Bangladesh Textile Industry Hits by Energy Crunch Amid Gas Supply Disruptions

Bangladesh's textile industry is facing significant challenges due to an energy crunch, with high costs and supply disruptions affecting production. The sector employs around 4 million people and accounts for about 80 percent of Bangladesh's exports and 13 percent of its GDP. However, the industry relies heavily on gas for its wet processing operations, and a fire at one of the country's two liquefied natural gas (LNG) terminals last month further exposed energy insecurity. Qatar has announced that it will slash LNG supplies to Bangladesh due to Iran's near closure of the Strait of Hormuz.

As a result, many factories are operating below capacity, with some using more expensive compressed natural gas or diesel to meet urgent orders. Industry leaders are calling for energy security and predictability in supply, rather than piecemeal firefighting. One solution being considered is electrification and alternative fuels such as biomass, but this would require significant investment and infrastructure development.

A study by the Apparel Impact Institute suggests that installing heat pumps could reduce energy use by up to 45 percent, but this would also require large-scale capital investment. Meanwhile, some factories are turning to renewable energy sources, with rooftop solar panels and batteries being installed at several plants.