage, impacting electricity generation and industrial production.
According to United News of Bangladesh, the minister stated that the fire occurred about a week ago. While it was not a major disaster, the affected FSRU is currently undergoing repairs, which are expected to take another 10 to 15 days. Speaking at a policy roundtable titled ‘Navigating Global Shifts: Fostering Energy Security and Resilience in Bangladesh’, Mahmood emphasized the urgency of the situation, noting that two LNG cargoes are currently waiting offshore but cannot be unloaded due to the disruption.
The event, organized by the Bangladesh Institute of Peace and Security Studies (BIPSS) and moderated by its President Major General A N M Muniruzzaman (Retd), highlighted the severe gas shortages affecting households, industries, and power plants across the country. The minister explained the heavy reliance of Bangladesh’s power sector on natural gas and the challenges posed by the importation of alternative fuels like LNG and coal.
Mahmood pointed out that many gas-fired power plants are idle due to fuel shortages, although capacity payments to private power producers continue. He further discussed the financial pressures facing the power sector, citing unpaid liabilities inherited from the previous government and the substantial costs of fuel imports amounting to approximately US$3.65 billion over the past six months.
In response to the crisis, the government plans to expand renewable energy sources to reduce dependence on imported fossil fuels. Mahmood outlined a new renewable energy policy aiming to add 10,000 megawatts of renewable electricity within five years, focusing on both utility-scale solar projects and rooftop solar installations.
The policy includes a model for rooftop solar installations where private investors will install solar panels and be compensated through net metering. Additionally, cluster-based large solar parks are planned, with the Power Grid Company of Bangladesh (PGCB) purchasing the electricity generated. Negotiations with investors for these projects are ongoing, with land allocation expected to begin in August.
Emphasizing the role of battery storage technology in the energy transition, Mahmood expressed optimism that achieving the renewable energy target would ease the energy sector’s challenges. In the opening remarks, BIPSS president Muniruzzaman highlighted the need for Bangladesh to shift towards ‘energy sovereignty’ to mitigate external risks and ensure reliable, sustainable energy supplies.
He argued for a diversified and regionally integrated energy system to shield Bangladesh from external shocks and support its long-term economic growth. Muniruzzaman expressed hope for a more resilient and sovereign energy future for the country.