The World Bank has paired up with Bangladesh to help it import expensive global LNG.
Bangladesh’s energy regulator has raised the gas tariff for new industries and captive power plants, in spite of pushback from businesses and rights groups.
As the Asian Development Bank’s annual meeting unfolds this week in Milan, there are calls for the bank to stop financing fossil fuels in Bangladesh.
State-run Petrobangla sent letters to all the concerned companies in India and Bangladesh over the cancelled negotiations.
Bangladesh’s interim government has already scrapped several Petrobangla LNG deals, sources told Gas Outlook.
Bangladesh’s over-reliance on fossil fuel imports will escalate further if dozens of renewable project PPAs are not signed quickly with the BPDB, sources say.
Major changes made by Bangladesh’s new interim government have put at risk several multi-billion dollar energy deals and projects that were in the pipeline.
Since late May when Cyclone Remal hit, some of Bangladesh’s key LNG facilities have been out of operation.
Indian gas consumption has catapulted to its highest-ever level and is projected to increase by over 7% this year.
India is set to become the first country in the world to export LNG in re-gasified form through cross-country pipelines as GAIL and H-Energy close in on Bangladesh supply deals.