Nasrul Hamid is involved in the LNG business syndicate

During the tenure of the previous Awami League government, four specific companies were awarded the majority of contracts for importing liquefied natural gas (LNG) from the spot market. Notably, two of these companies continued to receive contracts even after the government’s departure.

Insiders claim that Nasrul Hamid, the former state minister for power, energy, and mineral resources, was the central figure behind the LNG business syndicate that secured these lucrative deals.

According to the energy and mineral resources division, Bangladesh has spent a total of Tk 1.66 trillion on LNG imports (including both government-to-government agreements and spot market purchases) over the past six fiscal years. In the last fiscal year alone, the country spent Tk 426.43 billion on LNG imports.

LNG imports began in Bangladesh in the 2018-19 fiscal year through long-term G2G contracts, with spot market purchases through private entities beginning in 2020. Since then, four companies—Vitol Asia (Singapore), Gunvor (Singapore), TotalEnergies (Switzerland), and Excelerate Energy (United States)—have dominated the LNG supply contracts.

Sources within Petrobangla reveal that Vitol Asia and Gunvor alone supplied over 60% of Bangladesh’s LNG imports. Additionally, insiders have alleged that close associates and family members of Nasrul Hamid have business ties to these companies.

Though Vitol Asia did not secure any new contracts under the interim government, TotalEnergies and Gunvor were awarded two new contracts each in October, totaling four LNG cargoes.

Controversial Companies and Alleged Corruption

The companies involved—Vitol Asia, Gunvor, and TotalEnergies—have been mired in controversy. They began their operations in Bangladesh alongside the country’s LNG import program. While TotalEnergies maintains an office in Dhaka, Vitol and Gunvor operate through a local representative, Ejazur Rahman, who is also linked to OQ Trading, a company involved in LNG imports from QatarEnergy.

Sources allege that Nasrul Hamid played a significant role in facilitating LNG business dealings during his time in the ministry. He served as state minister from 2014 and was in charge of the power, energy, and mineral resources portfolio across three terms. Gunvor, Vitol, and Total have faced legal scrutiny in the past for breaching the US Foreign Corrupt Practices Act. Vitol was fined $130 million in 2013 for securing contracts through bribery in Brazil, Ecuador, and Mexico, while Gunvor was fined $660 million in March 2024 for similar offenses in Ecuador.

Petrobangla has authorized Rupantarita Prakritik Gas Company Limited (RPGCL) to handle LNG imports. Reports indicate that Ejazur’s commercial office is located near Petrobangla’s headquarters in Dhaka. Despite repeated attempts, Ejazur could not be reached for comment on the allegations.

Business Links and Alleged Nepotism

Among the companies involved, Vitol Asia and Gunvor have substantial business dealings with PowerCo International, a Dhaka-based company established in 2019. PowerCo, which claims to supply LNG and LPG, is reportedly associated with Nasrul Hamid’s family. It was co-founded by Md Kamruzzaman Chowdhury, the maternal uncle of Nasrul Hamid. Kamruzzaman was later replaced by Md Murad Hasan, a close associate of Hamid, in 2020. Murad Hasan is also the CEO of Hamid Group, a family-owned conglomerate once managed by Nasrul Hamid himself.

Sources indicate that these individuals, including Kamruzzaman, Nabil Khan (an associate of Hamid), and Murad Hasan, are now in hiding. Despite efforts to contact them for comment, they have remained unreachable.

Vitol Asia, Marubeni Corporation, and PowerCo also formed a consortium to build an LPG terminal in Bangladesh. However, the project has stalled, with no further developments in the past year.

Control Over LNG Imports and Lack of Transparency

Bangladesh has 23 listed companies authorized to import LNG from the spot market, but only a select few—mainly Vitol, Gunvor, Total, and Excelerate—have consistently secured contracts. Insiders suggest that the process was engineered to prevent other companies from participating in tenders, with Nasrul Hamid’s allies reportedly receiving preferential treatment.

According to the energy division, as of October 20, 2024, Bangladesh had procured 74 LNG cargoes from the spot market, with Vitol supplying 30, Gunvor 15, Total 14, and Excelerate Energy 10. Other companies, such as AOT Trading and JERA, participated in several tenders but received only a small share of the contracts.

The apparent monopoly by a few companies has raised concerns about transparency. Geologist Badrul Imam, an energy expert, has criticized the government for prioritizing LNG imports over domestic gas exploration, arguing that some companies may have benefited personally from the import deals.

Suspension of the Impunity Act and Government Response

Despite criticism, the interim government continues to work with the list of 23 companies approved by the previous government under the controversial Speedy Power and Energy Supply (Special) Act, also known as the impunity law. This law allowed LNG purchases without open tenders, making the process opaque and prone to exploitation.

The interim government suspended the law on August 18, 2024, but decided to continue processing existing agreements to avoid further exacerbating the gas crisis. Mohammad Fouzul Kabir Khan, the adviser to the power, energy, and mineral resources ministry, acknowledged the presence of monopolies in the LNG import business and stated that steps were being taken to address this. However, the old list of companies has been approved temporarily to manage the gas crisis.

Experts and anti-corruption advocates, including Transparency International Bangladesh's executive director, Dr. Iftekharuzzman, have called for immediate reform, urging the government to abandon the impunity act and implement open tendering to ensure fair competition in LNG procurement.