Author: Nafees M Khan, Managing Director, Gears Group
An uninterrupted energy supply is essential for Bangladesh’s industrial sector, particularly for export-oriented industries such as textiles and garments. However, the country remains heavily dependent on imported energy, making its economy vulnerable to disruptions in global energy markets.
Bangladesh relies heavily on imported liquefied natural gas (LNG), with Qatar among its key suppliers. Any disruption in LNG production or supply quickly drives up global prices and threatens the stability of gas supply to the national grid. In such situations, the government is often forced to procure LNG at significantly higher prices to maintain supply.
At the same time, Bangladesh’s power generation system still depends heavily on liquid fuels such as heavy fuel oil (HFO) and diesel. Although refined petroleum products are primarily imported from Southeast Asian markets like Singapore and Indonesia, global supply disruptions can sharply increase costs. If adequate fuel supplies cannot be secured, the country may face shortages not only in electricity generation but also in captive power systems that many factories rely on for uninterrupted operations.
Such disruptions could severely affect industrial production. Gas shortages would slow down textile manufacturing, while fuel shortages could increase non-productive time in factories, delaying production and extending lead times. These delays often force exporters to rely on expensive air shipments to meet delivery deadlines.
If global instability persists, Bangladesh may eventually need to adjust domestic energy prices to reflect rising import costs. This would increase production expenses, strain foreign currency reserves, and add further pressure to inflation.
Strengthening energy security and diversifying energy sources has therefore become crucial for protecting Bangladesh’s industrial growth and economic stability.
