Loadshedding surges as LNG shortage and unpaid bills hit power supply

The ongoing heatwave has intensified the loadshedding, especially in rural areas where people are experiencing power outages for 10 to 12 hours a day and severe disruption to daily life and industrial production. 

According to the Bangladesh Power Development Board (BPDB), a technical issue caused by a natural disaster has kept Summit’s LNG terminal offline for the past three months, limiting gas supply. 

This has reduced daily electricity production to between 14,000MW and 15,000MW, causing an average daily shortfall of 1,500MW.

In addition, an unpaid bill of Tk9,500 crore ($800 million) has led to a coal shortage, limiting Adani Group’s electricity supply to Bangladesh to 1,000MW. 

The supply from Tripura, India, has also dropped, with only 60-90MW being delivered per hour instead of the expected 160MW. 

Though 1,000MW was expected from India’s public and private sectors via the Bheramara link, only 880MW is currently being received.

The BPDB says the country currently requires around 16,500 megawatts of electricity daily, while the total production capacity stands at approximately 27,791 megawatts. However, on Tuesday evening, only 12,444MW was generated—falling short by 2,000MW—resulting in 2,060MW of loadshedding.

Compounding the issue, allegations of corruption have halted coal imports for the 1,200MW Matarbari power plant in Maheshkhali, Cox’s Bazar, reducing power output by 600MW. 

Power production at the S Alam power plant has also been limited.

The shutdown of the 525MW Barapukuria power plant due to technical issues has further exacerbated the problem, causing an additional shortfall of 280 to 285 megawatts, which could have supplied electricity to Dinajpur and two other districts. 

The plant is expected to be offline for another two weeks.

Khondker Mokammel Hossain, a BPDB member, told Dhaka Tribune: “On one hand, reduced LNG supply has led to a decrease of approximately 1,500MW of electricity production, and on the other hand, due to unpaid bills, we are receiving 500MW less electricity from Adani. The government has taken steps to settle the outstanding payments. While it may not be possible to pay off the entire amount at once, part of the dues will be paid in the coming days to restore full capacity.”

He further added that if the LNG supply could be increased, the crisis would be much easier to resolve. "We are not fully aware of what Petrobangla is currently doing."

However, regarding the import of LNG from the spot market, Khondker Mokammel Hossain said: "Even if we buy gas from the spot market, if the FSR unit (Floating Storage Regasification) is not operational, we won’t be able to receive the gas."

LNG imports to address loadshedding

Petrobangla sources report that the country’s daily gas demand is 3,800 million cubic feet, while 3,000 million cubic feet is currently being supplied. 

Through two floating terminals in Maheshkhali, Cox’s Bazar, 1.1 billion cubic feet of LNG were being supplied daily, but since May 27, the Summit terminal has been offline, reducing LNG supply to just 600 million cubic feet per day (mmcfd).

As a result, overall daily gas supply has dropped to 2,600 mmcfd, and gas supply to the power sector has fallen to 820 mmcfd. 

Only two and a half months ago, gas was generating up to 6,500MW of electricity; now, it produces just 5,000MW.

Petrobangla Chairman Zanendra Nath Sarker explained that gas supply from Summit’s terminal has been halted for almost three months, though the remaining gas will last another five to seven days. He expects the terminal to be operational within the next two days.

To solve the ongoing loadshedding crisis, he emphasized the need to purchase LNG from the spot market. 

The Petrobangla chairman said: “We hope to receive government approval within the next two days. Once approved, we will invite tenders. If we can secure 1,100 million cubic feet of LNG from the spot market, it will solve the issues in the residential, power, and industrial sectors.”

When asked why LNG purchases had not been made earlier, Zanendra Nath Sarker explained that the request for government approval had already been submitted. Once permission is granted, quotations will be invited.

On the timeline for resolving the loadshedding crisis, he said it is difficult to provide an estimate until the tenders are called. “The first few shipments might face some delays, but after that, everything will return to normal.”

Meanwhile, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan, during a meeting with World Bank acting Country Director Gayle Martin, said: "Hundreds of unnecessary projects were undertaken during the previous government’s tenure, including in the power and energy sectors. This has driven up costs and prices across both sectors."