Bangladesh's Gas Crisis Worsens After FSRU Accident
The ongoing gas shortage in Bangladesh has taken a turn for the worse after an accident at the Excelerate Energy-operated floating storage and regasification unit (FSRU) at the Moheshkhali LNG terminal. The incident, which occurred on July 21, damaged critical cable systems used to operate the terminal.
The damage resulted in around 500-600 million cubic feet per day (mmcfd) of regasification capacity being knocked out, sharply reducing gas supply to the national grid. This has severely impacted gas-fired power plants, with electricity generation reduced by over 25% due to the FSRU's operation disruption.
To ease the crisis, the government approved the purchase of one spot cargo of liquefied natural gas (LNG) from Singapore-based Vitol Asia Pte Ltd at $22.35 per million British thermal units (MMBtu). The 42nd spot LNG cargo to be procured in 2026 is scheduled to arrive on August 15-16 and will help increase the country's overall natural gas supply.