Gas Crisis Wreaks Havoc on Bangladesh's Economy

The ongoing gas crisis in Bangladesh has reached a critical point, affecting not only power and energy but also various sectors of the economy. The crisis began on July 21 when a technical fault at a floating LNG terminal off Moheshkhali in Cox's Bazar cut supplies to the national grid by about 450 million cubic feet a day.

As a result, the electricity generation shortfall exceeded 3,000 megawatts throughout much of yesterday, forcing distribution companies to extend load-shedding across the country. CNG filling stations are also struggling with near-zero gas pressure, causing long queues of vehicles outside the few that have any gas available.

Factory operators said inadequate gas pressure is forcing them to reduce operating hours, cut production or temporarily shut down units. The crisis has severely disrupted industrial production in Narayanganj, particularly in the dyeing and garment sectors, with many factories receiving no gas at all or operating with only 2-4 psi.

According to Md Morshed Sarwar, senior vice-president of the Narayanganj Chamber of Commerce and Industry, at least 85 dyeing and 65 garment factories have been directly affected. Production losses have ranged from 40 percent to as high as 80-90 percent, with some factories continuing limited operations to meet urgent export orders.