LNG power projects to cost Bangladesh $50bn, affecting millions: Report

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 people due to toxic pollution, a new study finds.

The study, jointly conducted by Market Forces, Waterkeepers Bangladesh and Dhoritri Rokhhay Amra (DHORA), was unveiled at a press conference held at the Tafazzal Hossain Manik Miah Auditorium of the National Press Club today. 

Findings of the study suggest 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", 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 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.

Chairing the event, Mujibur Rahman Howladar, former chairman of the National River Protection Commission and Advisory Board member of DHORA, said, "These gas and LNG projects have been established by taking over the resources of the people. Strict actions must be taken against those who have set up these facilities and seized the country's resources to implement these projects; if necessary, criminal charges should be filed." 

Presenting the findings, Asia Energy Analyst at Market Forces Munira Chowdhury 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," she added.

The research reveals $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.

"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," Munira said further.

Mentioning that Bangladesh has an opportunity to power the country into the renewable energy future by installing 240GW of solar power and 30GW of onshore wind, she called on policymakers to redirect funds for the planned LNG projects to renewable energy and grid upgrades.

Sharif Jamil, coordinator of Waterkeepers Bangladesh and member secretary of 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."

Former professor of Economics at Jahangirnagar University 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. 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," he added.

Asia Energy Finance Campaigner at Market Forces 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 prioritise renewable energy over fossil fuels."

Lead Analyst for Bangladesh Energy at the Institute for Energy Economics and Financial Analysis Shafiqul Alam said, "We are under an economic burden due to LNG. We must reduce import dependence, improve energy efficiency, and decrease reliance on gas."