Bangladesh closes its fertiliser factories due to Middle East gas shortage
Officials said that Bangladesh closed four of its five fertilizer factories on Thursday, amid a worsening shortage of gas triggered by the escalating tensions across the Middle East.
A government order aimed to conserve dwindling supplies of gas has halted production at several state-run 'plants, including Karnaphuli Fertilizer Company Limited and Chittagong urea Fertilizer Limited.
Uttam Chowdhury is CUFL's Chief Chemist and Head of Production. He said that the two facilities were receiving between 70-80 millions cubic feet of natural gas each day prior to the shutdown.
He said, "Production will resume as soon as the gas supply is restored."
Qatar stopped LNG production earlier this week. Hostilities with Iran disrupted oil shipments and freight through the Strait o 'Hormuz.
Bangladesh, a nation that relies heavily on imported LNG, has seen its supply?tightened by the turmoil.
CUFL's daily capacity is 1,100 tonnes urea and 800-tons ammonia. To operate at maximum capacity, 48-52 millions cubic feet of natural gas are required.
Officials warn a prolonged shut down could force the country to import urea for significantly higher prices.
Bangladesh has issued an tender to procure two LNG cargoes that will be delivered?in March 2026.
The Ministry of Power, Energy and Mineral Resources is urging government agencies, institutions and private households to adopt immediate energy saving measures. The ministry has called for a reduction in household gas consumption, a check for pipeline leaks and a greater reliance on public transport.
Officials warned that "continued instabilities" in the key energy exporting regions could disrupt electricity generation, slow down industrial production, and pose greater risks to energy security.
(source: Reuters)
