Bangladesh Textile Sector Reels from Energy Insecurity Amid Supply Disruptions

The textile industry in Bangladesh is facing severe energy insecurity due to high costs and supply disruptions. The sector, which employs over 4 million people and produces around 80% of the country's exports, 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 its two LNG terminals last month cut supply to just over half of demand, according to data from state-owned oil and gas company Petrobangla.

The industry is considering alternative fuels such as biomass, but experts say this would compete with rural households that already use it for cooking. Dr. Laxmikant Jawale, regional lead for South Asia and Southeast Asia at the Apparel Impact Institute, said that biomass cannot be a sector-wide strategy and requires investment in boiler retrofitting and changing fuel handling.

Other solutions include installing electric boilers and heat pumps that could cut energy use by up to 45%. The government is being urged to provide support for the textile industry to adopt renewable energy and explore domestic gas fields to boost local supply.