Bangladesh Boosts Indian Power Imports as Gas Shortage Hits Electricity Generation

Bangladesh is boosting electricity imports from India and increasing output from fuel oil-fired plants to meet rising power demand, as the country grapples with limited gas supply and maintenance outages at coal-based facilities, Reuters reported. Industry officials and analysts said the adjustments highlight the challenges facing Bangladesh’s energy sector in balancing cost effectiveness and supply security.

Rising Power Imports from India

Government data showed that power imports, mainly from an Adani Power-run coal-fired plant in eastern India, rose 70% in the seven months through July. The imports satisfied much of the increased demand, lifting their share of the country’s total electricity supply to 15.4% from 9.5% a year earlier.

Strain on Natural Gas Supply

Natural gas accounted for about two-thirds of Bangladesh’s power demand in the decade to 2020. But infrastructure challenges and supply constraints are limiting output. A senior official of the Bangladesh Power Development Board (BPDB) said many gas-fired plants were not running at capacity because of pressure-related technical problems.

Fuel Oil Steps In

The shortage has pushed up the role of fuel oil in power generation. Government figures showed its share increased to 12.6% from 11.9%. Adeeba Aziz Khan, director of Bangladesh’s Summit Power, which runs a dozen gas and fuel oil plants, said: “It’s about cost effectiveness, and gas is required for the fertiliser industry, whereas cheap electricity can be received from other sources, including fuel oil.”

“There is a shortage of gas for electricity generation and evacuation problems,” Khan added on the sidelines of the APPEC conference. She also noted it was difficult to see a resurgence in gas-fired generation in the “foreseeable future.”

Coal and LNG Adjustments

Coal-fired power output fell to 26.2% from 30.1% due to maintenance outages. Meanwhile, Bangladesh increased imports of liquefied natural gas (LNG) by 24% in the seven months through July, according to analytics firm Kpler. Still, government data showed gas-fired power generation slipped 1.2%.

“When power demand started increasing since March, they had to increase imports and fuel oil-based power generation,” said Shafiqul Alam, a Bangladesh-based analyst at the Institute for Energy Economics and Financial Analysis.

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Conclusion

Bangladesh’s power mix is shifting as supply pressures reshape generation choices. With gas supply under strain and coal output curtailed, the country is leaning more on Indian imports and fuel oil despite cost considerations. Many expect this reliance to persist, as the outlook for gas-fired generation remains uncertain.

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