Gas shortage to idle one-third of power capacityAround one-third of Bangladesh’s gas-fired power generation capacity is likely to remain idle due to an ongoing shortage of natural gas, officials have warned.
The Bangladesh Power Development Board (BPDB) estimates that electricity generation from gas-fired plants could fall to just 4,560 megawatts (MW) against an installed capacity of 12,204MW if gas supply is capped at 850 million cubic feet per day (mmcfd).
According to official data presented at an inter-ministerial meeting last week, Petrobangla plans to supply 850mmcfd of gas to power plants in the current fiscal year, 79mmcfd less than the allocation in the previous year. The meeting was chaired virtually by Power and Energy Adviser Muhammad Fouzul Kabir Khan.
BPDB officials said generation from gas-fired plants could increase to about 6,840MW if gas supply rises to 1,200mmcfd.
At the meeting, Petrobangla warned that the steady decline in domestic gas production could further disrupt electricity generation and weigh on overall economic productivity.
Petrobangla data show that output from local gas fields is expected to fall by 65mmcfd this year to an average of 1,746mmcfd, down from 1,809mmcfd in 2025.
The state-run gas company has projected an average gas supply of 1,754mmcfd between January and March 2026. Supply is then expected to decline by 23mmcfd to 1,731mmcfd from April to December, when electricity demand typically peaks due to higher summer consumption.
These projections were shared by Petrobangla Director (Operations) Engr Md Rafiqul Islam with the Ministry of Power, Energy and Mineral Resources at an inter-ministerial meeting on January 21.
He said Petrobangla plans to cut gas supply to power plants by 79mmcfd to 850mmcfd in the current fiscal year compared with 2025, marking one of the lowest allocations to the power sector in the past five years.
BPDB data show that gas supply to power plants stood at 940mmcfd in 2022, rose to 1,009mmcfd in 2023, before declining to 927mmcfd in 2024 and 919mmcfd in 2025.
Meanwhile, Petrobangla plans to raise gas supply to industries and captive power users by 52mmcfd to 1,105mmcfd in the current fiscal year. Gas allocation to the fertiliser sector is also set to increase by 88mmcfd to 229mmcfd compared with 2025.
Despite declining gas availability, Power Division Secretary Farzana Momtaz has requested the Energy and Mineral Resources Division to consider additional gas supply to power plants during Ramadan and the peak summer season.
In response, a former Petrobangla chairman said BPDB has yet to formally submit its additional gas demand.
BPDB Chairman Rezaul Karim said the board is currently assessing gas requirements for the boro irrigation season and the summer months.
Petrobangla has also urged BPDB to clear outstanding gas bills of Tk2,000 crore to help ensure uninterrupted supply. Total arrears currently stand at Tk16,516.90 crore, including Tk8,096.65 crore owed by public sector power plants.
To offset falling domestic output, Petrobangla plans to import six additional LNG cargoes this year, raising the total to 115 from 109 in 2025.