DHAKA, July 22: Bangladesh’s natural gas supply has suffered a major setback after a fire forced the shutdown of one of the country’s floating LNG import terminals (FSRU) operated by US-based Excelerate Energy off Maheshkhali, reducing national gas supply by around 450-500 million cubic feet per day (MMCFD).
The disruption has brought the country’s total gas supply down to around 2,200 MMcfd, intensifying shortages for industries, power plants, CNG filling stations and residential consumers across the country.
Speaking at a program on Wednesday, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud said the incident had created a significant shortfall in gas supply. He noted that Bangladesh narrowly avoided a more serious accident because no LNG carrier was connected to the terminal when the fire occurred.
The Minister said the supply disruption has severely affected consumers in several parts of the country, including Mymensingh, where households, industrial users and CNG stations are experiencing acute gas shortages. In some areas, the crisis has triggered public protests and road blockades.
He stressed that Bangladesh has no alternative but to accelerate domestic gas exploration and production to strengthen long-term energy security. At the same time, he said, the country must diversify and expand its LNG import infrastructure to reduce the risk of nationwide supply disruptions caused by the failure of a single import facility.
At an emergency press briefing, the Energy and Mineral Resources Division said technical teams and specialists are working around the clock to restore the damaged FSRU to operation as quickly as possible. Meanwhile, available gas is being prioritized for critical sectors through emergency supply management.
Energy Division spokesperson and Joint Secretary Monir Hossain Chowdhury said the immediate cause of the crisis was the shutdown of the FSRU, but the underlying problem is Bangladesh’s growing dependence on imported LNG following years of inadequate investment in domestic gas exploration and production.
He said the government has adopted short-, medium- and long-term programmes to boost domestic gas output, including a plan to drill 100 new gas wells. On Wednesday, the Executive Committee of the National Economic Council (ECNEC) approved a Tk 729 crore project to drill three exploratory wells in Begumganj and Sunamganj.
The government is also moving ahead with international bidding for onshore and offshore gas exploration, while encouraging both domestic and foreign investment in the upstream energy sector.
To strengthen energy security, the government has launched several additional initiatives, including plans to develop a fourth FSRU, assess the feasibility of importing LNG from Malaysia using ISO tank containers, evaluate pipeline and other transport options to bring gas from Bhola to the national grid, expand drilling and workover operations at existing gas fields, and diversify LNG import sources and infrastructure.
Bangladesh’s domestic gas production has declined sharply over the years—from around 2,800 MMCFD at its peak to about 1,645 MMCFD currently due to depletion of mature gas fields. To bridge the widening supply gap, the country began importing LNG in 2018 through two floating LNG terminals with a combined regasification capacity of around 1,100 MMCFD.
Industry estimates place Bangladesh’s current gas demand at around 5,500 MMCFD, although Petrobangla officially estimates demand at about 4,000 MMCFD. Before the latest disruption, total supply from domestic production and imported LNG stood at approximately 2,600 MMCFD. Following the shutdown of one FSRU, total supply fell further to around 2,200 MMCFD, worsening an already severe nationwide gas shortage.
