Gas crisis forces factories to shut

Bangladesh’s worsening gas crisis is severely disrupting industrial production across major manufacturing hubs, forcing factories to suspend operations, cut output and rely on expensive alternative fuels.

The impact has been particularly acute in Narsingdi and Gazipur, where textile, dyeing, spinning, garment and other gas-dependent industries are struggling with pressure levels far below operational requirements.

In Narsingdi, production has completely stopped at more than 100 small and large factories in recent days as gas pressure fell to as low as zero in some areas.

Industries there normally require around 15 PSI of gas pressure, but factory owners said supply had dropped to just two to three PSI before falling further.

The district is home to more than 3,000 factories and accounts for around 70 percent of Bangladesh’s domestic cloth supply, according to industry representatives.

Industrialists estimate that the disruption is causing losses of between Tk 400 crore and Tk 500 crore a day in Narsingdi alone.

Several textile, sizing and dyeing factories, including Abed Textile Mills, Bhuiyan Textile and Calendar Mills, Anwar Printex and others, have either halted production or significantly reduced operations.

Abdullah Al Mamun, managing director of Abed Textile Mills, said production at the factory had remained suspended for around 20 days.

Workers have instead been assigned maintenance and cleaning duties while regular production remains closed.

Industry leaders said the crisis had worsened as gas consumption increased at the Ghorashal-Palash Urea Fertilizer Factory, which is now operating at full capacity.

They claim the increased allocation to the fertiliser plant has reduced gas availability for surrounding industries.

Titas Gas officials, however, have also attributed the supply disruption to a technical fault at an LNG terminal that reduced pressure across Narsingdi and neighbouring districts.

Gazipur factories operating below capacity
The situation is similarly severe in Gazipur, one of the country’s largest export-oriented manufacturing centres.

The district has around 2,500 registered export-oriented garment factories, including more than 400 that depend entirely on gas.

Textile, dyeing, finishing, denim, knitting and woven factories generally require around 7–8 PSI to operate normally, but pressure at many units has dropped below 2 PSI, with some recording almost no gas supply.

Gazipur’s industrial sector requires around 550 million cubic feet of gas per day, but currently receives only about 300 mmcfd, leaving a shortfall of roughly 250 mmcfd, or 45 percent of demand, according to industry and Titas Gas sources.

Factories have increasingly turned to diesel generators to maintain production schedules, raising production costs by around 30 percent.

Dyeing operations at Divine Group and a textile factory of Sadma Group have already been suspended, while other units are operating at reduced capacity or facing temporary closures.

More than 200 small and subcontracting garment factories in Gazipur recently sent workers on three days’ leave because of inadequate gas supply.

Industrial areas in Savar, Ashulia and Narayanganj have also been affected.
According to BGMEA members, garment factories are currently operating around because of inadequate gas and electricity supplies.

Export-oriented manufacturers warn that repeated energy disruptions could delay shipments, increase production costs and undermine Bangladesh’s ability to meet buyers’ delivery schedules.

Speaking to The New Nation, BGMEA President Mahmud Hasan Khan said the current crisis was the result of long-standing weaknesses in energy planning rather than a sudden disruption.

He called for greater LNG import and regasification capacity, including three to four floating storage and regasification units, so that a technical failure at one facility does not disrupt the wider gas network.

He also suggested developing land-based LNG terminals as part of a longer-term solution.

Industry leaders are also urging greater use of renewable energy. Mahmud noted that around 1.2 million irrigation pumps currently run on diesel and said converting them to solar power could free up electricity for industries while reducing diesel imports.

Manufacturers warn that unless gas and power supplies improve quickly, more factories could be forced to suspend operations, threatening exports, employment and industrial growth.