Gas Crisis Paralyses Hundreds of Factories, Puts Bangladesh’s Garment Sector on Edge
Bangladesh’s industrial heartland is once again choking under a severe natural gas shortage.
Hundreds of factories – particularly in Gazipur, Ashulia, Savar, Narayanganj and surrounding areas – have either suspended operations or are running at a fraction of capacity.
The ready-made garment (RMG) and textile sectors, the backbone of the country’s export earnings, are among the hardest hit.
The immediate trigger is the disruption at Excelerate Energy’s floating storage and regasification unit (FSRU) at Moheshkhali.
A fire and subsequent mechanical damage in late July sharply reduced LNG supply to the national grid by an estimated 450-500 million cubic feet per day.
Daily national gas availability has fallen well below demand, leaving industrial areas with critically low or zero pressure.
Ripple Effect Beyond Factories
The gas shortage is not limited to factories. Households across the country are also facing severe cooking gas scarcity, forcing many families to rely on costly alternatives like LPG cylinders or electric stoves, which in turn are pushing up food prices and daily living expenses.
Impact on the Garment and Textile Chain
Industry bodies BGMEA and BKMEA have formally written to the government
seeking temporary permission for export-oriented factories to procure compressed natural gas (CNG) from filling stations.
They argue that gas pressure in many industrial units has dropped to zero PSI, making it impossible to meet international buyers’ delivery schedules.
Titas Gas has so far resisted unrestricted cylinder supply on safety and regulatory grounds. The human and financial cost is mounting.
Workers in affected factories are being asked to stay home or work reduced hours while employers continue to bear fixed costs, including wages and bank interest.
Industry leaders warn that prolonged disruption could lead to cancelled orders and loss of market share at a time when global demand remains soft.
Government’s Recovery Plan
The government’s immediate priority is the swift repair of the Excelerate terminal, with full restoration expected around 8-10 August.
In parallel, authorities are exploring emergency LNG imports and considering limited CNG supply arrangements for export factories under strict safety protocols.
In the medium term, Bangladesh needs faster progress on additional FSRU capacity, greater domestic exploration, and a clearer industrial gas allocation policy that balances the needs of power, fertiliser and manufacturing.
Without credible and sustained energy security, new investment in textiles and garments will remain hesitant, and existing factories will continue to operate under a cloud of uncertainty.
A National Imperative
The current crisis is a stark reminder: Bangladesh’s economic success story still rests on a fragile energy foundation.
Protecting the garment sector today is not merely an industry demand – it is a national economic imperative.
