"As Bangladesh navigates its energy challenges, reliance on non-renewable fuels shapes a crucial narrative in its power trajectory. In the complex interplay of energy demands and environmental considerations, the exploration of non-renewable sources heralds a critical juncture for the nation's energy future."
Natural Gas, the predominant fossil fuel in Bangladesh, finds extensive application in power generation, cooking, and industrial processes. The nation possesses over 26 discovered gas fields, including several offshore blocks in the Bay of Bengal. Responsible for exploration, the Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) oversees the pursuit of new gas reserves. A comprehensive network of pipelines facilitates the transportation of gas from production fields to end consumers.
In its annual report for 2021–2022, the Ministry of Power, Energy, and Mineral Resources stated that Bangladesh possesses a substantial natural gas reservoir, valued at 40.09 trillion cubic feet (TCF). The recovery of only 10.42 TCF raises doubts about the usefulness of this resource. This emphasizes how critical it is to manage and explore carefully given the restricted time. Bangladesh generates 2,978 million cubic feet (MMcfd) of natural gas per day on average. In addition to the 240.56 BCF of LNG that was imported, 842.01 billion cubic feet (BCF) of natural gas were generated in the fiscal year 2021–2022. An explanation of the uses for this gas is provided below: 40% is used to generate electricity, 6% is used to produce fertilizer, 18% is used to generate captive power, 19% is used for industrial purposes, 13% is used for residential consumption, 4% is used to generate compressed natural gas (CNG) for automobiles, and 1% is used for other purposes like tea estates and commercial activities. Bangladesh's natural gas consumption is currently expected to be 3,508 MMscfd, but the country's supply, including both domestic production and imported LNG, is currently merely 2,978 MMscfd. There is a noticeable 530 MMscfd shortage as a result. Natural gas demand is expected to grow about 4,622 MMscfd by 2030, underscoring the critical need of resource management and strategic planning to meet future demand for energy.
Ten percent of Bangladesh's commercial energy supply is comprised of petroleum products, such as gasoline, diesel, furnace oil, and octane. The country primarily imports 1.31 million metric tons of crude oil and 4.3 million metric tons of refined petroleum products annually to meet its demand for liquid fuel. The only domestically produced liquid fuel is gas condensate, which is generated in quantities of about 0.35 million metric tons per year and is mostly fractionated into gasoline, diesel, and kerosene. The transportation sector is the greatest user of liquid petroleum in Bangladesh, accounting for 62% of total consumption. Following the electricity sector (13%) are the industrial (5%), household use (1%), agriculture (17%), and other sectors such as commercial operations (2%). The petroleum products market in Bangladesh is growing by two to four percent a year. If current trends continue, it is estimated that the demand would reach over 15 million tons by 2030. To meet its needs, Bangladesh mostly imports oil from Saudi Arabia and the United Arab Emirates, with prices determined by the global market rates on the day of shipment. Crude oil is provided by Saudi Aramco of Saudi Arabia and ADNOC of the United Arab Emirates, while finished commodities are supplied by thirteen different National Oil Companies (NOCs) across the globe.
In total, 488,724 metric tons (MT) of coal were extracted by Bangladesh in the fiscal year 2021–2022, with an additional 6,140,305 MT imported. This resulted in an annual coal usage of almost 6.63 million MT.
According to the Ministry of Power, Energy, and Mineral Resources' annual report for 2021–2022, as of June 2022, 14,782 MW was the largest quantity of power generated. This discrepancy from the installed capacity of 25,700 MW is most likely due to a fuel scarcity. 22,482 MW of the 25,700 MW of installed power generation capacity are from on-grid sources, with the remaining 25,700 MW coming from off-grid sources.
Organizations in the public and private sectors own 44% and 45% of the generating capacity, respectively. Five percent of the capacity comes from imports, and the remaining six percent comes from joint partnerships. Throughout the country, 153 power plants provide energy to 43.10 million people.
The breakdown of power generation by fuel type is as follows:
In the fiscal year 2021-22, 62.17% of the total electricity was generated from domestic fuels such as natural gas, coal, and hydro. Imported petroleum fuels, including diesel and furnace oil, contributed 28.44%, while 9.01% was imported electricity from India through cross-border energy trade.
The power consumption across different sectors is as follows:
This distribution shows how heavily dependent on household consumption is, with commercial and industrial usage coming in second and third, respectively, with other sectors accounting for a lesser share of overall consumption.
The future trajectory of fuel reserves in Bangladesh stands as a subject of profound concern, particularly in the context of the country's depleting natural gas reserves, which have historically served as a pivotal energy source. Considering the average daily production of 7300 million cubic feet of gas, the state minister for Power and Energy, Nasrul Hamid, articulated in November 2022 that the remaining gas could sustain usage for approximately 10.8 years. In response to this impending challenge, Bangladesh has initiated the importation of liquefied natural gas (LNG) since late 2018 as a measure to partially offset the anticipated shortfall in gas supply. However, it is noteworthy that LNG, while addressing the supply deficit, incurs higher costs, amounting to three times more than locally sourced gas. The gradual ascendancy of LNG is anticipated to become the predominant mode of supply in Bangladesh's energy landscape.
In light of this situation, there arises a compelling imperative to explore alternative energy sources and enhance overall energy efficiency. The government of Bangladesh is contemplating an augmentation of local gas exploration activities to mitigate dependence on imported fossil fuels. These endeavors, however, necessitate substantial investment and meticulous management to secure a sustainable energy future for the nation. Consequently, the decision to construct the Rooppur Nuclear Power Plant (RNPP) in Bangladesh stems from a convergence of economic and strategic considerations.
Despite potential misconceptions, it is crucial to recognize that nuclear energy, unlike renewable sources, relies on finite resources such as fissile material, specifically uranium. Although the Earth harbors a significant quantity of uranium, its natural replenishment rate is insufficient to sustain long-term energy production. Nuclear fuel, while possessing high energy density and efficient electricity generation capabilities with minimal greenhouse gas emissions, remains dependent on finite resources.
Against the backdrop of Bangladesh's rapid economic growth, resulting in a surge in electricity demand, the RNPP is poised to play a pivotal role. With a projected capacity of 2.4 gigawatts electric (GWe), it aims to fulfill approximately 10% of the nation's electricity needs, contributing significantly to the ongoing efforts to address the expanding power deficit. The 2021 Power System Master Plan outlines Bangladesh's ambitious goal to achieve a 40 GWe capacity by the year 2030, with the RNPP serving as a crucial milestone toward realizing this target.
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