Bangladesh gas crisis shuts fertilizer plants
Analysis based on 8 articles · First reported Aug 23, 2026 · Last updated Aug 23, 2026
The gas crisis disrupts Bangladesh's key export sectors, particularly garments and fertilizer, threatening foreign exchange earnings and food security. Reduced industrial output and power outages could dampen economic growth and increase import dependence, negatively affecting the country's trade balance and currency.
Bangladesh is facing a severe natural gas crisis that has forced the closure or reduced operation of six major urea fertilizer plants, including the state-owned Ashuganj Fertilizer Factory, which shut in March 2025. The shortage stems from declining domestic production due to underinvestment in aging fields and exploration, compounded by disrupted LNG imports caused by the US-Iran war and reduced traffic through the Strait of Hormuz. A floating storage and regasification unit also halted operations due to technical problems. The crisis has led to widespread power blackouts, factory shutdowns across industries including textiles, and household gas cuts, prompting protests from rickshaw drivers. The government has issued electricity-saving measures, plans to buy drilling rigs, and launched an offshore bidding round, while officials like Energy Minister Iqbal Hassan Mahmood blame the previous government of Sheikh Hasina for failing to drill new wells. Bangladesh — Petrobangla chairman Syed Abdul Mannan suggests renewable energy as the long-term solution.
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