Asia’s industrial sectors in Pakistan and India are rapidly shifting from gas and grid power to solar energy, driven by cost savings and energy security, thereby reducing dependence on imported LNG.

Although major LNG players once framed LNG as a stabilizing energy force, Asia is moving toward solar and renewables as a more reliable, cost-effective option for industrial power needs.

This South Asia shift to solar is reshaping energy economics for industry, lowering LNG dependence and altering competitive dynamics in textiles and manufacturing across Pakistan, India, and Bangladesh.

Fauji Cement in Pakistan installed 69 MW of solar across five sites, providing about 23% of electricity, with an additional 35% from waste-heat recovery, at an on-site cost of 5–6 rupees per kWh (about two cents), far cheaper than grid prices.

Rising energy costs and supply disruptions are pushing fashion and textile exporters to clean up supply chains to avoid carbon-related tariffs, boosting incentives to switch to renewables.

Bangladesh is slower to adopt renewables, with only 1.6 GW of solar connected nationwide versus Pakistan’s much larger potential, leaving Bangladesh more exposed to supply shortages and higher energy costs as LNG supplies waver.

In India and Pakistan, textiles and apparel manufacturing show notable impact, with Moody’s-ICRA ESG data indicating Indian apparel plants derive about 28% of electricity from renewables and several textile exporters expanding solar and other clean energy sources.

The solar shift helps Pakistan avoid roughly 35 LNG shipments annually, saving about $12 billion on LNG and oil so far and potentially at least $7 billion more this year, reducing exposure to geopolitical disruptions.

The Iran conflict and damage to LNG infrastructure in the Hormuz region have intensified concerns about LNG reliability, reinforcing solar’s appeal as a stable power source for energy-intensive industries.