Bangladesh Gas Supply Plummets to Lowest Level in a Decade

The gas supply in Bangladesh has reached its lowest level since the early stages of the global coronavirus pandemic. In August, the average daily gas supply fell to 2,235 million cubic feet per day (mmcfd), the lowest level recorded for the month in a decade.

This crisis is largely due to declining domestic gas production and rising demand. Official estimates put current demand at around 3,860 mmcfd, but energy sector officials say the actual demand has already crossed 4,000 mmcfd and has remained at that level for the last two years.

The country began importing LNG in 2018 to supplement its declining domestic gas production. However, due to the US-Israel war on Iran, Qatar, one of Bangladesh's major long-term LNG suppliers, is currently not providing its contracted supply. As a result, Bangladesh has been forced to meet its requirements largely through the spot market.

The shortage has had severe consequences for power generation and industries. At the height of the crisis this month, the average hourly power generation shortfall reached around 3,000 megawatts. Power production from gas was around 5,000 MW against an installed capacity of at least 12,000 MW.