Bangladesh Gas Crisis

Bangladesh was largely self-sufficient in natural gas in 2018, but production declined as older fields depleted, while demand has risen. The country's gas crisis has hit factories, homes, and transport, with the giant Ashuganj fertiliser factory standing silent for over a year.

The factory, which once employed over 1,200 people and produced over 1,000 tonnes of fertiliser a day, is now a rusting shell. According to Md Bazlur Rashid, a 59-year-old worker who spent his entire working life at Ashuganj, the factory has lost its life.

Gas Shortage Impact

The gas shortage has forced six major urea fertiliser plants to close down or restrict operations. Trade union leader Md Abu Kawsar said the shutdowns have cost workers their jobs while threatening an industry linked to food security. The consequences of the gas shortage extend far beyond fertiliser production, with hundreds of factories, including textile plants, cutting production or shutting.

Bangladesh is the world's second-largest garment exporter, accounting for about 80 per cent of the country's export earnings. The government has issued electricity-saving measures, including ordering shopping malls to close an hour earlier. Electricity generation, industry, and captive power plants account for more than three-quarters of Bangladesh's gas consumption.

Household Impact

Households, which account for just over a tenth of the country's gas consumption, have also been hit. Housewife Nargis Begum, 50, said they don't get a drop of gas overnight, and sometimes the pressure is too low. Many households, particularly in rural areas, have switched to wood-burning stoves, while electricity cuts leave residents without fans in the sweltering humidity.

The shortages are the result of a crisis that has been building for years. Experts say successive governments have failed to invest sufficiently in exploration. Energy Minister Iqbal Hasan Mahmud Tuku blamed the previous government for failing to drill new wells. The government plans to buy two drilling rigs and has launched an offshore bidding round.

Petrobangla chairman Md Abdul Mannan said the ultimate answer lies beyond gas, and the gas crisis will be resolved once they turn to renewable energy. According to Md Anwar Hossain Bhuiyan, a geology professor at Dhaka University, a single well can cost US$12 to US$16 million to drill, but the value of the gas that can be recovered is much higher - around US$4.5 to US$4.9 billion. The government is continuing LNG orders and investing in terminals to expand imports, even as experts call for more domestic exploration. As reported by Channel News Asia, the crisis worsened after the war in the Middle East disrupted liquefied natural gas shipments. Gas-powered rickshaw drivers have also blocked roads in protest after hours waiting for fuel, with no quick fix in sight.