A major mechanical failure and fire at Summit/Excelerate Energy’s Floating Storage and Regasification Unit (FSRU) off Maheshkhali has exposed fundamental vulnerabilities in Bangladesh's import-dependent energy strategy.
The outage removed 450 to 500 million cubic feet per day (MMcf/d) from the national grid, causing national supply to slump from a required demand of ~3,800–4,000 MMcf/d down to 2,700–2,800 MMcf/d.
The severe gas pressure deficit has halted primary industrial hubs in Gazipur, Savar, Ashulia, Narayanganj, Narsingdi, and Chittagong.
The crisis is hitting the textile supply chain hardest—squeezing spinning mills, fabric dyeing units, and assembly lines—while threatening non-apparel manufacturing sectors like glass, ceramics, steel, pharmaceuticals, and consumer goods.
Daily national gas supply plummeted to 2,700–2,800 MMcf/d against a daily demand of 3,800–4,000 MMcf/d following the single FSRU terminal outage.
Spinning mills report production drops up to 60%, while dyeing and processing plants face severe output reductions, leaving downstream garment sewing lines idle at 50% to 70% capacity.
Captive power generators lack minimum gas pressure, forcing factories to rely heavily on expensive diesel generators—doubling overall utility operating costs amid fixed buyer contract prices.
Continuous-process industries like ceramics, glass, and steel face catastrophic risks; shutting down specialized kilns or furnaces causes hundreds of millions of Taka in structural thermal damage and long restart delays.
Small and medium enterprises (SMEs) face acute solvency risks due to unyielding overheads (labor wages, debt service, utility fees) paired with sharp revenue declines.
Industrial Sector | Gas Deficit Impact & Operational Status | Cost & Structural Risk Profile |
RMG & Textiles | Spinning output down 60%; sewing operating at 50%–70% capacity | Shift to diesel doubles utility costs; risk of buyer order cancellation |
Ceramics & Glass | High risk of thermal structural damage to kilns during pressure drops | Long restart timelines; multi-billion Taka capital loss threats |
Steel & Rebar | Furnace shutdowns and interrupted smelting runs | Increased cost per ton; construction supply chain bottlenecks |
Pharma & FMCG | Limited captive power generation; reliance on diesel backup | Increased production costs threatening retail price stability |
"No member factory formally declared permanent closure solely due to energy constraints," clarified Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
"Instead, managements adjusted production calendars around scheduled national holidays on August 5 and August 7 alongside worker requests. Factories are using off-peak windows to run dyeing units where possible to mitigate financial losses without cutting worker salaries."
"The current gas deficit must not be viewed merely as a temporary utility shortage—it poses a structural threat to Bangladesh's export competitiveness," stated Mohiuddin Rubel, founder & CEO of Bangladesh Apparel Voice and former BGMEA director.
"The entire textile value chain, from spinning and dyeing to garment assembly, depends on steady gas pressure. Interruption at any node destabilizes the entire lead-time schedule. Global apparel buyers prioritize supply chain predictability above all else. Delays risk damaging buyer confidence at a time when competing nations like Vietnam, India, Cambodia, and Indonesia are actively seeking market share."
"Large conglomerates can temporarily absorb diesel generator costs, but small and medium enterprises (SMEs) lack that financial cushion," added Mohiuddin Rubel.
"SMEs must maintain fixed labor, debt service, and facility overheads despite collapsing production volumes. The immediate priority must be expediting repairs at the Maheshkhali FSRU to restore industrial supply. Over the long term, Bangladesh must pivot away from over-reliance on imported spot LNG by investing aggressively in domestic onshore and offshore gas exploration alongside energy source diversification."
Strategic Measures to Address the Energy Emergency
To stabilize industrial production and prevent systemic economic fallout, industry leaders and energy experts recommend three immediate actions:
- Expediting technical repairs on the Maheshkhali FSRU terminal to restore ~500 MMcf/d to the national gas grid.
- Rerouting available natural gas reserves preferentially toward primary manufacturing and export-oriented industrial clusters.
- Shifting national energy policy away from volatile, imported LNG reliance toward domestic gas exploration and land-based LNG storage facilities.
