Gas Supply Improves, Industries Race to Recover Lost Production

At a glance
- According to a BSS report, former BGMEA president S M Fazlul Hoque confirmed that gas pressure and supply have recently improved, bringing relief to gas-dependent industries.

• Factories affected by months of shortages are extending working hours by two to three hours a day.
• Some factories are also maintaining production on weekly holidays to make up for lost output.
• Industries had been forced to use generators during periods of low gas pressure, increasing fuel and operating costs.
• Manufacturers said the improved supply is now easing those additional costs.
  Industry leaders expect production to return to normal gradually through continued cooperation between the government and businesses.

Context

Bangladesh’s gas shortage has repeatedly disrupted industrial production, electricity generation and other economic activities, linking it to both declining domestic gas production and growing dependence on imported LNG.

Bangladesh currently relies on two floating LNG terminals at Moheshkhali to supplement its domestic gas production. To boost future supply, the government is working towards extensive drilling and offshore exploration, diversifying suppliers, and planning additional floating and land-based LNG terminals at Matarbari.

Why it matters

The gas shortage was not limited to factories. It also affected power generation and increased the operating costs of businesses that had to rely on alternative fuels and generators. Moreover, for export-oriented industries, it meant delayed orders and additional costs.

The recent recovery shows that Bangladesh’s industrial growth depends on a reliable energy supply. Even when there is demand for products, factories cannot operate at full capacity without reliable gas and electricity supplies. Ensuring a stable gas supply is therefore essential for keeping production costs under control, protecting exports and supporting economic growth.

What we think

Bangladesh has been struggling with gas shortages for a long time now. Amid that, importing LNG, opening floating terminals, expanding exploration and planning new LNG facilities have all been used to keep the supply going. Yet factories still have to extend working hours and work through holidays just to recover from the latest shortage. Thus, the most important way for industries to grow without constantly holding their breath is actually securing a permanent, steady energy supply.