Bangladesh ramps up coal power as LNG supply risks loom

Bangladesh has ordered higher electricity generation from coal-fired power plants to offset potential gas shortages linked to uncertainty over liquefied natural gas (LNG) shipments through the Strait of Hormuz, The Business Standard reported, citing officials.

Energy Secretary Mohammad Saiful Islam said authorities had instructed producers to ramp up coal-based output as a precaution against possible disruption to LNG cargoes, most of which are sourced from the Middle East and shipped via the strait.

Petrobangla is currently supplying 850–900 million cubic feet per day (mmcfd) of gas to the power sector, well below demand of 2,524.9 mmcfd. Officials said supplies could fall by a further 200–250 mmcfd if LNG shipments are delayed, potentially leading to a generation shortfall of up to 1,800 megawatts (MW).

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Coal-fired plants generated 4,095 MW out of total output of 12,454 MW on Monday, according to grid data. Bangladesh Power Development Board Chairman Md Rezaul Karim said coal output is expected to rise to around 5,000 MW, adding that plants have enough coal stocks for about a month of full-capacity operations.

Bangladesh relies mainly on imported coal from Indonesia, enabling it to scale up coal-fired generation when needed.

Officials said coal would be the main buffer if LNG supplies are disrupted for a prolonged period, though load shedding remains possible.

Editing by Reiner Simanjuntak