Bangladesh Gas Crisis Deepens Amid LNG Supply Disruptions
Bangladesh is facing a severe gas crisis due to a persistent gap between demand and supply. The country's daily gas demand stands at 3.8 billion cubic feet, but the average daily supply has remained at around 2.7 billion cubic feet since last year.
The situation worsened after a fire broke out at a floating LNG terminal last Tuesday, cutting LNG-based gas supply by nearly half. The country's reliance on imported liquefied natural gas (LNG) has increased due to declining domestic gas production, which stood at 2.7 billion cubic feet per day in 2017 but has since declined to below 1.65 billion cubic feet.
Private cars, passenger vehicles, and freight transport are facing fuel shortages, while households in many areas are unable to use their gas stoves. The Bangladesh Power Development Board (BPDB) needs between 1.1 and 1.2 billion cubic feet of gas daily during peak demand but receives only 900 million to 1 billion cubic feet.
Industry leaders say the crisis is due to the country's heavy dependence on LNG imports, which carries significant risks. The new government is drilling new wells and has invited bids for offshore oil and gas exploration, but domestic production is unlikely to increase significantly in the near future.