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Why Is Bangladesh Turning To India For Diesel As Its Power Crisis Deepens?

Bangladesh is facing a worsening power crisis after disruptions at the Moheshkhali LNG terminals cut gas supplies to power plants, prompting the country to seek additional diesel supplies including from India

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Summary
  • Bangladesh's gas-fired power plants are receiving far less gas than required, resulting in a nationwide electricity shortfall and load shedding

  • The gas shortage followed disruptions at the Moheshkhali LNG terminals, which reduced supplies of regasified LNG to the country's energy network

  • Bangladesh has turned to alternative diesel supplies, including from India and China, as it seeks to maintain fuel stocks and manage the wider energy crisis

Bangladesh is turning to India for diesel supplies amid the country's ongoing natural gas shortage, which is putting pressure on Dhaka's power sector. The situation has prompted authorities to impose an 8 pm shutdown for shopping malls, shops and other commercial establishments.

The measures come as the country struggles to maintain electricity generation amid reduced gas availability, while the wider energy crunch has been aggravated by disruptions linked to the ongoing US-Iran conflict.

Earlier, Indian High Commissioner to Bangladesh met Bangladesh's Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood to discuss cooperation in the power and energy sectors.

During the meeting, they also discussed views on further strengthening India–Bangladesh cooperation in the power and energy sectors.

Why Is Bangladesh Facing A Power Crisis?

The electricity crisis stems from fuel shortage, Dhaka Tribune reported. Gas supplies were severely disrupted following problems at the LNG terminal in Moheshkhali after July 21. Gas-fired power plants require around 2,524 million cubic feet of gas a day, but received only 744 million cubic feet on Tuesday.

On Tuesday, peak demand stood at 18,975MW, but only 15,833MW could be supplied, leaving a shortfall of 3,142MW. The issue has resulted in load shedding across the country, from rural to urban areas.

Amid this issue, Trivedi met Mahmood on August 6. In a post on X (formerly Twitter), Indian High Commission in Dhaka said, “The discussion focused on the importance of cross-border power and energy connectivity as a key pillar of India–Bangladesh economic partnership.”

Trivedi also held talks with Prime Minister of Bangladesh, Tarique Rahman on August 10. "They exchanged views on matters of mutual interest and discussed avenues for further strengthening bilateral relations between India and Bangladesh with a people-centric approach," wrote the Indian High Commission in Bangladesh on X.

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Why Is Bangladesh Seeking Diesel From India?

Bangladesh faced a sharp drop of around 450 million cubic feet per day (MMcfd) of regasified Liquefied natural gas from Moheshkhali LNG terminals in Cox’s Bazar due to technical glitch, BD News reported. The company said earlier that until the situation improves, those who avail the services of the Titas Gas distribution network would bear the brunt of low gas pressure.

As per the report, the company did not specify any estimate by when the normal supply would be restored. It maintained opacity on the question of the nature of the technical problem, or which exact terminal was faulty and when the disruption began. It said that the glitches reduced the supply of Regasified Liquefied Natural Gas (RLNG).

Bangladesh, which imports nearly 95% of its energy needs and relies heavily on Middle Eastern supplies, has already faced challenges including panic buying, temporary rationing at fuel stations, and higher spot market prices for LNG and other fuels.

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The country recently secured alternative diesel supplies from sources like China and India to maintain stocks for about a month, while seeking international financing to cushion the energy shock.

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