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Bangladesh energy crisis amid regional supply disruptions

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2026-09-17 16:58 UTC → 2026-09-22 08:28 UTC · added ~~removed~~

Bangladesh is experiencing a complex energy crisis driven by both domestic technical failures and international geopolitical tensions. While industrial gas supplies have begun to recover following a fire at a floating LNG terminal in Maheshkhali operated by Excelerate, the recovery remains fragile. Prime Minister Tarique Rahman noted that technical issues at the terminal have been resolved, with supplies expected to return to levels seen six weeks prior. Petrobangla has prioritized industrial consumers, though domestic gas production has declined by approximately 40 million cubic feet. The Prime Minister characterized the situation as a set of “inherited problems” requiring long-term solutions. However, new regional instabilities are exacerbating the shortage. Disruptions in the Gulf, including attacks on Iran by the United States and Israel and conflict involving Saudi Arabia and Iran-backed Houthis in the Red Sea, have threatened trade routes through the Strait of Hormuz. Because more than 40% of Bangladesh’s electricity is derived from imported LNG, these disruptions have led to blackouts and factory shutdowns. To compensate for supply disruptions from Qatar, Bangladesh has been forced to seek more expensive cargoes on the spot market. This shift coincides with a significant rise in Asian spot LNG prices, which have climbed toward $30 per million British thermal units from a previous level of approximately $10. Shell estimates that approximately 36 million tonnes of LNG have been lost from the Middle East so far this year. The crisis is now significantly impacting the nation’s garment industry. A survey of 134 knitwear factories found that 78% have partially halted production, while 55% have experienced canceled or reduced orders since late August due to gas and power shortages. These disruptions have resulted in shipment delays and discounted orders.

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