A technical fault at the floating liquefied natural gas (LNG) terminal off Maheshkhali has significantly reduced gas supplies to Bangladesh’s national grid, worsening an already severe energy shortage and disrupting residential, commercial and industrial consumers across the country.
The fault occurred at the Maheshkhali floating storage and regasification unit (FSRU), operated by US-based Excelerate Energy, during a ship-to-ship LNG transfer operation, according to official sources.
Local officials said an incident involving a fire was reported at one stage, although Petrobangla has not confirmed the extent of any damage to the terminal or whether the fire was directly responsible for the disruption.
Petrobangla’s Director (Operations), Engineer Md Rafiqul Islam, told Just Energy News that it could take up to two days to restore operations at the FSRU. Excelerate Energy had not responded to repeated requests for comment at the time of publication.
The disruption has intensified gas shortages in Dhaka and other parts of Bangladesh, where many households have been left with little or no gas for cooking for much of the day.
In some areas, supplies have stopped altogether, while factories in key industrial zones have been forced to reduce production because of low gas pressure.
In a statement issued on Tuesday, Titas Gas Transmission and Distribution Company Limited said the technical fault at the Maheshkhali FSRU had reduced gas supplies to the national grid by around 450 million cubic feet per day (mmcfd).
The company warned that customers across its distribution network would continue to experience low gas pressure until the fault is rectified.
Consumers supplied by other gas distribution companies have also been affected. Bangladesh’s daily gas demand is estimated at between 3.8 and 4.0 billion cubic feet, while the national grid typically receives around 2.7 billion cubic feet a day, leaving a routine shortfall of about 1 billion cubic feet.
Domestic gas fields supply around 1.65 billion cubic feet a day, while imported LNG contributes a further 950 million to 1 billion cubic feet.
The loss of approximately 450 million cubic feet of LNG supply has substantially widened the existing deficit. Maheshkhali hosts Bangladesh’s two floating LNG terminals, which have a combined regasification capacity of around 1.1 billion cubic feet per day. Under normal operating conditions, they deliver between 950 million and 1 billion cubic feet of gas daily to the national grid.
The technical fault has reduced current output to roughly half that level. The resulting fall in gas pressure has caused widespread disruption for households, particularly in the capital, where many residents have been unable to cook from early morning until late at night. Hotels, restaurants, bakeries and other small businesses are also struggling to maintain normal operations because of inadequate gas supplies.
Industrial consumers have been similarly affected, with many factories scaling back production because of insufficient gas pressure. Industry representatives have warned that prolonged shortages could disrupt export-oriented manufacturing and place further pressure on Bangladesh’s economy.
The disruption comes amid continuing uncertainty in global energy markets, fuelled by instability in the Middle East and tensions involving Israel and Iran. Energy analysts say any prolonged regional instability could increase volatility in international LNG and liquefied petroleum gas (LPG) markets, driving up import costs and placing further strain on Bangladesh’s energy sector.
Against this backdrop, the technical failure at the Maheshkhali LNG terminal has renewed concerns about the country’s energy security. Titas Gas apologised for the disruption and said engineers were working to restore normal operations as quickly as possible. The company said gas supplies would return to normal once the technical fault had been resolved.