Power, gas woes batter industry
Bangladesh’s worsening gas shortage is inflicting heavy economic losses on industries and intensifying public suffering, with factories cutting production, export commitments coming under pressure and households struggling with prolonged disruptions in gas and electricity supply.
The crisis, triggered by a major reduction in imported liquefied natural gas (LNG) supplies following the shutdown of one of the country’s two Floating Storage and Regasification Units (FSRUs) at Maheshkhali on July 21, has exposed the vulnerability of Bangladesh’s energy system and raised fresh concerns over industrial competitiveness and investor confidence.
According to the Ministry of Power, Energy and Mineral Resources, the technical fault has removed between 450 and 500 million cubic feet of gas per day (MMcfd) from the national grid.
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, daily supply has fallen further to about 2,150 MMcfd, widening the shortfall to nearly 1,700 MMcfd.
Domestic gas production currently ranges between 1,650 and 1,950 MMcfd and is declining by roughly 150 MMcfd annually as major gas fields become depleted. Under normal conditions, imported LNG contributes around 1,000 MMcfd to the national gas network.
The shortage has also reduced fuel supplies to power plants. Gas allocation for electricity generation has fallen from about 900 MMcfd to 700 MMcfd, cutting gas-fired power output from around 5,200 megawatts (MW) to 3,500 MW and resulting in nationwide electricity shortages of between 2,000 MW and 3,000 MW, ministry officials said.
The manufacturing sector, particularly the export-oriented textile and apparel industry, has been among the hardest hit.
In major industrial belts, including Gazipur, Savar and Narayanganj, gas pressure has dropped from the required 8-15 PSI to only 1-3 PSI, leaving boilers and generators unable to operate efficiently.
Industry sources said production in many factories has declined by 30 to 50 per cent, while some plants have suspended operations altogether.
Manufacturers have increasingly turned to diesel-powered generators to keep production running, sharply increasing operating costs.
Electricity generated from diesel costs around Tk 34 per unit, compared with Tk 14-15 per unit using natural gas, effectively more than doubling energy expenses.
Despite rising costs, exporters say international buyers are unwilling to increase purchase prices, placing further pressure on already narrow profit margins.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem said the prolonged gas shortage had severely disrupted industrial production.
