Muhammad Tareq; Dbarta24 — A severe energy crisis has gripped Bangladesh following a fire at a major Floating Storage and Regasification Unit (FSRU), leaving millions without cooking gas, disrupting industrial output, and driving daily power load-shedding past 2,500 megawatts (MW).
With national gas supply plummeting to under 2,110 million cubic feet per day (mmcfd) against a daily demand of 3,800 mmcfd, utility providers admit that normal service is unlikely to resume before mid-August.
Terminal Fire Paralyses Supply Chain
The crisis unfolded on July 21 when a fire broke out at US-based Excelerate Energy’s floating LNG terminal off the coast of Moheshkhali, Cox’s Bazar.
The shutdown of the facility slashed imported liquefied natural gas (LNG) distribution from its usual peak of 1,050 mmcfd down to a mere 460 mmcfd.
According to sources at the Energy and Mineral Resources Division, Excelerate Energy has requested time until August 10 to fully restore operations.
In the interim, technical teams—comprising foreign experts and engineers from a local shipbuilding firm—are attempting to operationalize an undamaged boiler at the terminal.
If successful, this partial restoration could inject an additional 300 mmcfd into the national grid within days.
Meanwhile, government efforts to import emergency LNG from Malaysia via specialized ISO tank containers have hit administrative and logistical hurdles.
Officials conceded that the containerized method is both cost-prohibitive and time-consuming, offering no immediate respite.
Households Distressed, Industries Forced into Stagnation
Residential areas across the capital, Dhaka, have been hit hardest. Residents in neighborhoods such as Mohammadpur, Adabor, and Tajmahal Road report going weeks without gas supply, forcing many to adapt to traditional wood-burning mud stoves or electric cookers.
“For two weeks, the stove hasn’t lit up at all. We stay awake from midnight to 3:00 AM hoping for a spike in pressure, but nothing comes,” said Jesmin Akhtar, a resident of Mohammadpur’s Naboday Housing area.
The shift toward electric stoves has intensified the burden on the national power grid. Gas supply to power generation plants has dropped by over 200 mmcfd, cutting electricity production by more than 1,500 MW.
The Power Development Board (PDB) reported daytime load-shedding reaching 2,330 MW, with rural areas outside Dhaka bearing the brunt of blackouts.
Manufacturing hubs in Narayanganj, Gazipur, and Bhaluka report severe operational disruptions. Industrial units are running at 50% to 70% capacity, with some forced to shut down completely.
Many factory owners have resorted to expensive diesel generators or are exploring emergency renewable setups to fulfill export commitments.
Price Hike Proposal vs. Ministerial Reassurance
Amid the worsening shortage, state-owned Petrobangla submitted a proposal to the Energy Ministry seeking policy approval to hike gas prices—by 67% for power generation and 51% for compressed natural gas (CNG) used in transport—to offset massive financial deficits. Petrobangla incurred a deficit of ৳17,856 crore in FY 2025–26 due to elevated global LNG prices.
However, the government has moved quickly to dismiss rumors of an imminent price surge during a public crisis.
“The government has no intention of raising gas prices right now. People are suffering deeply due to a sudden technical accident at the terminal. Our top priority is to boost supply quickly and deliver relief,” stated Energy and Mineral Resources Minister Iqbal Hasan Mahmud.
The minister added that he was unaware of the price hike proposal letter and emphasized that long-term plans for alternative energy sources are currently underway.
Outlook Remains Uncertain
Despite formal apologies issued by Petrobangla and Titas Gas Transmission and Distribution Company, low-pressure issues will persist across all customer segments until the Moheshkhali terminal is re-commissioned.
With global LNG prices fluctuating near $21 per MMBtu due to Middle East geopolitics, Bangladesh’s energy sector faces a tough road toward stabilization in the weeks ahead.