🛑 Bangladesh Textile Industry Faces Gas Crisis: Over 500 Mills at Risk in 2025

Bangladesh’s textile and apparel industry — the second-largest in the world — is currently facing a severe energy crisis, threatening the operations of over 500 spinning mills across the country. As of mid-2025, major manufacturing zones like Narayanganj, Gazipur, and Tongi are reporting that production has fallen to just 30–40% of total capacity.

This ongoing gas shortage is more than just a temporary setback — it’s a serious threat to the country’s $70 billion textile sector, jeopardizing jobs, global trade relationships, and Bangladesh’s reputation as a dependable sourcing hub.

 

⚠️ What’s Happening?

The crisis began when the supply of natural gas — the main energy source for most textile mills — dropped dramatically. According to reports, the gas supply currently stands at only 1,000 mmcfd (million cubic feet per day), while the industry needs over 2,000 mmcfd to function at full capacity.

This shortage is forcing factories to:

• Operate only 2–3 shifts per week instead of daily
• Lay off hundreds of temporary workers
• Delay export orders
• Lose millions of taka in daily revenue

 

🧵 Impact on the Textile & Spinning Sector

The spinning mills, which convert cotton into yarn, are among the hardest hit. Without gas, their machines cannot operate efficiently. Yarn production in Narayanganj, a key industrial hub, has already fallen by 60–70%. Many mills are now running only one shift a day, some have shut down entirely, and others are close to permanent closure if the situation does not improve soon.

📉 Financial Losses at a Glance:

• Each mill is losing approximately Tk 2.5 million per day
• Export commitments are delayed, risking contract cancellations
• Machinery remains idle while labor costs still accumulate

 

🇧🇩 Why This Matters for Bangladesh

Textiles and garments contribute to over 84% of Bangladesh’s total exports. The country’s economic stability heavily depends on uninterrupted production, especially in the Ready-Made Garments (RMG) and textile sectors. If gas supply remains unstable, Bangladesh risks:

• Losing trust from international buyers (like H&M, Zara, Target, and Kmart)
• Falling behind competitors like Vietnam, India, and Indonesia
• Mass unemployment for workers, especially women in rural areas
• Reduced foreign exchange earnings

 

🗣️ What Industry Leaders Are Saying

Industry associations like BTMA (Bangladesh Textile Mills Association) and BKMEA (Bangladesh Knitwear Manufacturers and Exporters Association) have expressed deep concern. They are calling on the government to:

• Immediately import Liquefied Natural Gas (LNG) to fill the supply gap
• Prioritize gas allocation for export-oriented industries
• Develop long-term energy strategies to avoid repeated crises

"If gas supply is not ensured immediately, hundreds of factories will be forced to shut down permanently,” warned one senior BTMA official.

 

🔍 What’s Causing the Gas Shortage?

Several factors are contributing to the crisis:

• Depletion of domestic gas reserves
• Delayed LNG import contracts
• High international LNG prices
• Lack of proper infrastructure and pipeline expansion

The global energy market has also become unstable due to rising oil and gas prices following geopolitical tensions and supply chain disruptions post-COVID and the Russia-Ukraine conflict.

 

🔋 The Urgent Need for Energy Diversification

To secure the future of its textile industry, Bangladesh must:

1. Diversify Energy Sources – Introduce solar, wind, and biogas for industrial use.
2. Invest in LNG Infrastructure – Create more terminals and pipelines to deliver gas reliably.
3. Incentivize Energy Efficiency – Encourage factories to adopt energy-saving technologies.
4. Strengthen Government & Private Collaboration – Form joint strategies to prevent future supply shocks.

 

🏭 Voices from the Ground: Narayanganj Under Pressure

Factories in Narayanganj are particularly vulnerable. Home to dozens of spinning, knitting, and dyeing units, this area is now operating at less than 40% production capacity. Many small and medium mills don’t have alternative power sources like diesel generators, making them totally dependent on the gas grid.

Workers are being sent home early. Some fear permanent job loss.

“We can’t keep the machines running without gas. Orders are pending, buyers are pressuring, and still, we have no solution,” said one factory manager in the area.

 

🧑‍💼 What Buyers and Brands Need to Know

Global buyers sourcing from Bangladesh should be aware of this crisis and take proactive steps:

• Stay in close communication with suppliers for realistic lead time adjustments.
• Support suppliers with advance payments or shared energy solutions.
• Promote sustainable energy use in your sourcing strategy.
• Advocate for energy investments in your key supply regions.

✅ Final Thoughts

The gas crisis is a wake-up call. Bangladesh’s textile industry — proud of its resilience, affordability, and global standing — is now at a crossroads. Without immediate action, the country could face a long-term slowdown in one of its most vital economic sectors.

This is the time for bold decisions by both the government and private sector. Long-term energy security and sustainability must now become a top priority to protect Bangladesh’s position as a global textile leader.