LNG Shortage Deepens Amid Questions Over RPGCL Management

Bangladesh is facing a fresh round of gas shortages after a floating liquefied natural gas terminal was forced to shut down amid difficulties in securing scheduled LNG cargoes. Officials and industry insiders have blamed what they describe as poor management and a lack of coordination at the state-owned Rupantarita Prakritik Gas Company Limited (RPGCL), the agency responsible for LNG imports, unloading and oversight of floating storage and regasification units (FSRUs).

RPGCL operates under Petrobangla and plays a central role in managing Bangladesh’s growing dependence on imported LNG. According to people familiar with the situation, one LNG cargo had to be returned because it could not be unloaded, while another scheduled cargo could not be brought into the country on 17 August. The disruption has reduced gas availability by around 550 million cubic feet a day, putting additional pressure on an already strained supply system.

The latest deterioration became apparent on 19 August. Those involved in the sector say the shortage is unlikely to ease substantially until another LNG cargo arrives. A cargo is expected around 23 August, although the timing of its arrival and the subsequent restoration of supply will determine how quickly the situation improves.

The developments have raised questions over the role of RPGCL and its management. Some officials and sector insiders have held the company’s Managing Director, Engineer Md Anwarul Islam, and his team responsible for the latest disruption. A few have also called for an investigation into whether any deliberate attempt was made to disrupt LNG supplies. There is, however, no confirmed evidence presented publicly to substantiate such an allegation.

An official at Petrobangla said the two FSRUs are operated under its supervision. One of the terminals was damaged in a fire on 21 July, but questions have since been raised over whether RPGCL provided sufficient information to the ministry and Petrobangla about the developing situation.

Another issue concerns an LNG cargo sourced from Saudi oil giant Aramco. According to the official, the cargo was considered old and potentially risky, and US-based Excelerate Energy declined to unload it. The cargo was subsequently sent back. The official alleged that the concerns surrounding the cargo were known before the decision was taken to bring it to Bangladesh.

Questions have also been raised over the procurement process for another LNG shipment. According to the allegations, an order was placed with a preferred contractor instead of the regular contractor, but the selected supplier ultimately failed to deliver the cargo. Critics argue that RPGCL cannot avoid responsibility for the consequences of such decisions.

Attempts were made to obtain a response from RPGCL Managing Director Engineer Md Anwarul Islam. He did not answer telephone calls, and no return call was received. A message sent to his mobile phone also went unanswered.

The latest disruption comes after Bangladesh had already been struggling with reduced gas supplies. Following the fire that damaged an FSRU on 21 July, national gas availability fell to roughly 2.1 billion cubic feet a day. The reduction triggered severe shortages across the country, affecting households as well as industries and power-related operations.

Partial supply resumed on 6 August, bringing some improvement. The situation, however, began deteriorating again from 13 August as LNG availability tightened. By 19 August, the FSRU operated by Excelerate Energy had stopped receiving and supplying LNG because of the shortage.

The impact is being felt across different parts of the economy. Lower gas pressure has affected household cooking in some areas, while industrial boilers and other gas-dependent operations have also come under pressure. For manufacturers, an unreliable gas supply can disrupt production schedules and increase operating difficulties. Households, meanwhile, are facing growing frustration as supply becomes uncertain.

The immediate problem is compounded by a longer-term decline in domestic gas production. Bangladesh once produced around 2.8 billion cubic feet of gas a day from its own fields. Current domestic output has fallen to about 1.626 billion cubic feet a day. Declining reserves in mature gas fields have contributed to the steady reduction.

The production decline at Bibiyana, one of the country’s major gas fields, is particularly concerning. The field still accounts for roughly 45.5 per cent of domestic gas supply and around 68 per cent of condensate production, according to the figures cited by officials. Its output, which was once around 1.35 billion cubic feet a day, had fallen to approximately 738 million cubic feet on 20 August.

That decline illustrates the structural challenge facing Bangladesh’s gas sector. Domestic production is falling as mature fields lose pressure and reserves, while imported LNG has become increasingly important to maintaining overall supply. Any disruption in LNG procurement, shipping, unloading or regasification can therefore have an immediate effect on consumers.

The current crisis is consequently not limited to a single failed cargo. It reflects the growing vulnerability of a supply system that is being squeezed from both sides: domestic gas production is declining, while imported LNG is becoming increasingly important.

With another cargo expected around 23 August, attention is now focused on how quickly the terminal can resume normal operations and whether supply can be stabilised. At the same time, the questions surrounding procurement decisions, cargo selection, communication and FSRU management are likely to remain under scrutiny as authorities seek to prevent another disruption.