Bangladesh's Gas Shortage Threatens Exports and Daily Life

Bangladesh is facing a severe gas shortage that's disrupting industrial production and daily life. The crisis has intensified after a technical failure at one of the country's floating storage and regasification units (FSRUs) on July 22, cutting liquefied natural gas (LNG) supply to the national grid by around 450-500 million cubic feet per day (MMCFD).

The country's daily gas demand stands at around 3,800-4,000 MMCFD, while normal supply is only 2,600-2,700 MMCFD. The reduced gas supply has also affected electricity generation, with gas allocation to power plants falling from about 900 MMCFD to 700 MMCFD.

Industry leaders say the twin shortages of gas and electricity have created severe bottlenecks across industrial supply chains, increasing production costs and jeopardising delivery schedules for overseas buyers. Economists warn that the current crisis highlights deeper structural weaknesses in the country's energy sector.

The government has apologised to consumers for the disruption and said technical teams are working round the clock to restore operations at the affected LNG terminal. However, industry leaders and consumers alike fear that unless gas supply improves soon, disruptions to industrial production, exports, and daily household life will persist.