Bangladesh's Gas Crisis: A Logistics Problem

Bangladesh is facing a severe gas crisis that's not just about energy supply but also logistics. The country's reliance on imported liquefied natural gas (LNG) has increased significantly, and its current system lacks redundancy.

The recent disruptions in the LNG supply chain have exposed the weakness of Bangladesh's energy infrastructure. Excelerate Energy's floating storage and regasification unit (FSRU) went offline due to a fire and technical issues, while bad weather prevented an LNG carrier from unloading at Summit's terminal.

Bangladesh has only two FSRUs, which account for 30-37% of the national gas supply. The country's dependence on imported LNG has increased by 143%, while domestic gas production has declined by 28%.

Analysts warn that Bangladesh needs a more resilient LNG logistics system, not just another terminal project. A properly designed onshore terminal with storage facilities can provide greater operational flexibility and reduce excessive dependency on floating facilities.