Bangladesh Gas Crisis Exposes LNG Import Chain Weakness

Bangladesh is facing a severe gas crisis due to logistical weaknesses and concentration risks in its LNG import chain. According to a recent report by The Daily Star, the country's total available gas supply stands at around 2,420 million cubic feet per day (MMcfd) in mid-August, while national demand reaches approximately 3,800 MMcfd.

The shortage has affected various sectors including factories, filling stations, households, and power plants. The report points out that the failure of Excelerate Energy's Floating Storage and Regasification Unit (FSRU) due to a fire and technical issues was not the sole cause of the crisis. Weather-related unloading delays at a terminal also contributed to the exhaustion of inventories and supply disruptions.

The LNG import chain consists of multiple links including procurement, cargo nomination, shipping, vessel scheduling, navigation through international sea routes, storage, regasification, transmission, and distribution. The report highlights that even if one link fails, the consequences can spread throughout the economy.