LNG projects to cost Bangladesh $50b

A report by Market Forces, Waterkeepers Bangladesh, and Dhoritri Rokkhay Amra (DHORA) reveals that the development of new liquefied natural gas (LNG) power projects and import terminals could cost the Bangladesh economy an estimated US$50 billion, reports UNB.

The report also warns that these projects pose significant risks to the health and safety of millions of Bangladeshis, exacerbating toxic pollution and contributing to the intensification of climate-related disasters, such as floods and cyclones.

The report was revealed in a press conference held at Jatiya Press Club on Saturday. It was chaired by Dr Mujibur Rahman Howladar, former Chairman of the National River Protection Commission and Advisory Board Member of DHORA and moderated by Sharif Jamil, Member Secretary of DHORA and Coordinator of Waterkeepers Bangladesh.

Munira Chowdhury, Asia Energy Analyst at Market Forces, presented the report.

Key speakers include Prof Anu Muhammad, former Economics faculty at Jahangirnagar University, Research Director at the Center for Policy Dialogue (CPD) Dr Khandaker Golam Moazzem, Associate Professor at Dhaka University Moshahida Sultana, Megu Fukuzawa, Asia Energy Finance Campaigner at Market Forces, Lead Analyst for Bangladesh Energy at the Institute for Energy Economics and Financial Analysis Shafiqul Alam, and Amanullah Parag, South Asia Mobilization Coordinator for 350.org.

The new analysis also finds that as the country faces severe heatwaves and the demand for power soars, of the US$50 billion to be invested in the harmful LNG industry, US$36 billion spent on power plants could instead be used to make Bangladesh a clean energy powerhouse, by enabling 62 Gigawatts of renewable power, over two times the country's current total electricity generation capacity.

The new report - Expensive LNG Expansion - reveals how foreign interests including some of the world's biggest companies, such as US firm GE Vernova and Japan's JERA, are doubling down on LNG expansion in Bangladesh, threatening untold harm to the climate and communities.

Bangladesh's import-based and LNG-heavy energy master plan was written by a Japanese government agency, Japan International Cooperation Agency (JICA) and energy think tank Institute of Energy Economics Japan (IEEJ).

The analysis finds a staggering 41 proposed new gas power plants would spew toxic emissions worsening respiratory health, maintaining Bangladesh's status as the country with the worst air quality in the world.

Dr Muzibur Rahman said these gas and LNG projects have been established by taking over the resources of our people and strict actions must be taken against those who have set up these facilities and seized our resources to implement these projects; if necessary, criminal charges should be filed.

"We must demand accountability from them. We do not want any projects that harm the public. Instead of relying on assumptions, investments should be made according to our actual needs. Our movement will continue with sustained dialogue with the interim government until these demands are incorporated into government policy," he said.

Munira Chowdhury, Asia Energy Analyst and report author, Market Forces said unethical foreign companies are forcing Bangladesh into a dangerous addiction to toxic liquified natural gas, harming the health of millions of people and the planet.

"The people of Bangladesh deserve clean, reliable, renewable energy and breathable air, not dirty fossil gas. Japanese corporations and financiers have a golden opportunity to support Bangladesh's renewable energy transition and grid modernisation."

"Our research reveals US$50 billion plans include building LNG import terminals and 41 new LNG power plants with a total capacity of more than the country's entire existing power fleet," Munira said, adding that, "On top of the crippling costs of building the LNG power plants, Bangladesh would face the burden of importing the gas that would cost $7-11 billion per year."

Bangladesh has an opportunity to power the country into the renewable energy future by installing 240 GW of solar power and 30 GW of onshore wind. "We urge policymakers to redirect funds for the planned LNG projects to renewable energy and grid upgrades."

Sharif Jamil, Coordinator, Waterkeepers Bangladesh and Member Secretary, DHORA said: "The Integrated Energy and Power Master Plan (IEPMP) made by Japanese government agency JICA and energy think tank IEEJ must be revised, as it is pushing Bangladesh into LNG dependence that seriously risks energy security of the nation."

Prof Anu Muhammad said the import of fossil fuels and LNG poses a financial burden for the country and is associated with the destruction of life and nature.

He said the energy sector's planning was done during the previous government's tenure, influenced by policies from international entities like the World Bank, ADB, and transnational capital.

Megu Fukuzawa said Japanese companies are involved here. Mitsui, JERA, Sumitomo, and Mitsubishi, as well as Japanese banks, are connected to this project.

JICA and IEEJ have prepared this master plan. For future energy needs, hydrogen, ammonia and CCS are unproven and false solutions. To reach 100% renewable energy by 2050, the Japanese government must prioritize renewable energy over fossil fuels."

Dr Moazzem said so many power plants have been established, and more are being planned-what are we going to do with them? Proper arrangements are lacking even for existing plants, which can meet the demand.

"We don't need new infrastructure for LNG. We must start conducting energy audits, curb corruption in the energy sector, and use energy-efficient technology while transitioning to renewable energy. Future energy policy should align with national interests rather than individual or corporate interests."