Govt ramps up coal power amid LNG concerns3 Mar 2026 20:08
Govt ramps up coal power amid LNG concerns
The government has stepped up efforts to boost electricity generation from coal-fired power plants amid concerns that potential disruptions to liquefied natural gas (LNG) shipments through the Strait of Hormuz could trigger supply shortages and a power shortfall.
Officials said contingency measures are underway but warned that a prolonged disruption could lead to load shedding and higher fuel costs.
Currently, state-owned Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) is supplying 850-900 million cubic feet per day (mmcfd) of gas to power plants, far short of the sector’s demand of roughly 2,524 mmcfd.
Energy Division officials estimate that a disruption in LNG cargoes could slash supply by an additional 200-250 mmcfd, potentially bringing availability down to around 700 mmcfd.
Officials warned that such a decline could trigger a power generation shortfall of 1,400-1,800MW.
A senior official from the Power and Energy Ministry noted that the majority of Bangladesh’s long-term LNG contracts are linked to Middle Eastern suppliers, with shipments transiting the Strait of Hormuz.
The country’s largest long-term LNG supplier, QatarEnergy, ships its cargoes through this strategic route.
“If two cargoes become unavailable, we could lose 200-250 mmcfd in March,” he said, adding that authorities have directed relevant agencies to increase coal-based power generation.
Power and Energy Minister Iqbal Hasan Mahmud Tuku told the media that the government is closely monitoring the situation.
“We are tracking developments and preparing plans to manage any disruption,” he said, emphasising that ensuring an uninterrupted electricity supply remains a top priority.
According to Power Grid Bangladesh PLC, of the 12,454MW generated Monday afternoon, 4,095MW came from coal-fired plants and 4,630MW from gas-fired facilities.
The Bangladesh Power Development Board expects coal-based output to reach 5,000MW soon, backed by coal reserves sufficient for roughly a month of full-capacity operation.
Officials indicated that boosting output from oil-fired plants is also under consideration in light of recent fuel price adjustments.
However, greater dependence on oil and spot LNG purchases, which cost 35-40% more than long-term contracts, could strain public finances.
Meanwhile, electricity imports from India have increased, with Adani Power supplying over 1,400MW in recent days.
Authorities warned that the situation remains fluid and that if LNG disruptions continue, limited load shedding may become unavoidable.
https://www.daily-sun.com/business/861209
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