Gas supply improves slightly, crisis far from over

Liquefied natural gas (LNG) supply has started increasing after a two-week disruption, bringing some relief to gas supplies across the country. However, the ongoing gas crisis has yet to ease. It may take several more days for the shutdown LNG terminal to resume supplying gas at full capacity.

Meanwhile, continued rainfall has brought some relief to the power sector, reducing load-shedding.

According to Bangladesh Oil, Gas and Mineral Resources Corporation (Petrobangla) and Gas Transmission Company Limited (GTCL) sources, gas supply from the terminal operated by US company Excelerate Energy resumed at 3:10am on Thursday. The terminal initially supplied 115 million cubic feet of gas, which gradually increased to 300 million cubic feet before Thursday evening.

There are two floating terminals in Maheshkhali, Cox's Bazar, for supplying imported LNG. Among them, the US-based company Excelerate Energy's terminal has a capacity of 600 million cubic feet and Summit’s terminal has a capacity of 500 million cubic feet.

Excelerate’s terminal was shut down on 21 July following a fire. The disruption reduced gas supplies and worsened the crisis, affecting everything from household cooking to industrial production and power generation. Long queues also formed at CNG filling stations.

According to Petrobangla, Excelerate’s terminal has two boilers, each with a capacity to supply 300 million cubic feet of gas. One was damaged in the fire, while gas supply resumed yesterday through the undamaged boiler.

Meanwhile, work is underway to repair the damaged boiler. Several pieces of equipment imported from abroad arrived at the airport yesterday and may reach the Maheshkhali terminal today after customs clearance. It may not be possible to restart the damaged boiler before 10 August after completing all the necessary work.

A senior official involved in operating the terminal told Prothom Alo that once the damaged boiler is ready for testing, the currently operational boiler will have to be shut down. Gas supply from Excelerate’s terminal will then stop completely for at least 12 hours before resuming gradually.

The country’s daily gas demand stands at around 3.8 billion cubic feet, while up to 2.7 billion cubic feet is normally supplied. Of this, LNG accounts for around 1.05 billion cubic feet.

After Excelerate’s terminal shut down, Summit’s terminal supplied LNG above its capacity for four consecutive days, reaching around 570 million cubic feet per day. Since then, it has been supplying about 500 million cubic feet a day.

As a result, total daily gas supply fell to around 2.15 billion cubic feet. Following the partial resumption of Excelerate’s terminal yesterday, supply increased to more than 2.45 billion cubic feet. Once the terminal resumes full operations, total supply is expected to return to around 2.7 billion cubic feet a day.

State Minister for Power, Energy and Mineral Resources Anindya Islam Amit said in a Facebook post yesterday that the country faced a gas shortage after supply from the LNG terminal was suspended due to a technical fault.

The disruption caused low pressure and interruptions in gas supply for industrial, power and residential consumers, he said. Following repairs to the technical fault, the terminal is now able to supply 200-250 million cubic feet of gas to the national grid.

For the past one and a half decades, Bangladesh’s gas sector has operated with a supply shortfall against demand. Domestic gas production has also been declining steadily for several years, increasing the country’s dependence on liquefied natural gas (LNG).

LNG now accounts for around 35–40 per cent of the country’s total daily gas supply. Any disruption to LNG imports therefore worsens the gas crisis. In 2024, Summit’s LNG terminal remained shut for about three and a half months after being damaged by a cyclone. In 2022, the government also halted spot-market LNG purchases for seven consecutive months after global prices surged.

The power sector is the country’s largest consumer of gas. Lower gas supplies reduce gas-fired power generation, widening the electricity shortfall. Load-shedding reached 3,000–3,500 megawatts at peak over the past few days. Even on Wednesday, a holiday, peak load-shedding stood at around 3,000MW.

However, heavy rain throughout yesterday reduced electricity demand. By 5:00 PM, maximum load shedding was 325 megawatts. Power shortages could rise again if temperatures increase.

After the power sector, industries are the largest consumers of gas. Factories in different parts of the country have long been struggling with inadequate gas supplies. New industrial connections remain suspended, while existing factories are struggling to maintain production.

The gas shortage over the past few days has further complicated operations at manufacturing plants. Some factories have given workers leave. Business owners fear that in addition to falling exports, the supply of daily commodities in the local market will be disrupted.

Energy experts say Bangladesh has a higher-than-global-average success rate in discovering gas fields relative to exploration efforts. Yet the country has not conducted adequate exploration. Even 14 years after settling its maritime boundary, Bangladesh is yet to discover oil or gas in the Bay of Bengal.

A long-term solution can only be found by emphasizing domestic gas exploration and production, although dependence on imports will always carry risks. However, the current government is talking about making vigorous efforts to increase exploration and production.

Ijaz Hossain, a former professor at the Bangladesh University of Engineering and Technology (BUET), told Prothom Alo that the country is facing an economic and dollar crisis, making it difficult to rely on imports.

Bangladesh’s energy crisis is deep, with no immediate solution in sight. The entire sector needs to be overhauled, with measures taken according to the country’s capacity.

Bangladesh must move towards developing energy-efficient industries, improve efficiency and curb gas theft. Without addressing the energy situation, the country’s economy cannot function properly.