Gas Crisis Deepens as LNG Terminal Shutdown Squeezes Bangladesh's Power Grid

Bangladesh's energy sector is grappling with a deepening gas shortage after the shutdown of a floating LNG terminal operated by Excelerate Energy triggered a sharp drop in supply to the national grid, according to officials at Petrobangla.

Supply shortfall widens

Regasified liquefied natural gas (RLNG) supply to the grid has fallen by around 550 million cubic feet per day (mmcfd) since the terminal went offline, officials said. The evening power shortfall has climbed to roughly 962 megawatts, forcing wider load shedding across both urban and rural areas even as authorities have ramped up generation from coal and liquid-fuel plants.

State-run power distributors said the Meghnaghat gas-fired power plant and several other facilities have had to curtail output because of the reduced gas flow, with industrial users among the hardest hit.

Government response

• Spare parts for the floating LNG terminal are being fast-tracked for import to restore capacity, according to the energy ministry.
• The government has approved purchase of an emergency LNG cargo at $22.35 per MMBtu to ease the shortfall.
• A 13-year LNG import deal has been secured with a US supplier to bolster long-term supply security, officials confirmed.

Energy analysts say the crisis underscores Bangladesh's continued reliance on imported LNG despite efforts to diversify domestic gas exploration. Businesses in Dhaka and Chattogram have reported production slowdowns due to unscheduled outages.

The state-run Bangladesh Petroleum Corporation said it expects supply to stabilise gradually over the coming weeks as emergency cargoes arrive and terminal repairs progress, though it cautioned that rolling outages could persist during peak demand periods.