A severe natural gas shortage in Bangladesh has forced widespread industrial shutdowns, threatening the world’s second-largest garment exporting nation where apparel accounts for roughly 80 percent of export revenue. The crisis, which began on July 21, escalated after Excelerate Energy’s LNG terminal shut down on Wednesday having exhausted its inventory.
In Narsingdi, which supplies nearly 70 percent of the country’s clothing, more than 100 textile factories halted production in the past two days as gas pressure dropped to near zero. Workers at 20 factories in Mymensingh’s Bhaluka industrial area were partially sent on leave. The Ashuganj fertilizer plant, which employed over 1,200 people and produced more than 1,000 tonnes daily, ceased operations in March 2025.
The government this month introduced power-saving measures including ordering shopping malls to close an hour early. Manufacturers running backup generators on fuel oil instead of gas face costs nearly five times higher, compounding pressure on an industry central to the economy.