KEY TAKEAWAYS:
- The Bangladesh Energy Crisis 2026 began on 21 July, when a fire disabled the Excelerate FSRU at Moheshkhali and cut about 450 mmcfd of imported LNG from the grid.
- Demand of 3.8–4.0 bcfd persistently exceeds achievable supply of 2.6–2.7 bcfd, so even a full terminal recovery would not close the gap.
- Garment output ran at roughly 40 percent of normal through late August, with over 900 of about 1,800 BTMA member mills shut at the mid-August peak.
- Constrained gas availability is expected to persist through at least Q4 2026, and plausibly into 2027.
The Bangladesh Energy Crisis 2026 is a nationwide natural gas emergency that began on 21 July 2026, when a fire aboard the Excelerate floating storage and regasification unit at Moheshkhali removed roughly 450 mmcfd of imported LNG from the grid and cut national pipeline supply by more than 17 percent.
Why is Bangladesh’s gas supply so fragile?
The country imports LNG through just two floating terminals while its domestic gas base depletes. Petrobangla data show domestic output fell 28 percent between FY2018-19 and FY2024-25 while imported LNG rose 143 percent, taking imports from 11 to 29 percent of supply.
Which sectors are worst affected?
BGMEA estimates energy costs rose from around 10 percent to over 25 percent of garment production costs, with diesel prices roughly tripling. Cement output at one major plant fell below a sixth of capacity, ceramics kilns received 0–3 psi against a 15-psi requirement, and CNG pressure fell from 7–8 psi to as little as 0–1 psi. Power generation shortfall exceeded 3,000 MW on peak days.
What is the financial exposure?
Around USD 69 billion of textile, accessories and garment-sector investment is exposed to disruption. Bangladesh’s LNG import bill reached about USD 3.88 billion in 2025 and is set to rise as spot purchases replace cheaper contracted volumes from Qatar and Oman.
How long will the crisis last?
Plan for constrained gas through at least the fourth quarter of 2026 and plausibly into 2027. A third FSRU at Kutubjom and the land-based Matarbari terminal are the medium-term fixes, but both are expected to take twelve months to several years.
What should businesses do now?
Garment operations in Narsingdi, Gazipur, Ashulia and Narayanganj should build two-to-four-week production and shipment buffers. Power-intensive manufacturers should test dual-fuel generators, secure diesel or LPG contracts in advance, and hold critical spares for boilers and compressors.
Frequently asked questions
What caused the Bangladesh Energy Crisis 2026?
The Bangladesh Energy Crisis 2026 began when a fire during a ship-to-ship LNG transfer disabled the Excelerate FSRU at Moheshkhali on 21 July 2026, cutting about 450 mmcfd from the grid.
How is the crisis affecting Bangladesh’s garment industry?
Garment output ran at roughly 40 percent of normal nationwide through late August, and energy now exceeds 25 percent of production costs at some factories.
When will Bangladesh’s gas supply return to normal?
Not soon. Structural demand of 3.8–4.0 bcfd exceeds achievable supply of 2.6–2.7 bcfd, so constrained availability is expected through at least the fourth quarter of 2026.
Download the full report now
The Bangladesh Energy Crisis 2026 special report from MitKat Advisory Services and datasurfr carries the full chronology, sectoral impact assessment and recommendations. Download the full report now to brief your supply-chain and operations teams.
Filed under: India-South AsiaThreat Intelligence Special Reports