Bangladesh Gas Crisis Hits Decade-Low as LNG Supplies Disrupted

The energy crisis in Bangladesh has reached a critical level, with gas supply plummeting to its lowest level since the early stages of the Covid pandemic. According to local media reports, the average daily gas supply dropped to 2,235 million cubic feet per day (mmcfd) in August, a decade-low. This drastic decline is largely attributed to the US-Israel war disrupting Bangladesh's LNG supplies and Qatar's refusal to provide contracted volumes.

The shortage has severe consequences for Bangladesh's power sector, with electricity generation facing significant disruptions. At the peak of the crisis, the country's average hourly power generation deficit reached around 3,000 megawatts, while dozens of gas-fired generating units struggled due to fuel shortages.

Factories across major industrial belts are being forced to operate at drastically reduced capacity or even curtail production entirely. Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, stated that 'production is fluctuating sharply from day to day' due to gas shortages.

The crisis has left factories facing uncertainty over their ability to continue operations. With production costs doubling and the potential for losses looming large, many factories may be forced to close if the government does not take immediate action to address the issue.