Excelerate LNG Terminal Depleted, Severe Gas Supply Deficit Hits National Grid

Bangladesh’s energy grid faces a fresh setback as operations at Excelerate Energy’s Floating Storage and Regasification Unit (FSRU) came to a complete halt on Wednesday afternoon following the total exhaustion of its Liquefied Natural Gas (LNG) reserves. The unexpected shutdown has exacerbated an ongoing supply deficit, forcing the nation to rely almost entirely on the country’s second operational FSRU, managed by Summit Group, until fresh shipments dock at Maheshkhali.

Operational Disruptions and Grid Depletion

Data released by Petrobangla, the national oil and gas corporation, reveals a sharp decline in distribution capacity within a span of six hours. At midday on Wednesday, total gas injection into the national transmission line stood at 2,289 million cubic feet per day (MMcf/d), comprising 1,628 million cubic feet from domestic gas fields and 661 million cubic feet of re-gasified LNG from the twin off-shore terminals.

By 6:00 PM, total throughput dropped to 2,189 MMcf/d, recording a direct deficit of 100 million cubic feet. Officials from Rupantarita Grammeen Power Company Limited (RPGCL), a subsidiary of Petrobangla responsible for LNG imports, confirmed that Excelerate’s terminal exhausted its remaining reserves by 2:40 PM, severing its feed to the national pipeline network. Summit’s terminal remains functional, currently discharging approximately 560 MMcf/d into the pipeline to prevent a complete system collapse.

Technical Missteps and Supply Chain Bottlenecks

The immediate cause of the shutdown stems from a complex mix of technical delays and cargo scheduling failures. According to senior industry sources, Excelerate Energy initially requested a 72-hour operational pause to execute necessary repairs on the terminal’s boiler system. Although technical teams resolved the boiler issue ahead of schedule, the temporary pause disrupted the delicate alignment of incoming vessel arrivals. By the time the terminal was ready to resume regasification, the planned LNG cargo had failed to arrive on schedule, leaving the facility devoid of feedstock.

This mismatch in vessel logistics highlights the broader vulnerabilities within the national energy procurement strategy. Delays in spot market purchases and long-term contract deliveries frequently leave local infrastructure idle, driving up operational overheads and exposing domestic industry to sudden supply shocks.

Economic Fall-Out and Approaching Deadlines

Energy analysts warn that the prolonged pause in processing capacity will force the government to procure emergency spot cargoes at elevated prices to plug the deficit. Industrials, power generation plants, and fertilizer factories across the country are already bracing for reduced pressure and supply rationing. The current supply strain is expected to persist until at least 23 August, when the next scheduled LNG vessel is slated to anchor. Any further delay in cargo arrival risks stretching grid stability to breaking point, leaving domestic manufacturing hubs heavily reliant on emergency measures.