Bangladesh Suspends New Gas Connections Amid Worsening Energy Crisis

Bangladesh's energy crisis has worsened to the point where the government has suspended new gas connections and load increases. The decision was made due to a decline in domestic production and limited LNG import capacity. As of now, there are 1,857 pending applications for new gas connections that remain on hold.

The Energy and Mineral Resources Division (EMRD) instructed Petrobangla to halt all fresh connections and load upgrades, citing the country's dependence on only two floating LNG import terminals. This move has left investors worried as billions of taka worth of industrial projects are stuck awaiting gas connections.

Petobangla supplies 2,500-2,600 million cubic feet per day (mmcfd) against a demand of around 3,800 mmcfd. Of the total, 800-900 mmcfd comes from the country's two floating LNG terminals, depending on weather, with the remainder coming from domestic gas fields.

Business leaders say the decision has stranded billions of taka in industrial investment. Mustafa Haider, director of TK Group, said that his company's two new factories remain idle because they have yet to receive gas connections. Khondoker Ahadduzzaman, company secretary of Global Heavy Chemicals Ltd, stated that the gas crisis has forced the company to slash production by 85%.