Bangladesh Gas Crisis Halts Fertilizer Factories, Leaves Thousands Jobless
Bangladesh is facing a severe natural gas crisis that has shut down several major fertilizer factories and left thousands of people without jobs.
The crisis, which began in March 2025, has been caused by a decline in production due to underinvestment in aging fields and exploration, as well as disruptions to imports from the Middle East. Six urea plants have closed or reduced output, including the Ashuganj fertilizer factory, which employed over 1,200 people.
The shutdowns have not only affected workers but also threatened food security in a country of 170 million people. Bangladesh is one of the world's largest exporters of garments, and the textile industry accounts for about 80% of its export earnings. Power plants that burn gas to generate electricity are struggling to meet demand, leading to regular blackouts.
The government has launched measures to alleviate the crisis, including ordering shopping malls to close an hour earlier to save energy. However, experts say a long-term solution requires investing in domestic exploration and drilling new wells. Bangladesh has offshore gas fields, but this process takes time and is costly, with a single well costing $12 million to $16 million to drill.