Bangladesh plans to install three additional floating storage and regasification units (FSRUs) by 2029 as the government seeks to strengthen energy security after an LNG terminal disruption triggered widespread gas shortages and disrupted industrial production.
Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood said on Thursday that the immediate crisis was expected to ease after repairs to a damaged FSRU and the arrival of LNG cargoes. The terminal suffered an unexpected fire that disrupted gas supplies and required specialised repairs by engineers from Britain and Singapore. Read Here
The minister warned, however, that gas availability could temporarily deteriorate again because the terminal will require a 72-hour shutdown for boiler maintenance after the second phase of repairs. The government has already procured LNG cargoes that will be unloaded once the FSRU resumes operations, he said.
The disruption has highlighted Bangladesh’s dependence on imported LNG and the vulnerability of its gas system to failures at individual terminals. Domestic gas production has also fallen sharply, with recent estimates putting output at about 1,700 million cubic feet per day, compared with a peak of 2,786 mmcfd in 2017.
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Under the longer-term plan, new FSRUs are being considered at Payra, Mongla and Hiron Point. The government also plans an undersea gas pipeline from Chattogram to Bakhrabad to address bottlenecks in the existing transmission network.
For Bangladesh’s export-oriented textile and garment sector, reliable gas supply is critical because shortages can reduce factory utilisation, disrupt production schedules and raise reliance on costlier alternative fuels. The government has therefore permitted a private company to transport gas from Bhola directly to factories, while discussions are under way with Malaysia on containerised gas delivery for industrial users.
The government is also seeking to revive domestic exploration through Bangladesh Petroleum Exploration and Production Company, or BAPEX, including the purchase of two drilling rigs. It plans broader energy-sector reforms aimed at increasing private-sector participation and is drafting a new fuel oil policy.
The crisis comes as Bangladesh faces rising exposure to imported energy. Primary energy imports increased from 47.7% in fiscal 2020-21 to 62.5% in fiscal 2024-25, according to the Institute for Energy Economics and Financial Analysis.
The government’s FSRU expansion could improve supply resilience, but experts say greater domestic gas exploration, renewable energy investment and stronger transmission infrastructure will be needed if Bangladesh is to reduce the economic risks of recurring energy shortages.