Bangladesh’s gas crunch deepens, driving power shortfalls and hours-long outages

Bangladesh has tightened electricity-saving measures as the country grapples with gas shortages, prolonged power cuts and the wider fallout of the Iran crisis. Under a government directive, shopping malls, markets and shops across the country must now close by 8pm, an hour earlier than the previous deadline, news agency Reuters reported. The directive allows commercial establishments to operate only between 11am and 8pm. The earlier schedule, which came into effect on June 11, permitted them to remain open until 9pm. The new measures also require ongoing and upcoming fairs, trade fairs and cultural events to end by 8pm. Illuminated billboards must be switched off by 7pm, while decorative lighting has been prohibited. Food shops, hospitals and pharmacies have been exempted from the restrictions.

Gas crunch pushes power cuts to 12 hours in some areas

Bangladesh’s total gas supply fell to around 2,100 mmcfd, against daily demand of about 3,800 mmcfd, according to officials. Domestic gas fields supplied around 1,630 mmcfd, while the two floating LNG terminals together supplied up to 410 mmcfd. The supply was the lowest since an LNG terminal operated by US-based Excelerate Energy was hit by an accident on July 21, Dhaka Tribune reported. The Excelerate terminal partially resumed operations on August 5 but has not returned to full capacity. Meanwhile, the Summit-operated terminal reduced gas supply from August 10 because LNG tankers could not unload amid rough weather. Officials warned that the situation could worsen if fresh LNG cannot be received. The gas shortage has hit electricity generation, with gas-fired power plants unable to operate at required capacity. The country recorded an average 2,745 MW power shortfall per hour at 8pm, while some areas reported eight to 12 hours of load-shedding a day. The measures come as Bangladesh faces persistent shortages of natural gas, limiting power generation and leaving the national grid short by several hundred megawatts during peak hours. The shortfall has triggered load-shedding across different parts of the country, with some areas reporting outages lasting several hours. Bangladesh's dependence on imported liquefied natural gas (LNG) has added to the pressure. With domestic gas production declining, disruptions in LNG supplies can quickly translate into lower gas availability for power plants. A recent outage at an LNG terminal further strained supplies, temporarily reducing gas flows to the national grid. The energy crunch has also been compounded by the Iran crisis, which has disrupted global energy markets and pushed up volatility in fuel and LNG prices. For Bangladesh, which increasingly relies on imported LNG, uncertainty over international supplies and higher import costs have made securing adequate energy more difficult. The country was already facing a significant gap between gas demand and domestic supply before the latest disruptions.