A severe gas shortage has brought much of the country’s industrial sector to a standstill, with some factories completely shut and others operating at half capacity.
The situation has worsened as electricity shortages have compounded the gas crisis. Steel, cement, glass, textiles, dyeing, spinning, garments and essential goods processing industries are among the worst affected.
The crisis, now in its fourth week, intensified on Wednesday when gas supply to the national grid fell to around 2.03 billion cubic feet (bcf), against daily demand of about 3.85 bcf, leaving a shortfall of around 1.77 bcf.
Industrialists warn that prolonged disruption could hurt production, employment and exports, with international orders and timely shipments facing the biggest risks.
Factories shut across industrial hubs
All 57 factories of Meghna Group have been shut since the night of August 10 due to the gas and electricity shortages, Group Chairman Mostafa Kamal said.
The group produces sugar, edible oil, wheat, flour, semolina, cement, paper, LPG and feed, including through 12 factories dedicated to essential goods. More than 65,000 people work for the group.
“We are not getting even the minimum amount of gas needed to operate the factories,” Kamal said, warning that prolonged disruption could eventually affect the supply of essential goods.
Around 20 of TK Group’s 28 processing factories have also shut due to the gas shortage, while several operational units are unable to maintain normal production.
At around 20 Nabil Group factories, production capacity has fallen to 40-50%. Alternative fuels are being used to keep some operations running, but at significantly higher costs.
In Habiganj’s industrial area, 171 factories have stopped production, leaving around 200,000 workers and employees without work, according to industry representatives.
Gazipur has also been badly affected. Of around 3,500 industrial units in the district and city, production has stopped at around 12-15%, or roughly 525 factories. Production at major factories that remain operational has fallen by about 40%.
In Narayanganj, around 450 dyeing factories have stopped production as gas pressure has fallen close to zero. More than 100 garment factories are also at risk because they cannot source fabric from the dyeing units.
BKMEA Executive President Fazle Shamim Ehsan said the shortage of gas was disrupting fabric supplies and, consequently, garment production.
Gas pressure is also significantly below normal in Savar-Ashulia, affecting boiler, dyeing, washing and finishing operations. Several thousand workers have reportedly been laid off in the area this month.
Around 80% of textile, dyeing and printing factories in Narsingdi and Madhabdi have shut, industry representatives said, estimating daily losses at Tk400-500 crore.
Meanwhile, BSRM, one of the country’s largest steel manufacturers, has shut all 10 of its major factories.
Garment production falls
The gas shortage, compounded by electricity shortages, has sharply reduced production in the garment and textile sectors.
According to BGMEA data, production at many garment factories has fallen to around 50%. A large number of textile mills belonging to BTMA members are also shut, while operational factories are producing at no more than 30% capacity.
Gas-dependent sectors such as denim, dyeing, finishing and spinning are among the worst affected.
Many factories are turning to diesel generators, but the cost is proving difficult to absorb. An official of a major industrial group said its factories require around 65,000 litres of diesel a day, costing about Tk70 lakh.
Apex Footwear Managing Director Syed Nasim Manzur said the company’s diesel consumption had risen 390% because of prolonged load-shedding. SnoTex Group’s fuel costs have increased by around 150%.
Entrepreneurs fear that rising production costs will weaken Bangladesh’s competitiveness in international markets.
Export orders at risk
The biggest concern for industrialists is now export orders.
If factories fail to produce and ship goods on time, foreign buyers could cancel orders or shift them to competing countries.
Mohiuddin Rubel, founder and CEO of Bangladesh Apparel Voice and a former BGMEA director, said the gas crisis was no longer just a garment-sector problem but a major risk to the entire industrial sector and economy.
He said the garment industry depended on an integrated supply chain from spinning, dyeing and finishing to garment production, meaning disruption at any stage could affect the entire system.
“The biggest concern now is not only production disruption but also maintaining the confidence of international buyers,” he said.
Bangladesh competes with countries including India, Vietnam, Cambodia, Indonesia and Pakistan, making reliable energy supplies crucial to maintaining competitiveness, he said.
Rubel called for a predictable schedule for gas supplies to industrial areas so businesses could plan production and keep buyers informed.
He also said the crisis could not be solved simply by switching to alternative fuels because the additional costs were becoming difficult for many factories to bear.
In the longer term, he called for new gas exploration and well drilling, increased LNG supply capacity, diversified energy sources and infrastructure capable of ensuring uninterrupted supplies to industrial areas.
LNG disruption behind crisis
A major factor behind the current shortage is the prolonged shutdown of a floating LNG terminal in Maheshkhali.
The terminal was shut after a fire and technical problems on July 21, reducing gas supplies to the national grid by around 450 million cubic feet a day.
Although it partially resumed operations on August 6, it has yet to return to full capacity. Rough weather at sea has also prevented new LNG-carrying vessels from berthing, further worsening the shortage.
Under normal circumstances, the country receives around 1 bcf of gas from its two floating LNG terminals. The supply has now fallen below 300 million cubic feet.
A wider economic crisis
Chittagong Chamber President Mohammed Amirul Haque said the gas shortage was no longer simply an energy-sector problem but had become a national economic issue.
Production has been disrupted at various industries in Chittagong, including his own soybean crushing factory, he said.
Former BKMEA president Md Fazlul Hoque called for a long-term solution, including gas rationing with advance notice to industrialists and measures to reduce wastage and management weaknesses in the gas supply system.
Economists said factories producing essential goods should receive priority and market monitoring should be strengthened. A prolonged crisis could exhaust warehouse stocks, reduce market supplies and push up prices.
If the disruption continues, industrial production will fall, costs will rise and businesses could face cash-flow problems, difficulties repaying bank loans and further layoffs.
Export-oriented industries could lose orders, reducing export earnings and foreign currency inflows, while lower production of essential goods could cause shortages and fuel inflation.
The gas crisis can therefore no longer be treated as a temporary energy problem. It has become a major risk to production, employment, exports and market stability.
In the short term, limited gas supplies must be distributed efficiently, with priority given to industries and essential goods producers, alongside reliable supply schedules.
In the long term, Bangladesh needs greater investment in gas exploration, LNG infrastructure and alternative energy sources.
When a factory machine stops, it is not only one company’s production that comes to a halt—it also means lost income for workers, reduced market supplies and a slowdown in the economy.