Moheshkhali LNG Terminal Failure Triggers Widespread Gas Shortages in Bangladesh

The shortfall is no longer confined to the energy sector: CNG transport, household cooking, electricity generation and industrial production are all being hit. For businesses and commuters, the immediate risk is not simply higher cost but lost operating time — the economic equivalent of a team spending the match stuck in its own half.

The supply shock is reaching every link

CNG filling stations have been operating under near-zero pressure in many areas. Operators cited by The Daily Star said pressure had fallen to around 0–1 psi, compared with 7–8 psi previously. That has produced long queues for cars and CNG-run autorickshaws, with some drivers waiting for hours and receiving only a small amount of fuel.

The disruption has also affected public transport in Dhaka. A report carried by Social News XYZ said CNG-powered buses, auto-rickshaws and ride-sharing vehicles were spending hours waiting for fuel, leaving fewer vehicles on major routes and commuters facing delays. The affected corridors included Rampura, Badda, Airport Road, Banasree and Mirpur, while shortages were also reported on the Gulshan–Mirpur, Gabtoli, Shahbag, Airport and Sayedabad routes.

That matters beyond the daily commute. Vehicles completing fewer trips reduce fleet availability, while drivers still face owner payments and household expenses. For passengers, the practical consequence is a less predictable journey and pressure on transport costs. There is no tactical workaround when fuel supply is uncertain: changing routes helps only if vehicles are actually available.

Households are under pressure as well. The Social News XYZ report said gas pressure in parts of Dhaka had fallen close to zero, leaving stoves unusable or barely functioning. Some lower-income families reportedly turned to temporary clay stoves and firewood, while others used electric cookers or LPG cylinders, adding to household spending.

Factories are losing both gas and power

The industrial impact is sharper because many factories use gas for production and for captive power generation. When gas pressure falls, factories must either reduce operating hours, cut output or turn to more expensive alternatives such as CNG or diesel. But the fallback is unreliable: the same gas shortage has contributed to a power-generation shortfall that exceeded 3,000 megawatts for much of the reported day, according to Power Grid Bangladesh data cited by The Daily Star. Distribution companies consequently extended load-shedding across the country.

Narayanganj’s dyeing and garment sectors have been particularly exposed. Md Morshed Sarwar, senior vice-president of the Narayanganj Chamber of Commerce and Industry, said at least 85 dyeing and 65 garment factories had been directly affected. Some were receiving no gas, while others were operating with only 2–4 psi — far below the pressure required for normal production.

Reported production losses ranged from 40 percent to as high as 80–90 percent. Some factories continued limited operations to meet urgent export orders, but critical processes such as double dyeing and finishing had stopped in many cases. Unfinished goods were accumulating, delivery schedules were being disrupted and financial losses were mounting across the textile and garment supply chain.

This is the key economic problem: the shock is not being absorbed at one point. It is moving from the terminal to the grid, from the grid to factories, and from factories to delivery schedules and costs. A company may have an order, workers and machinery ready, yet still be unable to produce at normal capacity.

What businesses and readers should watch

The first indicator is gas pressure, not official reassurance. For CNG users, the relevant question is whether stations can refuel vehicles consistently rather than whether they are technically open. For factories, pressure levels and the reliability of grid electricity will determine whether production can continue, even at reduced capacity.

The second is how long unfinished output remains stuck. Textile and garment businesses can preserve some urgent orders through limited production, but the reported disruption to dyeing and finishing shows where the bottleneck is most severe. Delays at those stages can affect the wider supply chain even when some units remain operational.

The fault at Moheshkhali has therefore become a test of Bangladesh’s economic resilience. The country’s transport system, households and factories are competing for a supply that has already fallen sharply. Until gas pressure and electricity generation stabilise, switching fuels or extending operating hours will be expensive substitutes, not solutions.

The verdict is blunt: this is an infrastructure failure with a match-wide impact. Restoring supply is the immediate requirement; reducing the economy’s dependence on a single fragile chain is the next one.