Gas supply crisis worsens in Bangladesh as Excelerate Energy terminal operations cease due to LNG shortages
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Gas supply across Bangladesh has plummeted as the Excelerate Energy terminal ceased operations on Wednesday afternoon, exacerbating a severe energy shortage that has persisted for 25 days. The shutdown occurred due to a lack of available Liquefied Natural Gas (LNG) cargo, leaving the facility unable to resume deliveries despite its readiness to operate.
The crisis stems from delays in incoming shipments, specifically those procured through direct purchase methods. Although four LNG cargoes were scheduled for delivery this month under an expedited procurement process initiated by Petrobangla, none have arrived. Officials from Petrobangla and its subsidiary, Rupantarita Prakritik Gas Company Limited (RPGCL), confirmed that the absence of stock has rendered the terminal non-operational.
The country relies on two floating storage and regasification units located at Maheshkhali in Cox’s Bazar: one operated by the U.S.-based firm Excelerate Energy and the other by the domestic company Summit Group. The Excelerate terminal had been offline following a fire accident on July 21. While the facility resumed partial operations last Saturday, it relied on existing reserves that were quickly depleted. Supply from this terminal began declining on Monday before coming to a complete halt today.
The impact on national supply is significant. Bangladesh requires approximately 3.8 billion cubic feet of gas daily, though the grid typically manages with 2.7 billion cubic feet, of which 1.05 billion is provided by LNG terminals. With the Excelerate terminal offline, total gas supply dropped to 2.18 billion cubic feet on Wednesday, down from 2.28 billion cubic feet on Monday. LNG-specific contributions to the national grid fell from 660 million cubic feet yesterday to 550 million cubic feet today.
Relief may remain distant, as current projections indicate the supply shortfall will persist. A new cargo is expected to arrive on Thursday, but it is slated for the Summit terminal, which has a capacity of 500 million cubic feet per day compared to Excelerate’s 600 million. Sources indicate that a cargo for the Excelerate terminal is not expected until August 23 or 24, suggesting that the facility will remain idle for the coming days, leaving the national gas deficit unresolved.
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