Gas Cuts to Power Plants Will Only Deepen the Crisis

We find the government’s decision to cut gas supplies to power plants deeply concerning. According to the Power Division, Petrobangla will reduce daily gas allocation to power plants from around 950 million cubic feet to 750 million cubic feet and divert the remaining 200 million cubic feet to industries. We understand the need to support gas-starved factories. However, shifting scarce gas from one sector to another does not solve the underlying shortage. Instead, it risks worsening load-shedding and creating another obstacle for industries that also depend on reliable electricity.

The power sector already faces severe supply constraints. Gas, coal and fuel shortages have disrupted 62 power plants. Nepal has suspended its 40MW electricity supply after infrastructure damage, while Adani’s plant has reduced generation because of coal supply disruptions. Eight coal-fired plants, with a combined capacity of around 7,000MW, produced less than 5,000MW on August 27. Fuel oil shortages also affected 24 plants. Meanwhile, total gas supply fell to 2,339 million cubic feet on August 28 against official demand of 3,800 million cubic feet. Industry stakeholders estimate actual demand at 5,000�"5,500 million cubic feet. The figures expose a widening gap between energy demand and dependable supply.

The consequences are already serious. The power deficit climbed from 1,193MW on August 24 to 3,664MW by 3pm on August 27. Load-shedding has now reached Dhaka, with many areas facing repeated outages. At the same time, around 660 textile mills face acute gas shortages, while at least 300 garment factories have stopped production. Factories in Gazipur, Narayanganj and Narsingdi are struggling to maintain operations. This creates a clear policy contradiction. Giving industries more gas will not help much if they lose the electricity needed to run their machinery. Prolonged disruption could raise production costs, delay exports and weaken the country’s competitiveness.

Therefore, the government must increase reliable energy supply instead of repeatedly shifting shortages between sectors. It should urgently secure LNG cargoes and ensure adequate coal and fuel oil for power plants. Idle plants should return to operation quickly after resolving technical and fuel-supply problems. Meanwhile, domestic gas exploration must accelerate, while renewable energy and stronger energy infrastructure should receive greater priority. Most importantly, policymakers need an integrated energy strategy that considers the needs of power generation, industry and households together.

Ultimately, we expect the government to treat this crisis as a warning and act with greater urgency. The immediate priority should be to restore generation and contain load-shedding. Moreover, the authorities must ensure that energy planning keeps pace with the country’s economic needs. Bangladesh cannot afford to keep choosing between the power sector and industry. What we need is a resilient energy system capable of supporting both.