Bangladesh's Gas Crisis Cripples Industries as Imports Dry Up

Bangladesh is facing a severe gas crisis that has crippled industries, homes, and transport. The country's largest fertilizer factory, Ashuganj, has been shut down since March 2025 due to lack of natural gas. According to Md Bazlur Rashid, who spent his entire working life at the factory, it has 'lost its life'.

Five other major urea fertilizer plants have also been forced to close or restrict operations due to gas shortages. This has resulted in job losses for thousands of workers and threatens an industry crucial to food security. Trade union leader Md Abu Kawsar warned that reviving the factories could help save foreign currency.

The consequences of the gas shortage extend beyond fertiliser production. Hundreds of factories, including textile plants, are cutting production or shutting down. Bangladesh is the world's second-largest garment exporter, accounting for about 80% of its export earnings. At home, domestic piped gas is often cut off, leading to power outages and blackouts.

Energy Minister Iqbal Hasan Mahmud Tuku blamed the previous government for failing to invest in exploration and drilling new wells. Experts say that Bangladesh was once self-sufficient in natural gas but production declined as older fields depleted. The country now relies heavily on imports, which have been disrupted by the US-Iran war.

The government is investing in terminals to expand imports and continuing LNG orders. However, experts call for more domestic exploration to increase gas production. Bangladesh has offshore gas fields that require new wells to be drilled. Drilling a single well can cost up to $16 million but could recover $4.5-$4.9 billion in value.

Petrobangla chairman Md Abdul Mannan said the ultimate answer lies in turning to renewable energy, which he estimates could take two years to achieve.