Bangladesh's Gas Shortage Worsens, Threatening Exports and Daily Life

A worsening gas shortage in Bangladesh is disrupting industrial production and daily life as factories rely on costly diesel generators due to severe shortages. The crisis has intensified following a technical failure at one of the country's floating storage and regasification units (FSRUs) on July 22, cutting liquefied natural gas (LNG) supply by around 450-500 million cubic feet per day (MMCFD).

Bangladesh's daily gas demand stands at around 3,800-4,000 MMCFD, while normal supply is only 2,600-2,700 MMCFD, leaving a structural deficit of more than 1,100 MMCFD. Since the FSRU outage, supply has dropped further to about 2,150 MMCFD, widening the shortfall to nearly 1,700 MMCFD.

The reduced gas supply has also affected electricity generation, with gas allocation to power plants falling from about 900 MMCFD to 700 MMCFD. This has led to a reduction in gas-fired electricity output from around 5,200 megawatts (MW) to 3,500 MW and power shortages of between 2,000 MW and 3,000 MW nationwide.

Manufacturers say the twin shortages of gas and electricity have created severe bottlenecks across industrial supply chains. Export-oriented factories are facing repeated production interruptions, increasing the risk of delayed shipments, financial penalties, and order cancellations from international buyers.