AN ACUTE gas crisis has severely affected industries and households in Dhaka and elsewhere. The supply of gas plummeted on May 29 after imported liquefied natural gas unloading had been suspended because of inclement weather. The power sector on May 27 received 941.3mmcfd of gas against the demand for 2420.9mmcfd while the fertiliser sector received 119mmcfd against the demand for 329mmcfd. Recent Petrobangla data show a daily supply of around 2,692mmcfd against a demand for 4,000mmcfd. In the last quarter of 2024, the daily gas deficit was about 1.35 billion cubic feet, with industries receiving 30 per cent less gas than the demand. Four trade bodies in the apparel and ceramic sectors have recently said that operation in many factories has halved and that the situation could worsen after Eid-ul-Azha. Consumers are angered by the gas crisis because their energy bills soared, especially in the past few years, while the crisis worsened.
The current crisis is largely owed to flawed energy policy. Despite the potential of domestic gas reserves, the Awami League government prioritised liquefied natural gas import over exploration. Gas output has decreased, but the demand has grown, leading to the energy insecurity. An increased dependency on LNG import not only threatens the stability of the exchequer but also leaves Bangladesh at the mercy of other countries in a volatile geopolitical climate. In 2022, price increase on the LNG market led to a disastrous situation against the backdrop of the Russia-Ukraine war. Besides, LNG import has become difficult because of the dollar crisis. Only a third of the onshore area has, meanwhile, been explored for gas, making it one of the least explored nations although its success in gas discovery has been way above the world average. Energy experts fear that the situation will only worsen with increased demand for power in the high summer. While there is no quick-fix to the crisis, the government should consider scheduled, dedicated supply for different sectors and other short-term remedies.
The chronic dependence on liquefied natural gas import, coupled with depleting gas reserves, holds the economy hostage. The government should, therefore, urgently devise a solution to ensure adequate gas supply. For a long-term solution, it needs to revise the energy policy, prioritise domestic gas exploration and renewable options to stop further decline and to end people鈥檚 suffering.