Barisal, Sunday, October 20, 2024: A press conference was held today in Barisal, welcoming the government’s decision to cancel the Accelerate Energy LNG terminal project in Payra as part of its efforts to protect the environment, maintain economic balance and realign energy policies in Bangladesh. The terminal was approved under the 'Speedy Supply of Power and Energy (Special Provisions) Act, 2010'. The conference was organized by Prantojon Trust, Forum on Ecology & Development, Coastal Livelihood and Environmental Action Network (CLEAN), and Bangladesh Working Group on Ecology & Development (BWGED).

During the press conference, the organizers stated that the recently canceled LNG terminal project in Payra was owned by Petrobangla and gave principle approval to Accelerate Energy for its construction. The company charged approximately USD 450,000 per day for capacity charges for supplying gas through a floating storage and regasification unit (FSRU) via a pipeline network. The speakers added that two currently active LNG terminals are being operated with daily capacity charges of around USD 450,000, which puts immense pressure on foreign exchange reserves. Additionally, the cost of LNG-based electricity generation is directly tied to gas import expenses, placing an added burden on electricity consumers. When gas import costs increase, the amount the government has to spend on each unit of gas continues to rise, leading to higher electricity costs that will diminish public purchasing power and disrupt the country's economic stability. Furthermore, significant investment would have been required to establish the proposed pipeline and regasification infrastructure by Accelerate Energy. Overall, this expensive approach is not sustainable for the country in the long term.

The speakers at the press conference praised the government's decision as a bold step towards environmental protection and sustainable development. They mentioned, "The cancellation of the plan to establish Accelerate Energy's terminal will safeguard the country's rivers and coastal regions and encourage the implementation of environmentally friendly and sustainable energy policies. The average cost of generating electricity from LNG-based power plants is approximately 57 BDT per unit. Given the current situation, a plan for LNG-based power generation could lead to economic disaster for the country. Although global LNG prices will remain within reach due to surplus supply, it would still be challenging for Bangladesh to afford those prices, potentially leaving LNG capacities underutilized. Therefore, an import-dependent energy policy would not be beneficial for the country."

On behalf of BWGED, Prantojon Trust Executive Director Tauhedul Islam Shahazada stated, "The project, if implemented, could have had a significant negative impact on the environment, particularly threatening the ecosystem, fisheries, and livelihoods of coastal communities in Barishal and the southern region. Thus, the decision to cancel the project is not only for environmental protection but also a positive step towards improving the quality of life for local people."

Another representative from Prantojon Trust said, "This decision marks a significant victory for the environmental protection movement. It demonstrates that the government is capable of making bold decisions prioritizing the environment and the public's interests. "Civil society called on the government to increase investments in environmentally friendly and renewable energy sources, which will help secure and strengthen the energy sector for sustainable development in the country.

The organizing groups expressed gratitude to the government, hoping that such people-centric decisions continue in the future and that environmental protection and energy policies become more robust.

See the Press Release Here