The energy sector in Bangladesh is once again reeling from severe supply vulnerabilities, exposing the heavy toll of past mismanagement, political patronage, and irregularities in procurement. Just days after a grueling 27-day gas crisis seemingly gave way to a brief twenty-four-hour respite, the national grid has plunged back into turmoil. Due to delays in scheduled cargo arrivals, liquefied natural gas (LNG) supplies have plummeted, threatening industrial production, compressed natural gas (CNG) stations, and residential households alike.
The immediate catalyst for the renewed crunch is the depletion of reserves at Excelerate Energy’s floating storage and regasification unit (FSRU). With inventories hovering near absolute zero, supply output from the terminal has trickled down to a meagre 50 million cubic feet per day (mmcfd) feeding directly into the national transmission network. According to data from Petrobangla and Rupantarita Prakritik Gas Company Limited (RPGCL), total LNG injection stood at roughly 536 mmcfd by midday on Monday when combined with Summit’s floating terminal output. This was supplemented by 1,605 mmcfd of gas extracted from domestic gas fields.
Energy sector insiders point to structural flaws born of political interference as the root cause of the recurring shortfall. Several LNG cargoes were previously procured through direct purchase methods driven by political lobbying rather than standard, transparent tendering processes. When those contracted suppliers failed to deliver shipments on schedule, the supply chain fractured, leaving the country vulnerable to sudden shortages.
A senior official at Petrobangla warned that Excelerate Energy’s terminal is projected to exhaust its remaining fuel entirely, rendering it completely gas-free. Unless a newly scheduled cargo arrives by 23 August, the supply deficit is expected to deepen significantly, compounding industrial distress.
The compounding fuel shortage is already disrupting everyday commercial and domestic activities. Low pipeline pressure has begun affecting urban households and manufacturing units, while motorists face elongated queues at CNG filling stations.
Fortunately, broader power sector stability received an unexpected cushion from weather patterns. Due to an active depression, overcast skies and persistent rainfall on Monday helped suppress overall electricity demand nationwide. Power generation hovering between 13,000 and 13,500 megawatts proved sufficient to keep the grid balanced, with daytime load-shedding generally restricted to around 500 megawatts. However, energy analysts caution that prolonged gas shortages could soon undermine electricity generation if immediate spot-market interventions fail to bridge the supply gap.
