Bangladesh LNG terminal failure deepens energy crisis, supply crashes to 1,930 mmcfd
Synopsis
Key Takeaways
Bangladesh's worsening energy crisis entered its fourth consecutive week on 14 August after one of the country's two Floating Storage and Regasification Units (FSRUs) ran out of gas on Thursday evening, causing LNG supplies to the national grid to plunge below 300 mmcfd from the usual 1,000 mmcfd delivered by both terminals combined, according to Petrobangla officials. Total gas supply has consequently fallen to approximately 1,930 mmcfd against a daily national demand of 3,800 mmcfd — a deficit of nearly 50 per cent.
Scale of the Supply Collapse
The two FSRUs that anchor Bangladesh's imported gas supply were together expected to deliver around 1,000 mmcfd to the grid. With one terminal now offline, that contribution has dropped below 300 mmcfd, according to Petrobangla officials cited in local media. The cumulative shortfall has pushed the national gas supply-demand gap to its most acute level since the current crisis began.
The disruption has rippled across multiple sectors simultaneously — industrial production, transport, household cooking, and grid-based power generation have all been affected within days of the terminal failure.
Industrial Losses and Labour Unrest Fears
Nearly 80 per cent of textile, dyeing, and printing mills in Narsingdi and Madhabdi have shut down operations, with industry representatives estimating daily losses of Bangladeshi Taka 400–500 crore. Abdullah Al Mamun, spokesperson for the Bangladesh Textile Mills Association and Managing Director of Abed Textile Processing Mills, warned that factory owners would struggle to meet wage obligations, utility payments, and loan repayments — and that the situation could trigger labour unrest.
Rashedul Hasan Rintu, President of the Narsingdi Chamber of Commerce and Industry, was quoted by The Daily Star as saying: 'Our garment, textile, and dyeing industries are being pushed towards a standstill. Excessive load shedding is now adding fuel to the fire.'
Transport and Households Paralysed
In Narayanganj, 30 of 33 CNG filling stations have halted vehicle refuelling. CNG-run auto-rickshaw drivers blocked a highway in Jamalpur on Thursday, demanding restoration of regular gas supplies. In several districts, residents are reportedly struggling to cook due to near-zero gas pressure at the household level, according to The Daily Star.
Power Cuts Intensify Across Dhaka and Rural Areas
Load shedding was reported in parts of Dhaka from Thursday midnight, with officials from Dhaka Power Distribution Company and DESCO confirming that power generation came under mounting pressure as gas supplies tightened. Rural communities have reportedly been hit hardest, with some areas enduring up to 12 hours of load shedding per day.
Government Response and Political Fallout
Iqbal Hassan Mahmud, Bangladesh's Minister for Power, Energy and Mineral Resources, acknowledged the government's limited capacity on Thursday, stating there was 'no other option' to manage the load shedding. The Awami League accused the ruling BNP government of pushing the country into an unprecedented energy crisis, claiming it has continued what it described as the 'fatal policy inertia' of the previous interim administration led by Muhammad Yunus. The party alleged that daily power outages lasting between six and 12 hours have made life increasingly difficult for people across the country.
With no immediate fix in sight for the offline FSRU, analysts and industry bodies are watching whether emergency procurement or alternative supply arrangements can be activated before the industrial disruption translates into broader economic damage.