The Bangladeshi government is implementing targeted energy cuts to mitigate disruptions in fuel and electricity supply, as domestic gas production fails to keep pace with increasing demand. These measures affect industrial users and power plants critical to national infrastructure.
- 15% gas cut for large industrial users starting April 1, 2026
- 20% reduction for gas-dependent power plants
- Domestic gas output down 9% in Q1 2026
- Electricity demand up 11% year-on-year
- 12% reduction in national gas use expected by Q2 2026
- Emergency LNG shipment of 500,000 tonnes due in May 2026
Bangladesh is preparing to enforce energy rationing across key industrial zones and power generation facilities due to a growing gap between domestic gas supply and rising consumption. The National Energy Committee has approved a phased reduction in natural gas allocations, starting April 1, 2026, with a 15% cut for large manufacturing units and a 20% reduction for combined-cycle power plants reliant on imported liquefied natural gas (LNG). The decision follows a 9% drop in domestic gas output from the Sangu and Bibiyana fields in the first quarter of 2026, according to state energy reports. Meanwhile, electricity demand rose 11% year-on-year, driven by industrial expansion and hot weather. Power plants such as the 600 MW Ashuganj Thermal Station and the 1,200 MW Payra Power Plant are now operating below capacity due to insufficient fuel supplies. The government has also initiated a temporary suspension of gas supply to non-essential sectors, including commercial cooling systems and private construction projects. These measures are expected to reduce national gas consumption by approximately 12% in the second quarter. The State Bank of Bangladesh has warned that prolonged disruptions could slow GDP growth by up to 0.8 percentage points in 2026. Affected industries include textiles, where 18 major mills have already reported production delays, and fertilizer manufacturers, including BANGLADESH FERTILIZER CORPORATION, which operates under a government-mandated supply quota. The Ministry of Power, Energy, and Mineral Resources is exploring emergency LNG imports through the Matarbari terminal, with a 500,000-tonne shipment scheduled for delivery by mid-May.