Gas crunch hits Ctg

CHATTOGRAM, July 30: Deepening gas supply crisis is disrupting the commercial city Chattogram, where more than five million people are facing mounting pressure on households, factories and electricity generation after a sharp fall in available fuel supplies. 

According to consumers and official sources, the shortage is threatening industrial output, port businesses and the wider economy of the country's main ocean trade gateway.

The crisis has been driven by declining domestic gas production and a technical failure at one of Bangladesh's two LNG import terminals. Supplies to Chattogram have dropped to around 225 million cubic feet (mmcft) a day against demand exceeding 400mmcft, forcing industrial shutdowns, constraining power generation and leaving many households without pipeline gas.

The situation worsened after Excelerate Energy-operated floating storage and regasification unit (FSRU) at Moheshkhali in Cox's Bazar was taken offline on July 21 following a technical fault. The shutdown has cut regasified LNG (RLNG) output by almost half, reducing supplies to the national grid.

Karnaphuli Gas Distribution Company (KGDC) said it is currently receiving only about 225mmcft of gas daily against demand of more than 400mmcft. Low pipeline pressure has prevented the distributor from delivering adequate supplies to several parts of the city.

Officials said the shortage is expected to continue until the damaged LNG terminal resumes operations, with Petrobangla expecting the facility to return to service by August 15.

Two FSRUs at Moheshkhali, operated by Excelerate Energy and Summit Group, normally produce more than 1,100mmcfd of RLNG. The facilities convert imported LNG into gas before it enters the national pipeline network, making them critical to the country's energy supply system.

The supply disruption has already hit industrial activity. Production at Chattogram Urea Fertiliser Limited (CUFL) has been suspended, while steel mills, re-rolling plants, ceramic factories, textile and spinning mills and food-processing industries are struggling to maintain operations. Business leaders warned that prolonged shortages could delay production, raise costs and weaken export competitiveness.

The power sector has also come under pressure. Power Development Board (PDB) sources said Chattogram is experiencing around 150MW of daily load shedding as gas shortages restrict electricity generation.

Power plants in the Chattogram region are currently generating more than 3,000MW, including 1,100MW from the Matarbari coal-fired plant, 1,130MW from Banshkhali's SS Power plant and around 800MW from other government-owned facilities. The region's total electricity demand is approximately 1,300MW.

Households have also been affected, with many residents reporting little or no pipeline gas during peak cooking hours. Consumers dependent on liquefied petroleum gas (LPG) have faced additional pressure from rising demand and supply constraints.

KGDC estimates Chattogram requires around 350mmcft of gas daily - including 100mmcft for private industries, export processing zones (EPZs) and economic zones (EZs), 100mmcft for CUFL and KAFCO, 100mmcft for four power plants and 50mmcft for domestic consumers.