Bangladesh Energy Crisis Deepens Amid LNG Price Spike
The gas and electricity crisis in Bangladesh has worsened due to skyrocketing international liquefied natural gas (LNG) prices and supply shortages. The conflict in the Middle East has led to a sharp increase in LNG prices, which have nearly doubled.
The shortage of gas is affecting power generation, industries, compressed natural gas (CNG) stations, and households. Disruptions in gas production and supply continue to be a major issue, despite the government relaxing procurement rules and offering higher prices.
Industrial production has been severely impacted, with around 70% of the production capacity of gas-dependent factories remaining unused. This is putting pressure on the export sector, according to a domestic media outlet.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) feels that the gas supply situation has improved slightly, but remains inadequate for industrial production. The RMG sector had seen a 30-35% decrease in production due to insufficient gas supply, with backward-linkage industries suffering the most.