Just as Bangladesh’s flagship Readymade Garment (RMG) sector was navigating volatile global inflation, tightening margin pressures, and geopolitical supply chain realignments, an acute domestic natural gas deficit has thrown the nation’s primary export engine into severe operational distress.
Widespread gas pressure drops across key manufacturing belts have forced garment factories to slash production by 30% to 40%, with some specialized processing units reporting capacity drops of up to 60%.
Industry leaders and trade analysts warn that if the energy bottleneck is not resolved immediately, the damage will extend beyond temporary production losses to permanent market share erosion in favor of regional competitors such as Vietnam, India, Cambodia, Indonesia, and Pakistan.
Gas pressure drops have reduced garment factory output by 30% to 40% overall, with severe cases reaching 60%.
Industrial clusters in Gazipur, Savar, Dhaka, Narayanganj, and Mymensingh are hit hardest, while facilities in Chittagong and Sylhet report relatively manageable impact.
Line pressure in major industrial belts has plummeted from required baselines of 15 PSI down to 1–3 PSI, leaving boilers inoperable and disrupting wet-processing, steaming, and fabric finishing.
Widespread reliance on expensive diesel-powered generators, LPG, and CNG is driving up manufacturing costs at a time when global retail prices remain fixed.
Major global retailers—including H&M, Inditex, M&S, Primark, Gap, Walmart, Nike, Levi's, PVH, Next, Mango, Target, and American Eagle—are closely monitoring factory operations, requesting capacity logs, generator usage data, and on-site compliance audits.
BGMEA consultations reveal that repairs to the disabled floating LNG terminal (FSRU) at Maheshkhali are expected to complete between August 6 and 7, with grid supply gradually recovering from August 8 and normalizing around August 14.
Gas Supply Deficit Cascade in Apparel Manufacturing
Natural Gas Grid Pressure Drops (1–3 PSI vs. 15 PSI Required)
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Wet Processing & Dyeing Paralyzed (Boilers, Steaming & Finishing Stalled)
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Garment Assembly Delays & Production Cuts (30%–40% Capacity Reduction)
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Cost Overruns (Diesel Generators) + Threat of Canceled Orders & Buyer Shift
Dyeing sector paralysis
The energy crisis has struck the primary textile, dyeing, washing, and finishing segments hardest.
Since wet processing relies on uninterrupted high-pressure gas to fire industrial boilers, low line pressure stops fabric treatment long before garments reach the sewing floor.
Unfinished fabric continues to backlog, extending lead times and threatening international shipping deadlines.
Regional Impact Matrix
Manufacturing Region | Severities & Operational Impact | Primary Affected Sectors | Mitigation Measures Employed |
Narayanganj | Severe: Over 1,000 export units impacted; output down 15–20% in general lines, near total shutdown for dyeing units | Knitwear, Fabric Dyeing, Finishing & Processing | Expensive LPG/CNG supplementation; partial shifts |
Gazipur & Savar | High: Operating capacity down 30–40%; severe boiler efficiency loss | Woven & Knit Dyeing, Washing, Garment Assembly | Heavy reliance on diesel generators |
Dhaka & Mymensingh | High: Intermittent pressure drops halting steam production | Spinning, Accessories, Apparel Finishing | Re-scheduling shift timings to off-peak hours |
Chittagong & Sylhet | Moderate: Relatively stable gas line pressure compared to central belts | Integrated Export Garment Units | Standard grid operation with minor backups |
Global fashion brands are monitoring factory floor realities closely.
Rather than accepting verbal assurances, buyers are demanding empirical data on factory energy sources, generator fuel logs, and compliance records.
To address mounting buyer concerns, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) held an emergency meeting with representatives from the Buyers Forum Bangladesh.
BGMEA leaders detailed the ongoing repairs at the Maheshkhali FSRU and formally requested that international buyers grant a one- to two-week grace period for delayed shipments on a case-by-case basis without imposing financial penalties or requiring expensive air freight shipments.
"The single greatest risk facing our apparel sector right now is not merely the surge in production costs, but the potential loss of international buyer confidence," emphasized Mohiuddin Rubel, founder & CEO of Bangladesh Apparel Voice and former BGMEA director.
"Bangladesh's primary competitive strength in the global market has always been our ability to deliver quality merchandise on strict schedules. When energy instability compromises that delivery promise, global brands move quickly to hedge their supply chain risks. Competing nations like Vietnam, India, Indonesia, Cambodia, and Pakistan are ready to absorb shifted purchase orders."
"International buyers do not evaluate suppliers solely on unit price anymore; they prioritize energy reliability, production continuity, and timely shipment," Rubel added.
"Treating this strictly as an isolated utility outage is a mistake. It is an economic challenge tied to our national export competitiveness. While short-term FSRU repairs provide temporary relief, long-term stability requires building land-based LNG storage, establishing redundant gas infrastructure, and establishing uninterrupted energy supply as a national priority. Rebuilding buyer trust after order cancellations takes years."
Strategic roadmap
Industry leaders and energy economists recommend four immediate and structural steps to safeguard the sector:
- Prioritized Industrial Gas Allocation: Ring-fencing key industrial zones (Narayanganj, Gazipur, Savar) to guarantee minimum operational gas pressure for energy-intensive dyeing and processing mills.
- Transparent Buyer Communication: Maintaining open, data-driven updates between factory management, BGMEA, and international brand compliance teams to secure formal lead-time extensions.
- Land-Based LNG Terminal Acceleration: Fast-tracking land-based LNG import and storage infrastructure to bypass the vulnerability of offshore floating terminals during adverse weather or mechanical failures.
- Energy Mix Diversification: Accelerating rooftop solar integration and dual-fuel industrial utility systems to buffer factories against national grid fluctuations.
While the scheduled repair of the Maheshkhali FSRU offers near-term relief, the ongoing gas crisis underscores the vulnerability of Bangladesh's export sector to energy shocks.
Securing continuous industrial gas supply is essential to maintaining buyer confidence, protecting millions of manufacturing jobs, and preserving Bangladesh's position in the global apparel market.
