Social Crisis in Bangladesh Affects LNG Supply

The social crisis in Bangladesh has led to a drop in demand for energy and liquefied natural gas (LNG), significantly affecting natural gas consumption and power generation.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Ongoing social unrest in Bangladesh, which has forced factories and commercial establishments to close sporadically in recent weeks, is significantly reducing demand for energy and natural gas.
Petrobangla, the national energy company, has thus limited its purchases of liquefied natural gas on the spot market, according to market sources and available data.
Since the start of anti-government protests in July, consumption of gas, electricity and oil has fallen sharply.
Market players are also concerned about the long-term risks to energy supplies in this South Asian country.

Reducing electricity generation

Electricity generation in Bangladesh falls to around 11,000 MW as offices and factories close, compared with an overall generation capacity of 26,500 MW, according to the Bangladesh Power Development Board.
Natural gas supply falls to around 2.10 Bcf/d, including 600 MMcf/d of regasified LNG, from around 2.60 Bcf/d after one of the country’s two liquefied gas import terminals was taken out of service for repairs.

Impact on Natural Gas Purchases

A Bangladesh-based industry player reports that Rupantarita Prakritik Gas Co.
Ltd (RPGCL) is out of the LNG spot market due to weakened demand from current political tensions and sufficient gas supplies from long-term agreements.
RPGCL, Petrobangla’s liquefied gas supply arm, is also reducing its tendering activity due to the temporary unavailability of the FSRU Summit for repairs, which is due to be operational again on August 8.

Prime Minister resigns

Between January and May, RPGCL issued tenders for 23 spot LNG cargoes for deliveries up to June.
For July, only two tenders were issued for deliveries from July 15 to 19 and July 24 to 25, both delayed, and no tender was issued for August.
In other news, local media report the resignation of Prime Minister Sheikh Hasina and her departure from Bangladesh on August 5, accompanied by her younger sister Sheikh Rehana, for a destination in India.
The resignation was announced by Chief of Army Staff Waker-uz-Zaman after protesters stormed his official residence, according to the Dhaka Tribune.

Economic consequences

Bangladesh is experiencing waves of protests, curfews and violent crackdowns by government forces, impacting economic activity, particularly in the garment and textile mill sectors that have driven demand for electricity and gas in recent years.
Traders note that spot liquefied natural gas imports from Bangladesh are already commanding a premium due to payment risks, and this could increase if the political and social situation does not normalize quickly.
Prospects for improvement are limited as long as social unrest continues, threatening the country’s economic and energy stability.
The stakes for Bangladesh’s energy sector are therefore high, requiring both short- and long-term solutions to stabilize energy supply and demand.

Venezuela demands full financial compensation for any gas exports from the offshore Dragon field, reactivated following U.S. authorisation granted to Trinidad and Tobago.
Vistra Corp. finalises the purchase of seven natural gas power plants totalling 2.6 gigawatts, strengthening its presence in key US electricity markets.
Tidewater Midstream and Infrastructure has finalised the sale of its non-core Sylvan Lake site to Parallax Energy Operating for $5.5mn, with limited impact on its 2025 results.
U.S. gas deliveries to Mexico reached 7.5 billion cubic feet per day in May, driven by rising demand in the power sector and new cross-border interconnections.
The Algerian national company has restarted a key liquefaction unit in Skikda, strengthening its export capacity amid massive investment in the gas sector.
Doha and Washington warn Brussels about the consequences of EU sustainability requirements on liquefied natural gas exports, as the continent’s energy security remains under pressure.
The Volans-1X exploration well revealed a 26-metre productive zone in the Orange Basin, marking another hydrocarbon find for Azule Energy partners in 2025.
Faced with the absence of commercially viable results on the Guercif permit, Predator Oil & Gas has initiated a sale process while continuing technical evaluation of the gas potential.
According to the Oxford Institute for Energy Studies, a stable gas price of $6/MMBtu would boost global demand by 60 billion m³ in the short term and 120 billion m³ by 2035, mainly driven by Asia.
Kazakhstan’s Karachaganak gas field has reduced output by nearly one-third following an incident at a key Russian gas processing plant targeted by a Ukrainian drone strike.
Kinetiko Energy reports production levels above economic thresholds at two Mpumalanga wells, strengthening the technical viability and development potential of its liquefied natural gas project.
National Fuel Gas Company acquires CenterPoint Energy’s natural gas distribution business in Ohio, doubling the size of its regulated portfolio and expanding its footprint in the US Midwest.
The United States, Canada and Mexico together plan a 151% increase in liquefied natural gas export capacity, representing more than half of expected global additions by 2029.
European Union member states have approved the principle of a full ban on Russian natural gas imports, set to take effect by the end of 2027.
CMA CGM becomes the first international container shipping company to commission LNG-powered ships from an Indian shipyard, all to be registered under the Indian flag.
KLN strengthens its industrial project portfolio with progress on the WHPA platform in Libya, a major offshore site valued at over HK$10bn ($1.28bn), aimed at supporting regional gas supply.
US LNG producer Venture Global will report its Q3 2025 financial results before markets open, followed by a conference call for investors.
NextDecade confirmed a final investment decision for Train 5 at Rio Grande LNG, backed by full $6.7bn funding, marking its second decision in a month.
Sudan seeks partnership with Belarus to rehabilitate its energy grid amid prolonged humanitarian, economic and logistical crisis.
The Malaysian group launched three tenders to sell up to five liquefied natural gas cargoes in November and December, sourced from its Bintulu and PFLNG Dua facilities.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.