Interim government in limbo over gas import and supply

Staff Correspondent

Various quarters have expressed concern that the country’s gas supply system is heading towards a major disaster. The situation has been further complicated by the interim government (Yunus government) giving a long-term order to Accelerate Energy (a US company associated with Peter Haas) for the sole supply of large LNG without having other alternative sources or backup arrangements.

In addition, overall mismanagement, import delays, weather-related disruptions, and failure to purchase cargo on time despite low spot market prices have led to extreme shortages in gas supply to industries, power plants, and fertilizer factories.

According to the 15-year contract (starting from January 2026) with Qatar’s Accelerate Energy, there is a plan to supply 0.85 million tons per year in 2026-27 and 1 million tons thereafter. But instead of bringing LNG under that contract, LNG is being brought from the United States based on an agreement with Peter Haas, which is also more expensive and takes much longer due to the distance of transportation.

Analysts believe that this single-dependence and distance are risky. If the operation of the Floating Storage and Regasification Unit (FSRU) is disrupted due to weather conditions (such as storms or rough seas), the entire supply chain will collapse.

Recent delays at the Maheshkhali terminal have reduced gas supply to the national grid to 2,500-2,600 mmcfd (demand is over 3,800 mmcfd).

Meanwhile, despite the record low spot price of LNG in the global market ($9-10/MMBtu), the government has failed to purchase cargoes on time. As a result, the production of fertilizer factories (BCIC) is being disrupted, which has created fears of a fertilizer shortage in the upcoming Boro season. Production in the industrial sector is stalling due to reduced gas pressure, and there have been allegations of load shedding and reduced production in other industries including garments.

Internal sources in the Department of Energy say that after the deal was signed with Peter Haas’ (former US ambassador, currently strategic advisor to Accelerate) company, alternative terminal or supply contracts from other potential suppliers (such as India’s H-Energy or others) were canceled or suspended.

One of the two new floating LNG terminals, Summit, has been shut down in court. And the one awarded to US company Accelerat, which was only at the MOU stage, has also been cancelled.

Economists and energy experts have warned that if this mismanagement continues, there will be a bigger crisis to meet winter demand. There have been demands for the government to quickly find alternative sources, buy cargo from the spot market, and make the process of importing LNG transparent and diverse. Otherwise, this gas supply disaster will have a deeper impact on the economy and public life.