Energy Master Plan will threaten Bangladesh’s economy, environment: research

It will put the economy at risk and expose millions of people to health hazards from pollution and climate impacts such as floods and cyclones, a report says

As Bangladesh's Integrated Energy and Power Master Plan, or IEPMP, remains in effect, the country will need to spend nearly $50 billion on new LNG projects and import terminals, according to the plan.

A research report indicates that these projects will put the national economy at risk and expose millions of people to health hazards from pollution and climate impacts such as floods and cyclones.

The warning was sounded in a report jointly published by Market Forces, Waterkeepers Bangladesh, and Dhoritri Rokkhay Amra, or DHORA.

A press conference was held on Saturday at the National Press Club to release the report titled "The Cost of a $50 Billion LNG Project for Bangladesh and a Sustainable Future."

According to the report, Bangladeshis are currently burdened by electricity costs, and continued reliance on costly imported LNG could worsen this situation.

The analysis further shows that instead of investing $50 billion in LNG, Bangladesh could achieve 62 gigawatts of renewable energy generation capacity, doubling the country’s current electricity production capacity amid intense heatwaves and power shortages.

The report, titled "Expensive LNG Expansion," reveals that multinational companies like GE Vernova from the US and JERA from Japan are interested in expanding LNG projects in Bangladesh, posing long-term risks to Bangladesh's environment and local communities.

Japan's governmental agency JICA and the energy think tank Institute of Energy Economics Japan, or IEEJ, have developed an import-dependent, LNG-centric energy master plan for Bangladesh.

The report also highlights that the proposed 41 new gas-fired power plants would emit toxic gases, exacerbating respiratory problems and worsening Bangladesh's already critical air pollution situation.

Muzibur Rahman Howlader, former chairman of the National River Conservation Commission and member of DHORA’s advisory board, said these gas and LNG projects have been established by seizing the resources of the people.

He called for strict measures, even criminal charges, against those who implemented these projects by seizing resources, demanding accountability from them.

“We do not want any project that harms people. Investment should align with our needs. We will continue our movement through dialogues with the interim government until this demand is included in government policies.”

Munira Chowdhury, Asia energy analyst at Market Forces and author of the report, said: “Foreign companies are unjustly trying to make Bangladesh dependent on polluting LNG, harming millions and the planet.”

She added, “The people of Bangladesh deserve clean, reliable, renewable energy and healthy air, not dirty fossil gas. This is a prime opportunity for Japanese companies and donors to support Bangladesh’s transition to renewables and grid modernisation.”

“Our research shows that the $50 billion plan includes LNG import terminals and 41 new LNG power plants with a combined capacity exceeding the country’s existing electricity fleet,” said Munira.

She added, “Apart from the massive construction costs, Bangladesh would need to spend $7-11 billion annually on gas imports. Bangladesh has vast potential in renewable energy, with 240 GW of solar and 30 GW of offshore wind power.”

She called on policymakers to redirect the funds allocated for planned LNG projects toward renewable energy and grid development.

Sharif Jamil, coordinator of Waterkeepers Bangladesh and DHORA’s secretary, said: “The IEPMP developed by JICA and IEEJ must be revised as it is pushing Bangladesh toward LNG dependency, which endangers the country’s energy security.”

He added the proposed LNG projects pose financial and environmental risks, warning that “These projects are not only financially harmful but also devastating to our valuable ecosystems and biodiversity, on which millions of livelihoods depend.”

“Renewable energy sources like solar and wind power represent a safer future for Bangladesh. Though Japanese companies have investments in the power sector, JICA’s policymaking in this sector represents a serious conflict of interest.”

Anu Muhammad, former professor of economics at Jahangirnagar University, said: “The import of fossil fuels and LNG is a financial burden for the country and is linked to the destruction of life and nature. Renewable energy technology development is cheaper and essential, as fossil-fuel-based power plants are responsible for climate disasters.”

He added, “The previous government prepared this energy master plan using foreign experts, bypassing Bangladeshi experts. The interim government should cancel this master plan from a policy standpoint.”

Meg Fukuzawa, Asia energy finance campaigner at Market Forces, said: “Japanese companies such as Mitsui, JERA, Sumitomo, Mitsubishi, and Japanese banks are involved here. JICA and IEEJ created this master plan.”

She added, “Unproven promises of hydrogen, ammonia, or CCS (carbon capture and storage) for future energy needs are misleading. To achieve 100 percent renewable energy by 2050, Japan must prioritize renewables over fossil fuels.”

Khandaker Golam Moazzem, research director at the Centre for Policy Dialogue, or CPD, said: “We have installed many power plants, and more are planned. What will we do with these? Even the existing ones are not properly managed.”

“The current power plants are sufficient to meet demand. There is no need for new plants. The plan states that 65,000 MW will be needed by 2041 and 90,000 MW by 2050. This is an exaggerated demand projection.”

According to him, only 27,000 MW would be required by 2041 and that no new infrastructure for LNG is necessary.

Moazzem added, “We must begin energy audits, curb corruption in the energy sector, adopt energy-efficient technologies, and transition to renewable energy. Future energy policies must prioritise national interest over individual or corporate gain.”

Moshahida Sultana, associate professor at Dhaka University, commented: “Corporations promoting LNG is a geopolitical issue. The Japanese want to pioneer hydrogen, ammonia, and CCS. They make false promises through technological and knowledge dominance.”

Shafiqul Alam, lead energy analyst for Bangladesh at the Institute for Energy Economics and Financial Analysis, said: “LNG is economically burdensome. We need to reduce import dependence, enhance energy efficiency, and reduce reliance on gas.”

Amanullah Parag, South Asia mobilisation coordinator of 350.org, commented: “There is a ‘clean’ narrative around LNG, which we consider a false promise, like coal-gas to LNG, hydrogen, ammonia, or CCS.”

He concluded, “We must avoid repeating mistakes with LNG. We demand no more false promises from development partners and call for united resistance against these measures.”