Gas Shortage Taking Toll on Our Industrial Sector

As we warned in our recent editorial, “Do Not Let Gas Crisis Cripple Our Garment Industry,” the country’s worsening gas shortage is now taking a heavier toll on industrial production. According to a report published in this newspaper, hundreds of factories in major industrial hubs have been forced to shut down or operate below capacity. What is particularly concerning, however, is that the problem is no longer confined to the garment sector. Textile, food-processing, dyeing, steel, glass and other gas-dependent industries are also facing serious disruptions. 

Despite assurances from the ministers and concerned authorities that the situation would improve after August 10, the continued deterioration raises serious questions about the resilience of our energy system and its ability to support economic activities.

The scale of the shortfall is alarming. Against daily demand of around 3.8-3.85 billion cubic feet, supply reportedly fell to 2.03 billion cubic feet, creating a deficit of 1.77 billion cubic feet. Meanwhile, the partial shutdown of one Maheshkhali LNG terminal further aggravated the situation. Although partially restored on August 6, it was operating at roughly half capacity as of August 12. Due to acute gas crisis 20 of TK Group’s 28 processing factories have reportedly remained closed, while Nabil Group’s factories are operating at only 40 per cent capacity. Also, in Gazipur, around 525 factories have reportedly stopped production.

The consequences are becoming increasingly serious. In Habiganj, gas supplies to 171 factories have reportedly been cut off, leaving around 150,000 workers idle. Concurrently, around 450 dyeing factories in Narayanganj have suspended production, putting more than 100 garment factories at risk. Some factories have faced shipment problems and cancelled foreign orders, while others are relying on costly alternative fuels. More importantly, prolonged disruption could affect domestic supply chains, raise prices and further threaten export earnings and jobs.

The government must therefore act on both immediate and long-term priorities. Essential-goods factories should receive priority in gas allocation to protect domestic markets. The damaged LNG terminal should be restored to full capacity as quickly as possible, while available gas should be distributed through a transparent and credible mechanism. Moreover, market monitoring must be strengthened to prevent profiteering and artificial shortages. The government should also regularly inform industries and the public about the measures being taken and the expected timeline for restoring normal supply. Such transparency would help businesses plan ahead and reduce uncertainty.

What we expect now is decisive action to contain the problem before it causes lasting damage to industrial and agricultural sectors. Bangladesh cannot sustain industrial growth, export expansion or investor confidence without dependable energy. The crisis should serve as a warning that short-term measures alone will not ensure energy security. Accordingly, the government must strengthen LNG infrastructure, accelerate domestic gas exploration and diversify the energy mix. 

Ultimately, our industries need a reliable, predictable and affordable energy supply capable of supporting production even in times of disruption.