The Bangladesh Textile Association (BTMA) stated that since March 2022, the shortage of natural gas has left only 30-40% of the production capacity of Bangladeshi textile mills. Among the 1,700 member manufacturers, at least Three out of five manufacturers are at risk as a result.
Factories located in Narayanganj, Araihazar, Madhabdi, Ashulia, Savar, Gazipur, Sreepur, Bhaluka areas around Dhaka, as well as Chittagong and Comilla areas, have been shut down for an average of 12 hours .
BTMA Secretary-General Mohammad Ali Khokon said that textile mills require uninterrupted supply of natural gas to maintain production.
He pointed out that if the Bangladesh government can provide uninterrupted electricity of at least 3,000 million cubic feet (MMCF) per day, manufacturers are willing to pay part of the higher electricity bills .
Bangladesh media quoted Mohammad AliKhokon as saying: Even if the Bangladesh government imports LNG (liquefied natural gas) from the spot market at a price of US$30 per million British thermal units (MMBTU) ), the average price will still reach 28 Bangladeshi Taka (Tk), but this will help the textile industry survive; due to the natural gas crisis, factories must now stop production for up to 12 hours.
Due to the Russia-Ukraine war, the spot market natural gas price rose from US$6-7 per cubic meter to US$35. In addition, Bangladesh is facing a foreign exchange reserve crisis.
Khokon added that although most of the textile factories are located in remote areas, these areas are now densely populated, and the electricity sources provided by the authorities are mainly natural gas, further leading to the Supply is in short supply.
