Chinese Firms Seek to Set Up Lithium and Solar Production in BD

On November 21, 2024, the Advisers' Council Committee on Government Purchase approved multiple procurement proposals to meet the country's growing demand for LNG, fertilizers, and rice. The finance adviser presided over the meeting at the Bangladesh Secretariat. Two LNG cargoes will be imported from Singapore-based M/S Vitol Asia Pte Ltd, costing Tk 6.863 billion and Tk 6.802 billion, with per-MMBtu prices of $14.55 and $14.42, respectively.

The Centre for Policy Dialogue (CPD) introduced an Artificial Neural Network (ANN)-based model for fuel pricing on November 21, 2024, aimed at reducing costs by up to Tk 15 per litre through improved transparency, stopping pilferage, and adjusting taxes. The CPD study highlighted flaws in the automated pricing mechanism introduced in March 2024, citing lack of transparency and vulnerability to exchange-rate fluctuations.

Chinese businesses are considering relocating to Bangladesh to avoid US tariffs, according to Calvin Nyan, president of the Overseas Chinese Association. However, challenges like complex export-import procedures and political instability are hindering investment.

On November 20, Bangladesh's Advisory Council approved a draft ordinance to repeal the "Quick Enhancement of Electricity and Energy Supply (Special Provision) Act, 2010," criticized for its indemnity provisions.

On November 20, 2024, the Energy and Mineral Resources Division requested the Planning Ministry to exempt five crucial gas exploration and development projects from the mandatory third-party feasibility study requirement. The government argues that this move would expedite gas exploration, reducing reliance on imported liquefied natural gas (LNG).

Brunei has proposed exporting 12-18 LNG cargoes annually to Bangladesh under a 10-year government-to-government (G-to-G) contract, with an option to extend for five years. Each cargo will measure around 3,100,000-3,200,000 MMBtu, priced at JKM+0.87 USD per MMBtu. Bangladesh’s state-owned Petrobangla and Brunei's BEST are leading the negotiations.