Dhaka: Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood on Tuesday announced that the government is intensifying efforts to tackle the ongoing gas crisis while also expanding solar power initiatives to ensure a more reliable energy supply for industries. According to United News of Bangladesh, Minister Mahmood emphasized the critical impact of inadequate gas supply on industries, particularly warning of potential production disruptions that could significantly affect businesses’ cash flow and their ability to repay bank loans.
The minister made these remarks during a seminar titled “Crisis in the Fuel Sector: Prospects and Path forward,” organized by the Forum for Energy Reporters Bangladesh (FERB) at the Dhaka Club. He highlighted ongoing discussions with experts and industry representatives to devise sustainable solutions to the energy crisis. A recent visit by a foreign team to Bhola and subsequent discussions with counterparts have raised hopes for international collaboration in addressing the gas issues in the region.
Looking forward, a meeting involving Prime Minister Tarique Rahman, industrialists, and energy experts is anticipated to deliberate on the crisis and explore viable solutions. Minister Mahmood acknowledged the inherited infrastructure challenges and stressed the importance of development that not only focuses on financial returns but also on sustainable economic growth.
Addressing a recent LNG supply disruption, the minister attributed the issue to a fire at an LNG facility. He assured that any decision to suspend operations for maintenance would be made cautiously to avoid further industrial disruptions. On coal-based power generation, Mahmood noted the government’s cautious approach, given international reservations about coal-fired projects and reduced funding for them.
Furthermore, the government is actively pursuing increased private-sector participation in energy utilities, with representatives from chambers of commerce already appointed to power distribution boards. In the realm of renewable energy, the minister announced an aggressive push for solar power, with a new policy designed to make the sector more attractive to businesses and investors. This includes plans for rooftop solar under an OPEX model and potential equity-based arrangements for large solar projects.
Mahmood also discussed offshore oil and gas exploration efforts, including plans to attract major international energy companies through a new tender process. He is expected to visit Houston in November to engage with energy company executives and invite their participation in Bangladesh’s exploration activities.
Defending the proposal for greater private-sector involvement in fuel oil distribution, the minister said this move aims to prevent supply disruptions and black marketing. Despite concerns of a fuel shortage due to Middle East tensions, Bangladesh maintained adequate reserves, although long queues at petrol stations prompted the consideration of broader private participation.
Minister Mahmood concluded by reflecting on the government’s achievements in overcoming major inherited challenges and reiterated the administration’s commitment to resolving remaining issues without political distractions. The seminar was presided over by FERB chairman M Azizur Rahman.