Bangladesh Textile Industry Grapples with Gas Crisis Amid Reduced LNG Supplies
The textile industry in Bangladesh is facing a severe gas crisis due to a shortage of liquefied natural gas (LNG) supplies. The country's two LNG terminals are operating at half capacity, affecting around 4 million people employed in the sector that produces 80% of Bangladesh's exports and 13% of its GDP.
Qatar has announced it will slash LNG supply to Bangladesh due to Iran's actions in the Strait of Hormuz. A fire at one of the terminals last month further reduced capacity, forcing factories to operate at up to 40% below their usual levels.
Factories are now turning to more expensive compressed natural gas or diesel to meet urgent orders. Some companies, such as Plummy Fashions, are considering switching to electrification and alternative fuels like biomass. However, this would require significant investment in boiler retrofitting and infrastructure development.
Dr. Laxmikant Jawale from the Apparel Impact Institute notes that biomass is not a viable sector-wide solution, but rather a facility-by-facility option. Installing electric boilers and heat pumps could reduce energy use by up to 45%, but this would also require substantial capital investment.