Bangladesh’s textile sector—responsible for over 80% of export earnings—faces mounting pressure as rising LNG import costs strain the nation’s energy system. Domestic gas production fell to 747.74 billion cubic feet (BCF) in FY 2023–24, averaging 2,048 MMcfd, while state-owned BAPEX contributed just 5% of total supply. The shortfall is increasingly met through expensive imported LNG.
In the FY 2025–26 budget, Bangladesh plans to spend roughly BDT 550 billion on LNG imports—51 times more than its allocation for domestic exploration and well drilling (BDT 11.29 billion). This imbalance underscores an unsustainable dependency on foreign energy.
Reliance on the spot market compounds the challenge. Of 104 planned LNG cargoes, 33 will be purchased on spot, where prices hover around $14 per MMBtu, compared with $9–$11 under long-term contracts. Spot purchases from suppliers such as MS Aramco Trading Singapore Pte Ltd at $11.88 per MMBtu highlight both volatility and vulnerability. While flexible, spot LNG exposes Bangladesh to cost spikes, budget uncertainty, and potential supply disruptions.
Experts warn that this model threatens industrial stability. Dr. Badrul Imam, honorary professor of geology at the University of Dhaka, notes that the national energy master plan “relies too heavily on LNG imports,” urging renewed investment in domestic exploration.
For the textile industry, energy security is now an existential issue. Strengthening BAPEX, accelerating exploration in deltaic basins like Bhola, and aligning energy policy with industrial strategy could reduce costs, secure supply, and sustain Bangladesh’s global competitiveness in apparel manufacturing.
