Bangladesh Faces LNG Shortage Amid Cancellation of 31 Renewable Projects
Bangladesh's LNG supply from Qatar has been suspended due to attacks, exacerbating load shedding. The cancellation of 31 renewable energy projects totaling 3,300 MW capacity, initiated by the Yunus government in September 2024, has hindered electricity generation. Although the government sought lower tariff bids, only 900 MW was secured from new tenders. The cancellations could have replaced $820 million in fossil fuel imports and provided 10,000 jobs. Bangladesh aims for 15% renewable energy by 2030, but current levels are only 3%.
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Qatar's suspension of LNG production affects Bangladesh's fuel supply, leading to increased load shedding. The Yunus government canceled 31 renewable projects totaling 3,300 MW capacity in September 2024, shortly after taking office, which could have alleviated the LNG shortfall.
These projects were criticized for their cancellation, and the High Court ruled in favor of their initial agreements. The government later opened tenders for over 5,000 MW of renewable energy but secured only 900 MW due to weak participation.
The canceled projects could have reduced fossil fuel imports by $820 million and created 10,000 jobs. Bangladesh's renewable energy target is 15% by 2030, but it currently stands at around 3%.
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