Textile Giants Face Energy Crisis as Bangladesh's Gas Supplies Dwindle

Bangladesh's textile sector is facing severe energy insecurity due to high costs and supply disruptions. The industry, which employs 4 million people and produces 80% of Bangladesh's exports and 13% of its GDP, relies heavily on gas for wet processing operations. However, Qatar has announced it will slash LNG supplies to Bangladesh due to the Iran conflict, further exacerbating the issue.

The recent fire at one of Bangladesh's two LNG terminals has cut supply to just over half of demand, forcing factories to operate at 40% below capacity or switch to more expensive fuels like compressed natural gas and diesel. Industry leaders are now exploring alternative energy sources, including electrification and biomass.

However, experts warn that biomass cannot be a sector-wide solution due to the country's underdeveloped logistics and infrastructure for aggregating industrial-scale biomass. Instead, they recommend installing electric boilers and heat pumps, which could cut energy use by up to 45%. The government is urged to step up support for the industry to adopt renewable energy and explore domestic gas fields.