Bangladesh Textile Sector Hit Hard by Gas Crisis

Bangladesh's textile industry is reeling from a gas crisis that has forced factory owners to seek alternative energy sources. The sector, which employs four million people and produces around 80% of Bangladesh's exports, relies heavily on gas for wet processing operations such as washing, dyeing, and finishing clothes.

The country's longstanding gas supply shortfall has been exacerbated by a fire at one of its two LNG terminals last month, which cut supply to just over half of demand. Qatar, a major exporter of Liquefied Natural Gas (LNG), has announced that it will slash supplies to Bangladesh due to Iran's near closure of the Strait of Hormuz and bombing of Qatari LNG export facilities.

Some factories have turned to compressed natural gas from roadside filling stations or diesel to fulfill urgent orders, but these alternatives are more expensive. Industry leaders are now considering switching to electrification and alternative fuels such as biomass, which would require significant investment in boiler retrofitting and infrastructure development.

Fazlul Hoque, managing director of Plummy Fashions, said the country cannot build future industrial investment on uncertain LNG supplies and repeated supply disruptions. He is considering switching to electrification and alternative fuels at his factory in Narayanganj, which employs over 1,000 people.