Bangladesh’s LNG Dependence Highlights Energy System Vulnerabilities

A new documentary by the Coastal Livelihood and Environmental Action Network (CLEAN) has shed light on the vulnerabilities in Bangladesh’s energy system due to its heavy reliance on imported liquefied natural gas (LNG). The film, titled “The LNG Chokepoint: Bangladesh’s Energy Security Under Strain,” examines how disruptions at the country’s floating LNG terminals in Moheshkhali can lead to severe impacts on electricity supply, industrial production, and workers’ livelihoods.

The documentary highlights a fire during a ship-to-ship LNG transfer operation at Moheshkhali, which disrupted operations at an LNG terminal and caused a significant reduction in gas supply to the national grid. According to Petrobangla data, gas supply dropped to around 2,170 million cubic feet per day (mmcfd) against a demand of nearly 3,800 mmcfd, resulting in electricity shortages exceeding 3,750 megawatts. These disruptions have severely affected industries and businesses, particularly in Old Dhaka, where frequent power cuts have halted production in metal workshops.

Workers in Old Dhaka’s metal workshops shared their struggles with power interruptions. Mohammad Hossain, a metal workshop worker, mentioned that power cuts often stop his lathe machine mid-work, leading to lost income. Anis Rahman, another worker with nearly 45 years of experience, noted that power disruptions affect both factory owners and workers, with customers leaving and wages decreasing due to the regular blackouts.

Experts like Monower Mostafa, a developmental economist, argue that the Moheshkhali fire revealed the lack of reliable backup systems in Bangladesh’s energy sector. He pointed out that international financing institutions had previously identified management capacity and operational issues as risks associated with LNG infrastructure. Bangladesh’s two LNG terminals have required significant financial commitments, with Petrobangla paying around US$1.14 billion in capacity charges over eight years for the facilities.

Hasan Mehedi, chief executive of CLEAN, highlighted the financial pressure created by Bangladesh’s increasing dependence on imported LNG. He noted that Bangladesh pays around US$454,000 per day in terminal fees for two Floating Storage and Regasification Units (FSRUs), even when LNG is not being regasified. Since 2018, Bangladesh has spent approximately US$25.65 billion on LNG imports, raising questions about the long-term sustainability of an import-dependent energy strategy.

The documentary also examines Bangladesh’s broader fossil fuel infrastructure, including the Matarbari Ultra Super Critical Coal-Fired Power Plant and the Matarbari Deep Sea Port. It argues that continued investment in imported fossil fuels may increase economic pressure and leave consumers and workers vulnerable to global energy market shocks. CLEAN aims to highlight the need for a more resilient, affordable, and diversified energy system for Bangladesh.