Dhaka, Saturday, November 9, 2024: A new report jointly released by Market Forces, Waterkeepers Bangladesh, and Dhoritri Rokhhay Amra (DHORA) finds that Bangladesh’s planned liquified natural gas (LNG) power projects and import terminals will cost the economy a staggering US$50 billion. This investment poses significant risks to public health and the environment, with the potential to exacerbate climate-induced disasters like floods and cyclones.
The report, titled “Expensive LNG Expansion”, was presented during a press conference at the Tafazzal Hossain Manik Miah Auditorium, National Press Club. The event was chaired by Dr. Mujibur Rahman Howladar, former Chairman of the National River Protection Commission, and moderated by Sharif Jamil, Coordinator of Waterkeepers Bangladesh and Member Secretary of DHORA.
Foreign LNG Projects: Economic and Environmental Impacts
The report exposes the detrimental impact of LNG investments on Bangladesh’s economy and environment. It highlights how foreign interests, including major corporations like US-based GE Vernova and Japan’s JERA, are accelerating LNG expansion in the country, potentially jeopardizing the health of millions of Bangladeshis due to toxic emissions. The plan to develop 41 new LNG power plants is set to further degrade air quality, making Bangladesh one of the most polluted countries in the world.
Munira Chowdhury, Asia Energy Analyst at Market Forces and one of the report’s authors, emphasized, “Foreign corporations are pushing Bangladesh into a toxic addiction to LNG, endangering millions of lives. The people deserve clean, renewable energy and breathable air, not dirty fossil gas.”
Key Findings of the Report
- Bangladesh’s proposed US$50 billion LNG projects include building import terminals and 41 new LNG power plants, surpassing the country’s current electricity generation capacity.
- The analysis suggests that the US$36 billion allocated for power plants could be redirected to create 62 GW of renewable energy, more than double the current electricity capacity.
- Importing LNG is projected to cost Bangladesh between $7-11 billion annually, further straining the country’s finances.
- Instead of LNG, Bangladesh could transition to a renewable energy future with the potential for 240 GW of solar power and 30 GW of onshore wind, transforming the nation into a clean energy leader.
Call for Policy Reform and Accountability
Professor Anu Muhammad, a prominent economist, argued that the energy sector’s over-reliance on imported LNG is economically unsustainable. He urged policymakers to abandon foreign-driven energy plans and prioritize national interests. “The energy master plan was crafted by foreign entities without adequate consultation with Bangladeshi experts. It must be canceled in favor of homegrown solutions that align with the nation’s real needs.”
Dr. Khandaker Golam Moazzem, Research Director at the Center for Policy Dialogue, criticized the overestimation of future power demands, which the current government plans to expand to 65,000 MW by 2041 and 90,000 MW by 2050. He emphasized, “Realistically, the country would not require more than 27,000 MW by 2041. It’s time to conduct energy audits, curb corruption, and focus on energy efficiency.”
Conflict of Interest in Energy Planning
The report raises concerns over Japan International Cooperation Agency (JICA) and the Institute of Energy Economics Japan (IEEJ) drafting Bangladesh’s energy master plan. Sharif Jamil highlighted that this poses a significant conflict of interest, given Japan’s vested interests in LNG and fossil fuel projects in the country.
“Japan’s corporations like Mitsui, Sumitomo, and Mitsubishi are aggressively promoting LNG, despite it being economically and environmentally unsustainable,” stated Megu Fukuzawa, Asia Energy Finance Campaigner at Market Forces.
Dr. Mujibur Rahman Howladar called for accountability and possible legal action against those involved in setting up these projects without considering the public’s interest. “Our movement will continue until these demands are addressed by the interim government.”
Transitioning to a Sustainable Future
The report concludes by urging policymakers to shift investments from fossil fuels to renewable energy sources, ensuring a cleaner and more sustainable future for Bangladesh. It calls on international financiers, particularly from Japan, to support Bangladesh’s transition to renewables rather than locking the country into decades of dependence on fossil fuels.
Shafiqul Alam, an energy analyst, warned, “Continuing with LNG projects not only burdens the economy but also jeopardizes the country’s climate commitments. We need to reduce gas imports, improve energy efficiency, and focus on renewables.”
Amanullah Porag, South Asia Mobilization Coordinator at 350.org, emphasized collective resistance against the false promises of LNG. “We need to resist these projects that threaten our environment and our future.”