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Bangladesh Gas Crisis Exposes LNG Logistics and Concentration Risks

Bangladesh Gas Crisis Exposes LNG Logistics and Concentration Risks
Bangladesh gas crisis highlights logistics weakness, concentration risk: Report · thehansindia.com

Bangladesh does not currently have enough gas to meet its needs.

In mid-August, it had about 2,420 million cubic feet per day, while demand was about 3,800 million.

This shortage affected factories, fuel stations, homes and power plants.

Much of Bangladesh’s imported gas arrives as LNG.

The LNG must travel through ships, terminals, pipelines and distribution networks before reaching users.

One floating terminal operated by Excelerate Energy stopped working after a fire and technical problems.

Bad weather also delayed unloading at another terminal, and stored LNG ran out.

The report says these problems showed that Bangladesh relies too heavily on two nearby terminals.

It also said declining domestic gas production makes the country more exposed to global prices, foreign exchange needs and shipping disruptions.

Key facts

Gas availability
About 2,420 million cubic feet per day in mid-August
National demand
About 3,800 million cubic feet per day
Estimated shortfall
About 1,380 million cubic feet per day
Main infrastructure
Two floating storage and regasification units off Moheshkhali Island
Share of gas needs
The two FSRUs supply an estimated 30–37% of national gas demand
Key outage
Excelerate Energy’s FSRU went offline after a fire and technical problems
Additional disruption
Weather-related unloading delays left terminal inventories exhausted

Quotes

The Daily Star

Bangladesh-based newspaper cited as the source of the report

“Excelerate’s terminal later also exhausted its LNG inventory while waiting for its next cargo. These were separate incidents, but together they exposed the same weakness: the country’s LNG supply chain does not have enough redundancy”
thehansindia.com
“A port operator would hesitate to route a critical share of national trade through only two pieces of infrastructure located at essentially the same gateway”
thehansindia.com

Sources

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