Bangladesh Textile Industry Reels from Energy Crunch

Bangladesh's textile industry is struggling with energy insecurity due to high costs and supply disruptions. The sector employs around 4 million people, producing about 80% of the country's exports and 13% of its GDP.

The industry relies heavily on gas for wet processing operations such as washing, dyeing, and finishing clothes. However, Bangladesh has a longstanding gas supply shortfall due to local production falling and import costs rising.

A fire at one of the country's two LNG terminals last month cut supply to just over half of demand, according to data from state-owned oil and gas company Petrobangla. As a result, many factories are operating at up to 40% below capacity.