The government has acknowledged that its ability to quickly resolve the ongoing gas shortage affecting Bangladesh’s industries and power generation is currently limited, with authorities largely dependent on the repair and restoration of a floating liquefied natural gas terminal.

Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud said the immediate priority was to manage available gas and electricity as efficiently as possible, while keeping load-shedding under control until the damaged terminal returns to operation. He made the remarks online on Thursday morning during a policy dialogue titled Navigating Bangladesh Energy Crisis: Immediate Priorities and the Path to a Sustainable Energy Future, held at the BRAC Centre in Dhaka.

The discussion focused on the immediate effects of the energy shortage, disruption to industrial production and the longer-term challenges surrounding Bangladesh’s energy security.

According to the minister, there is no realistic prospect of significantly increasing domestic gas production in the short term. Although Bangladesh is importing LNG, the country cannot currently bring the required volume into the national gas network because one of its floating LNG terminals is out of service.

The terminal was damaged by a fire, triggering a significant reduction in gas availability. Engineers from the United Kingdom and Singapore are involved in the repair work. Once repairs are completed, two new boilers will reportedly need to be brought into operation simultaneously. The technical process could require the entire system to remain shut for around 72 hours, potentially creating another temporary squeeze in gas supply during the terminal’s restart.

The minister said the government’s immediate task was therefore to prioritise gas for industries while managing electricity generation and load-shedding as carefully as possible.

New LNG capacity planned

The government is looking towards 2029 as an important target for strengthening the country’s energy infrastructure. An order has already been placed for another floating LNG terminal, while plans are also being considered for three additional floating facilities at Payra, Mongla and Hiron Point.

Alternative arrangements are also being explored to supply industries. One company has been authorised to operate 30 container trucks to transport gas from Bhola to industrial facilities. Discussions are also under way with a Malaysian company over a system that could allow gas to be transported directly in containers.

The minister also raised concerns about changing electricity consumption patterns at night. He said a substantial number of battery-powered rickshaws are being charged through illegal electricity connections, particularly during night-time hours. This is increasing pressure on the power system at a period when demand patterns are already changing.

Overall electricity demand is approaching 18,000 megawatts, according to the minister. Efforts to disconnect illegal connections have also created security concerns, with electricity workers reportedly facing attacks in different areas.

He said rumours surrounding fuel supplies were adding to public uncertainty. The government, he added, had no plan to give any single company exclusive control over oil trading. Instead, work was under way on a new policy that could allow private companies to import petroleum products provided they meet specified conditions.

Industry bears the brunt

Representatives of the industrial sector told the dialogue that the gas shortage was already having a substantial impact on production.

Anwar-Ul Alam Chowdhury Parvez, president of the Bangladesh Chamber of Industries, said production at some factories had fallen by between 35 and 40 per cent because of inadequate gas supplies. Businesses are facing a difficult combination of lower production, loan repayment obligations and continuing wage and operating costs.

For export-oriented manufacturers, the consequences could extend beyond immediate financial losses. Persistent interruptions in production may affect delivery schedules and undermine confidence among international buyers, potentially putting future orders at risk.

Industrial representatives called for the sector to receive the highest priority in gas distribution and urged the government to consider emergency support measures for businesses facing severe operational difficulties.

Heavy dependence on imported energy

A research presentation at the dialogue highlighted the structural weaknesses behind the current crisis. Senior Research Associate Fakhruddin Al Kabir said Bangladesh’s dependence on imported energy had increased its exposure to international price and supply shocks.

According to the figures presented, about 84 per cent of electricity used in the country is dependent on fossil fuels, while renewable energy accounts for only 4.5 per cent. Such dependence leaves the power and industrial sectors vulnerable whenever international energy markets become unstable. It also increases pressure on foreign-exchange reserves because a significant share of energy requirements must be met through imports.

The research recommendations included expanding domestic gas exploration, accelerating solar and other renewable energy projects and developing strategic energy reserves. Targeted policies were also suggested to reduce the impact of volatile imported fuel prices on lower-income households.

Calls for a long-term strategy

The dialogue’s participants stressed that emergency measures alone would not resolve Bangladesh’s energy problems.

Fahmida Khatun, executive director of the research organisation that hosted the event, called for an integrated plan covering at least 10 years. She said stronger institutional capacity, realistic market policies, appropriate pricing mechanisms and better-targeted subsidies were necessary to address persistent weaknesses in the energy sector.

David Hasnat, president of the Bangladesh Independent Power Producers Association, said severe gas shortages were forcing a significant number of gas-fired power plants to remain idle. Declining output from domestic gas fields was making the situation more difficult. He argued that, alongside new floating LNG terminals, land-based LNG infrastructure should also be considered as part of a broader strategy for energy security.

Mustafa Al Mahmud, president of the Bangladesh Sustainable and Renewable Energy Association, urged the government to accelerate solar power development. He proposed reducing administrative delays at ports, providing tariff incentives for energy-storage technologies and converting large numbers of diesel-powered irrigation pumps to solar-powered systems.

Energy specialist Professor Ijaz Hossain pointed to long-standing policy weaknesses, inadequate pricing structures and system losses. He argued that increasing generation and supply alone would not be sufficient and that reducing waste and managing demand must receive equal attention.

Industrialist and business leader Syed Nasim Manzur called for reliable gas and electricity supplies, published load-shedding schedules, lower system losses and stronger fiscal incentives for solar power and energy-storage systems. He also urged the authorities to give priority to industrial consumers when allocating scarce energy resources.

The minister acknowledged the financial pressure facing businesses, noting that factory shutdowns do not stop workers’ wages, bank instalments and other fixed costs. He said the government was pursuing every feasible measure to manage the present situation and indicated that the Prime Minister would outline the country’s electricity and energy plans for 2029 during the next parliamentary session.

The broader discussion made clear that Bangladesh’s energy crisis is not simply a temporary shortage of gas. Its effects are spreading through industrial production, exports, electricity generation and foreign-exchange requirements. Addressing the immediate supply gap is therefore only one part of the challenge. Domestic exploration, LNG infrastructure, renewable energy, storage capacity, demand management and more effective energy-sector governance will all be critical if Bangladesh is to build a more resilient and sustainable energy system.