Report: LNG projects to cost Bangladesh $50bn and sustainable future

A Market Forces, Waterkeepers Bangladesh and Dhoritri Rokhhay Amra (Dhora) report finds that new liquified natural gas (LNG) power projects and import terminals will cost the Bangladesh economy $50 billion, threatening the safety and health of millions of Bangladeshis due to toxic pollution and worsening climate disasters, such as floods and cyclones.

The report was released at a press conference held at National Press Club. 

The press conference was chaired by 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 included 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 analysis also found that as the country faces brutal heatwaves and demand for power soars, of the $50 billion to be invested in the harmful LNG industry, $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 report titled “Expensive LNG Expansion” revealed 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 new 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.

Mujibur Rahman Howladar stated: "These gas and LNG projects have been established by taking over the resources of our people. 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."

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 modernization.”

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.”

“These proposed LNG projects are not only economically unsound but also devastating for our precious ecosystems and environmental biodiversity that millions of people rely on for their livelihoods. Renewable energy like solar and wind is the way forward for a safe future for Bangladesh. While Japanese entities have investment in the power sector, formation of related national policy by Jica is a serious Conflict of Interest.”

Professor Anu Muhammad, former professor of Economics at Jahangirnagar University, stated: "The import of fossil fuels and LNG poses a financial burden for the country and is associated with the destruction of life and nature. 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. The energy plan formulated by the previous government was not necessary. In contrast, the technological development of renewable energy is more affordable. Fossil fuel-based power plants are responsible for climate disasters. The energy master plan was created with foreign experts, excluding Bangladeshi experts. The interim government should cancel this master plan on principled grounds. Without reforming policies like the PSC, a just and equitable Bangladesh cannot be established. Therefore, we must adopt Bangladeshi plans and abandon all plans prepared by foreign experts."

Megu Fukuzawa stated: "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. Khondaker Golam Moazzem commented, "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. There is no need for new power plants. The plan states that we will need 65,000 MW by 2041 and 90,000 MW by 2050. This is an exaggerated demand; realistically, we won’t need more than 27,000 MW by 2041. 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."

Moshahida Sultana explained: "Corporations promoting LNG is a geopolitical issue. The Japanese aim to promote hydrogen and ammonia as they want to be pioneers in this sector. They are pushing these false solutions—hydrogen, ammonia, and CCS—through dominance in technology and knowledge."

Shafiqul Alam stated: "We are under an economic burden due to LNG. We must reduce import dependence, improve energy efficiency, and decrease reliance on gas."

Amanullah Porag said: "The narrative that LNG/CNG is very clean has been presented to us. We believe that transitioning from coal and gas to LNG, hydrogen, ammonia, or CCS are false promises. We should not make any further mistakes in exposing LNG. We do not want any false promises from development partners, and there must be collective resistance to prevent these."