LNG disruptions expose risks in Bangladesh’s import-dependent energy system

A documentary by CLEAN highlights the financial burden of LNG infrastructure, limited backup capacity and the consequences of supply disruptions for workers and businesses.

A documentary has highlighted vulnerabilities in Bangladesh’s reliance on imported liquefied natural gas (LNG), warning that disruptions at key LNG facilities can create widespread impacts on electricity suppl, industrial production and workers’ livelihoods.

Titled “The LNG Chokepoint: Bangladesh’s Energy Security Under Strain”, the documentary by the Coastal Livelihood and Environmental Action Network (CLEAN) examines how incidents at the country’s floating LNG terminals in Moheshkhali have exposed weaknesses in the national energy system.

The film opens with footage of LNG carriers approaching Bangladesh’s coastline, followed by visuals of the Moheshkhali floating LNG terminals and the Matarbari power and port complex, highlighting the country’s growing reliance on large-scale fossil fuel infrastructure.

According to the documentary, a fire during a ship-to-ship LNG transfer operation at Moheshkhali disrupted operations at an LNG terminal, causing a sudden reduction in gas supply to the national grid.

Citing Petrobangla data, the documentary said gas supply dropped to around 2,170 million cubic feet per day (mmcfd) against demand of nearly 3,800 mmcfd following the incident. The disruption contributed to electricity shortages exceeding 3,750 megawatts, affecting industries and businesses.

The documentary also raised concerns over the financial burden of maintaining LNG infrastructure, stating that Bangladesh continues to pay capacity and terminal charges for two Floating Storage and Regasification Units (FSRUs), even when LNG is not being regasified.

Power cuts disrupt Old Dhaka workshops

The documentary focuses on workers in metal workshops in Old Dhaka, where frequent power interruptions have affected production and income.

Mohammad Hossain, a metal workshop worker on Tipu Sultan Road, said power cuts often stop his lathe machine during work.

“The electricity keeps going out. The lathe machine stops in the middle of work, and we do not know when it will restart. We do not have a generator. Without electricity, our work stops for the day and so does our income,” he said.

Another worker, Anis Rahman, who has spent nearly 45 years in metal factories, said power disruptions were affecting both factory owners and workers.

“Customers wait and then leave. Owners suffer losses, and our wages decrease. This situation has become regular,” he said.

Experts question energy system resilience

Monower Mostafa, a developmental economist and executive member of the Bangladesh Working Group on Ecology and Development (BWGED), said the Moheshkhali fire revealed the lack of reliable backup systems in Bangladesh’s energy sector.

“The fire in Moheshkhali has made one thing clear: Bangladesh’s energy system has virtually no reliable alternatives,” he said.

According to Mostafa, international financing institutions had previously identified management capacity and operational issues as risks associated with LNG infrastructure.

He said Bangladesh’s two LNG terminals have required significant financial commitments, adding that Petrobangla paid around US$1.14 billion in capacity charges over eight years for the facilities.

Rising cost of LNG dependence

Hasan Mehedi, chief executive of the Coastal Livelihood and Environmental Action Network (CLEAN), said Bangladesh’s increasing dependence on imported LNG was creating financial pressure.

“Bangladesh has to pay around US$454,000 per day in terminal fees for two FSRUs, even if LNG is not being regasified,” he said.

He added that Bangladesh spent approximately US$25.65 billion on LNG imports since 2018, while international financial support helped sustain the import-dependent energy model.

“The same guarantees could have supported affordable, decentralised and renewable energy expansion,” he said.

Debate over future energy strategy

The documentary also examines Bangladesh’s broader fossil fuel infrastructure, including the Matarbari Ultra Super Critical Coal-Fired Power Plant and the Matarbari Deep Sea Port.

It argues that continued investment in imported fossil fuels may increase economic pressure and leave consumers and workers vulnerable to global energy market shocks.

The film notes that the World Bank has approved additional financing support related to Bangladesh’s LNG sector in recent years, raising questions about the long-term sustainability of an import-dependent energy strategy.

CLEAN said the documentary aims to highlight the need for a more resilient, affordable and diversified energy system for Bangladesh.