Bangladesh gas crisis deepens as terminal fire cuts supply by half
Bangladesh is grappling with a severe energy crisis following a fire at a floating Liquefied Natural Gas (LNG) terminal, a disruption that has exacerbated long-standing supply shortages across the nation. The incident, which occurred Tuesday at an Excelerate Energy-operated terminal in Maheshkhali, has slashed the country’s natural gas supply to 2.2 billion cubic feet per day, down from an already strained daily average of 2.7 billion.
According to state-owned Petrobangla, the country requires approximately 3.8 billion cubic feet of gas daily to meet full demand, with 3 billion typically sufficient to maintain essential services. The loss of one of the two floating terminals has halved LNG contributions, which usually account for 35% to 40% of the national supply. As the damaged terminal undergoes repairs—with technical teams from the UK and the United Arab Emirates currently on-site—officials are scrambling to restore operations, hoping that the repair of one of the terminal's two boilers will allow for a partial recovery in supply.
The impact of the shortage has been immediate and widespread. Residents across Dhaka and surrounding regions report persistent low pressure or total outages, forcing many to rely on expensive LPG cylinders or electric stoves. Titas Gas Transmission and Distribution, which serves over 2.7 million residential customers, has issued a public apology, warning that service will remain intermittent until the supply stabilizes. Meanwhile, CNG-powered vehicles face long queues at filling stations, with many operators forced to suspend service entirely due to insufficient pressure.
The industrial sector, already burdened by chronic energy insecurity, reports critical operational disruptions. Textile manufacturers note that gas pressure has dropped to levels insufficient to run essential generators, forcing some factories to stall production or rely on costly, inefficient alternatives. Bangladesh Textile Mills Association (BTMA) director Khorshed Alam indicated that many facilities are operating at significantly reduced capacity, struggling to maintain output under current constraints.
Power generation has also suffered, with gas-fired electricity output falling from over 5,000 megawatts to 4,000 megawatts. While heavy rains have lowered overall electricity demand, the Power Development Board (PDB) warns that the reliance on more expensive liquid fuels to compensate for the gas deficit will place further strain on government subsidies and exacerbate financial losses.
Energy experts and advocacy groups, including the Consumers Association of Bangladesh (CAB), have long cautioned against over-reliance on imported LNG, noting that price volatility and infrastructure vulnerability leave the national grid susceptible to such shocks. While the government has outlined plans to increase domestic exploration and diversify supply sources, analysts warn that these structural remedies will take years to materialize. For now, the nation remains caught in a precarious cycle of import dependency, with little prospect for immediate relief from the current energy constraints.
