Bangladesh Gas Crisis Worsens, Hits Export Earnings Hard

Bangladesh is facing a severe gas crisis that's disrupting industrial production, household life, and export earnings. Industry leaders say persistent shortages of gas and electricity have hit key sectors like readymade garments (RMG), textiles, and steel, increasing costs and jeopardizing delivery schedules for overseas buyers.

The crisis has intensified after a technical failure at one of the country's floating storage and regasification units (FSRUs) on July 22 cut liquefied natural gas (LNG) supply to the national grid by around 450-500 million cubic feet per day (MMCFD). With daily demand standing at 3,800-4,000 MMCFD and normal supply only 2,600-2,700 MMCFD, there's a structural deficit of more than 1,100 MMCFD.

Gas allocation to power plants has fallen from about 900 MMCFD to 700 MMCFD, reducing gas-fired electricity output from around 5,200 megawatts (MW) to 3,500 MW and leading to power shortages of between 2,000 MW and 3,000 MW nationwide.

Bangladesh Garment Manufacturers and Exporters Association President Mahmud Hasan Khan said garment factories have struggled to maintain smooth production over the past several weeks due to inadequate gas and electricity supplies.