Gas Crisis Easing with Influx of Cargoes
Rafiqul Islam Selim
The nationwide energy crisis in the country is finally easing as successive liquefied natural gas (LNG) shipments arrive, driving a steady increase in gas supply from the floating terminals located in Moheshkhali. Following the arrival of a fresh cargo, the combined supply from the two primary floating terminals has surged past 900 million cubic feet. This marks a significant recovery after supply had remained critically stagnant at 700 million cubic feet for over a month, heavily impacting both industrial output and domestic daily life.
Addressing the situation during a high-level meeting with business leaders in Dhaka, Prime Minister Tarique Rahman assured stakeholders that both gas and electricity supplies would see a substantial increase starting immediately. The severe nationwide crunch originally began in March due to geopolitical conflicts in the Middle East, particularly affecting major suppliers like Qatar. Qatar accounts for the primary source across six of the country’s eight active import contracts, supplying 70 percent of total LNG last year. However, production ground to a halt following an attack on Qatar’s largest LNG facility in March, causing numerous scheduled deliveries to fail.
The shortage escalated sharply by the second week of July as terminal supply plummeted below 500 million cubic feet against a combined operational capacity of 1,100 million cubic feet. Compounded by a simultaneous drop in domestic gas field production, the crisis triggered widespread power outages, forced gas-fired power plants to shut down, and crippled gas-dependent factories, households, and CNG stations. The situation began to reverse only after regular LNG cargo arrivals resumed on August 22, setting the stage for a systematic recovery throughout the current month.
A structured schedule of nine cargoes has been locked in for September, highlighted by the recent berthing of the MT Udang, a vessel carrying a 40,000-ton capacity, at Moheshkhali. Rupantarita Prakritik Gas Company Limited (RPGCL) officials confirmed that offloading for the Excelerate Energy terminal began as planned, drastically boosting output alongside Summit Power’s terminal. Petrobangla directed an increase in combined output to 900 million cubic feet by midnight, pushing total national grid supply past 2,500 million cubic feet and normalizing distribution.
With another delivery scheduled immediately, officials are fully prepared to scale terminal supply up to its maximum 1,100 million cubic feet capacity. National demand currently stands at 3,800 million cubic feet against a running supply of 2,600 to 2,700 million cubic feet. Highlighting the upcoming pipeline, an RPGCL official detailed that subsequent shipments are locked in for September 16, 19, 23, 25, and 28, bringing the monthly total to nine. Insiders note that imported LNG accounts for 35 to 40 percent of the nation’s overall gas supply, making consistent cargo flow vital for grid stability.
To permanently bridge the gap caused by the cancellation of 47 long-term cargoes through November due to the Iran conflict, the government is aggressively expanding sourcing channels. Bangladesh maintains eight contracts across four countries for 103 total scheduled cargoes this year, supplemented by a new agreement with the United States and direct procurement methods (DPM). These include 18 cargoes contracted via TotalEnergies from October through June, alongside a strategic agreement with Gunvor USA LLC for 117 cargoes through 2038, ensuring long-term energy security.
