A severe natural gas crisis triggered by technical glitches at one of Maheshkhali’s Floating Storage and Regasification Units (FSRU) has pushed Bangladesh’s industrial sector into operational distress.
Over the past week, national gas supply deficits have widened significantly, forcing numerous gas-dependent factories across primary industrial clusters to slash production below half capacity or suspend operations entirely.
Industrial leaders warn that protracted fuel supply disruptions will severely undermine export timelines, working capital solvency, employment stability, and commercial bank debt servicing across the economy.
Against a national demand of nearly 4,000 million cubic feet per day (MMCFD), actual grid supply has fallen to 2,200–2,300 MMCFD following a 450–500 MMCFD drop in regasified LNG output.
Business associations estimate that at least 40% of manufacturing units nationwide are operating under partial capacity cuts or temporary shutdowns.
Gas pressure in Gazipur, Savar, Ashulia, Narayanganj, and Narsingdi has plummeted from standard operational thresholds of 10–15 PSI down to near-zero levels (1–3 PSI).
Shifted reliance on alternative fuels like diesel or LPG has driven up unit production costs, undercutting Bangladesh's price competitiveness in international export markets.
Repair works overseen by international marine engineers are underway, though energy officials indicate normal supply conditions may take another 10 to 15 days to restore.
National Gas Supply & Demand Gap
National Demand ──────────────────────────────────────────▶ 4,000 MMCFD
Current Supply ─────────────────────────▶ 2,200 - 2,300 MMCFD
Daily Deficit ─────────────────────────▶ ~1,800 MMCFD
Industrial Cluster | Affected Sectors | Primary Operational Impact |
|---|---|---|
Gazipur (Kaliakair, Tongi, Sreepur) | Garments, Spinning, Ceramics | Production down 50%–60%; boilers and generators stalled. |
Savar & Ashulia (~1,200 Units) | Apparel, Textiles, Packaging | Capacity halved; risk of shipment delays and buyer penalties. |
Narsingdi & Narayanganj | Dyeing, Knitting, Finishing | Complete plant halts in dyeing and finishing raw-material hubs. |
"The textile and apparel sectors are currently navigating three simultaneous crises: gas shortages, finance, and operational security," noted Shawkkat Aziz Russell, president of Bangladesh Textile Mills Association (BTMA).
"Factories continue paying wages despite halted production lines, eroding working capital. Ensuring uninterrupted gas supply to industry must be treated as the state's highest economic priority."
"The current gas crisis reflects long-standing structural vulnerabilities in our energy architecture," stated Mohiuddin Rubel, founder and CEO of Bangladesh Apparel Voice and former BGMEA director.
"Over-reliance on imported LNG without timely domestic reforms has left industry exposed. In the short term, if full gas restoration takes time, the government must extend policy support—such as tax relief or financial incentives—to offset factory losses. Long term, building a resilient domestic energy infrastructure is essential for sustainable growth."
"Producers are paying elevated energy tariffs without receiving uninterrupted gas," emphasized Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD).
"This uncertainty discourages fresh investment and inflates per-unit costs. Relying solely on imported LNG strains foreign exchange reserves. The government must urgently establish a transparent gas allocation framework that prioritizes export industries, while accelerating domestic exploration and curbing distribution losses."
Long-term outlook
Energy experts emphasize that the crisis stems from structural supply imbalances rather than an isolated technical failure.
The Energy Division has announced plans to drill 100 new exploration wells long-term, alongside progressing a land-based LNG terminal at Matarbari and adding FSRU capacity.
Industrial manufacturing remains the central driver of Bangladesh's GDP, employment, and foreign exchange earnings.
Resolving immediate supply bottlenecks while accelerating domestic gas exploration is vital to preserving industrial output, retaining foreign buyer trust, and maintaining macroeconomic stability.
