The report also highlights the economic alternatives available to Bangladesh. Instead of investing $36 billion in LNG plants, the money could be used to develop 62 GW of renewable energy, more than double the country’s current total electricity generation capacity.

A new report from Market Forces, Waterkeepers Bangladesh, and Dhoritri Rokhhay Amra (DHORA) has raised alarm over the economic, environmental, and social consequences of Bangladesh’s expanding reliance on liquefied natural gas (LNG) for power generation. The report, titled Expensive LNG Expansion, estimates that the proposed LNG power projects and import terminals will cost the country a staggering $50 billion, threatening the health of millions of Bangladeshis while exacerbating climate change risks such as devastating floods and cyclones.

The report’s findings suggest that the plans to build 41 new LNG power plants with a total capacity of 37.4 gigawatts (GW) – more than the country’s entire existing power generation capacity – will not only be a big burden on Bangladesh’s economy but will also perpetuate the nation’s dependence on toxic fossil fuels. This dependence is expected to worsen air pollution, which already makes Bangladesh one of the most polluted countries in the world.

“Unethical foreign companies are forcing Bangladesh into a dangerous addiction to toxic liquefied natural gas, harming the health of millions of people and the planet,” said Munira Chowdhury, Asia Energy Analyst at Market Forces and one of the report’s authors. “The people of Bangladesh deserve clean, reliable, renewable energy and breathable air, not dirty fossil gas.”

The proposed LNG expansion is projected to cost $36 billion to build the power plants and an additional $14 billion for LNG import terminals. Once operational, the country will also face ongoing costs of $7-11 billion annually to import LNG by 2041. This represents two to three times the current cost of all fossil fuel imports in Bangladesh.

Economically Unsound

According to the analysis, the new LNG power plants could release a staggering 1.3 billion tonnes of carbon dioxide equivalent (CO2-e) over their lifetimes – six times Bangladesh’s current annual emissions. The long-term environmental costs extend beyond air pollution. The construction of these plants threatens local ecosystems, including the habitats of 26 threatened species, such as the Asian elephant, Clouded Leopard, and the Chinese Pangolin, all of which rely on the forests in Chattogram, where many of the projects are planned.

Sharif Jamil, Coordinator of Waterkeepers Bangladesh and a member of DHORA, emphasized the danger of continuing with this LNG-heavy energy plan, which was devised by Japan’s International Cooperation Agency (JICA) and the Institute of Energy Economics Japan (IEEJ). Sharif Jamil says, “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.”

“These proposed LNG projects are not only economically unsound but also devastating for our precious ecosystems and environmental biodiversity that millions of people rely on for their livelihoods. Renewable energy like solar and wind is the way forward for a safe future for Bangladesh. While Japanese entities have investment in the power sector, formation of related national policy by JICA is a serious Conflict of Interest.”

Untold Harm

The report also highlights the economic alternatives available to Bangladesh. Instead of investing $36 billion in LNG plants, the money could be used to develop 62 GW of renewable energy, more than double the country’s current total electricity generation capacity. Bangladesh is blessed with immense potential for renewable energy, with the capacity to install up to 240 GW of solar power and 30 GW of onshore wind energy.

“Bangladesh has an opportunity to power the country into the renewable energy future by installing 240 GW of solar power and 30 GW of onshore wind,” said Chowdhury. “We urge policymakers to redirect funds for the planned LNG projects to renewable energy and grid upgrades.”

The report also calls out the role of foreign companies, particularly from Japan and the United States, in driving the LNG expansion in Bangladesh. It 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. These foreign interests, according to the authors, are putting profit over people’s health and the country’s future sustainability.

Livelihood of Millions

Bangladesh’s vulnerability to extreme weather events, such as the increasingly frequent heatwaves, makes the country’s energy needs more pressing. As temperatures rise and demand for power surges, the LNG projects would only further strain the country’s resources, driving up energy costs for consumers already facing high electricity bills.

The report concludes with a call to action for policymakers to shift focus towards clean, renewable energy solutions, which offer a more sustainable, affordable, and climate-resilient future for Bangladesh.

Says Sharif Jamil, “These proposed LNG projects are not only economically unsound but also devastating for our precious ecosystems and environmental biodiversity that millions of people rely on for their livelihoods. Renewable energy like solar and wind is the way forward for a safe future for Bangladesh. While Japanese entities have investment in the power sector, formation of related national policy by JICA is a serious Conflict of Interest.”

The report conveys the message that the proposed LNG projects represent not only an economic burden but also a significant threat to Bangladesh’s environmental and social fabric.