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Owners caution that gas shortage is pushing factories close to closure

BTJ Desk Report
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Owners caution that gas shortage is pushing factories close to closure

A severe gas shortage in Gazipur’s industrial zones, including Konabari, Kashimpur, Basan, and Tongi, has left over 800 garment factories struggling to operate. This crisis, caused by maintenance of floating LNG terminals and reduced domestic gas extraction, has led to disruptions in production processes.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) expressed concerns over potential factory closures, unemployment spikes, and disruptions in the knitwear sector, which contributes 52% to Bangladesh’s total exports. The crisis has also impacted the textile sector, with production significantly hampered. Officials attribute the gas shortage to ongoing maintenance and decreased daily gas supply, with the situation expected to persist despite reassurances from the State Minister for Power, Energy, and Mineral Resources.

The consequences are dire, potentially threatening the survival of the garment industry and causing economic losses in the hundreds of thousands of taka on a daily basis.

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