Natural Gas Supplies Rise With Industrial Sector Given Top Priority As Power Outages Ease
Natural Gas Supplies Rise With Industrial Sector Given Top Priority As Power Outages Ease
Natural gas supply across Bangladesh has risen following a directive from the prime minister to prioritize the industrial sector, ending a shortage that lasted for more than a month. The increased supply took effect on Monday night and saw further increments on Tuesday, according to Petrobangla officials.
Petrobangla and its subsidiary Rupantarita Prakritik Gas Company Limited, which oversees and imports liquefied natural gas respectively, attribute the previous delivery delays to a fire at a floating terminal and Middle Eastern conflicts that delayed scheduled LNG cargoes. While national gas demand stands at 3.8 billion cubic feet per day, the country typically manages operations with a supply of 2.65 to 2.7 billion cubic feet. On Monday night, LNG supply reached 980 million cubic feet, which rose to 1.01 billion cubic feet by Tuesday night, bringing total gas supply to 2.63 billion cubic feet, including 1.62 billion cubic feet from domestic gas fields.
Supply disruptions initially began after a fire on July 21 at an Excelerate Energy floating terminal in Maheshkhali. Prior to the incident, daily supply stood at 2.64 billion cubic feet, with LNG contributing 990 million cubic feet. Although current LNG contributions have returned to similar levels, domestic gas production has dropped by 40 million cubic feet.
To sustain the momentum, Petrobangla and Rupantarita Prakritik Gas Company Limited have planned 10 LNG cargo imports for September. Despite multiple tenders, nine cargoes have been secured through long-term agreements with Gunvor and Saudi Aramco, alongside spot market purchases. Shipments have already arrived from Aramco, British Petroleum, and Posco, with additional cargoes scheduled from Gunvor, Aramco, and TotalEnergies throughout the month. Furthermore, procurement for October is underway, with eight out of 11 planned cargoes secured and tenders for the remaining three issued.
Despite the marginal overall increase, industrial users report that pressures remain below optimal levels. Syed Imtiaz Rajib, general manager of Fakir Knitwears Limited in Fatullah, Narayanganj, noted that gas pressure remains at 4 pounds per square inch instead of the required 10 pounds per square inch, though it represents a slight improvement. Amzad Hossain, president of the Narayanganj Dyeing Owners Association, added that factories have yet to receive the necessary pressure required for full operations.
Meanwhile, nationwide power load-shedding has decreased slightly, though persistent outages continue due to coal shortages and technical faults at major power plants. Authorities previously attempted to offset deficits by increasing oil-fired generation, but furnace oil constraints limited output. Generation from oil is expected to increase after September 20.
Power generation was further impacted when a technical glitch shut down a unit of the Adani power plant last Wednesday, intensifying load-shedding. However, Adani's second unit resumed supply on Sunday, currently delivering over 1,400 megawatt hours during peak hours. Concurrently, a unit at the Rampal power plant in Bagerhat experienced a shutdown on Sunday, producing 610 megawatts yesterday, with full restoration expected in two days.
In Patuakhali, one unit of the Payra coal-fired power plant remains offline due to technical reasons, yielding 570 megawatts despite adequate coal reserves, while a neighboring joint-venture plant produced over 1,000 megawatts following an increase in coal supplies. According to the Bangladesh Power Development Board and Power Grid Company of Bangladesh, total load-shedding reached over 2,500 megawatts on Monday night and peaked near 2,000 megawatts during the day, down from highs exceeding 3,500 megawatts last month.
