It's all too simple to think of a natural gas shortage as something that only affects power plants or large factories. But in Bangladesh, the shortage of LNG has a direct impact on the food on your plate.
Currently, five of the seven state-owned fertiliser plants in the country have been forced to close down because of a severe shortage of Liquefied Natural Gas (LNG). Without gas, these factories cannot produce urea and other essential fertilisers that farmers need to grow crops such as rice, potatoes, and vegetables.
How did things get so bad?
This problem did not happen overnight. Over the last few years, Bangladesh has produced less fertiliser at home and has bought more from abroad:
Fewer Factories Running: Out of seven state factories, only two are currently working. The rest shut down between March and June because they ran out of gas or imported raw materials.
- Not Enough Gas: Fertiliser factories need about 197 million cubic feet of gas every day to run fully. Lately, they have been getting only a third of that amount because gas is being diverted to power plants instead.
- Heavy Reliance on Imports: A few years ago, Bangladesh imported less than half of its fertiliser. Today, because local factories are shut down, the country has to import more than 83 per cent of all the fertiliser it needs.
Fertiliser supply breakdown
|
Source |
Share of Total Supply |
Status
|
|
Domestic Production |
17% |
5 of 7 state factories closed |
|
Foreign Imports |
83% |
Increasing strain on foreign currency reserves |
What does this situation mean for everyday people?
When domestic fertiliser factories close, the entire country feels the effects:
Drains National Savings: Buying fertiliser from abroad costs much more than making it at home. This wastes valuable foreign currency that could be spent on other important needs.
Higher Costs for Farmers: When fertiliser becomes scarce or expensive to bring into the country, local prices rise. Farmers end up spending much more money just to plant their fields.
Higher Food Prices for Everyone: If farmers cannot afford enough fertiliser, their crops will grow poorly, leading to smaller harvests. Smaller harvests mean less food in the markets, which drives up grocery prices for families across Bangladesh.
How can Bangladesh resolve this problem?
To protect farmers and keep food affordable, the government needs to take a few clear steps:
- Guarantee gas for factories: Fertiliser factories must be given a guaranteed supply of gas throughout the year so they never have to shut down unexpectedly.
- Fix up old factories: Many state-owned factories were built decades ago and waste energy. Repairing and updating old machinery will help them produce more fertiliser while using less gas.
Look for Local Gas Supply: Relying on imported gas leaves the country vulnerable whenever global prices jump or war breaks out overseas. Drilling for gas off the coast of Bangladesh is crucial for long-term safety.
The bottom line
A country cannot feed its people without a steady supply of fertiliser, nor can it produce fertiliser without gas. Ensuring that gas flows to domestic factories is not just an energy issue—it is about keeping food affordable and protecting the country’s future.
