Staff Correspondnet

Industrial sectors in Bangladesh are facing a severe gas shortage, disrupting production across factories. For several weeks, inadequate gas supply has caused output in key sectors like ceramics, steel, and textiles to drop by nearly half.

Industrial entrepreneurs warn that the gas crisis has pushed the sector into turmoil, leading to the shutdown of hundreds of factories over the past few months. This has resulted in declining export earnings, stalled investments, and stagnated employment growth. Entrepreneurs emphasize that without resolving the gas and power supply issues, economic growth will stall.

They also fear that if the problem is not addressed swiftly, domestic production will further decline, negatively impacting export earnings and exacerbating the dollar shortage. The drop in production has already reduced imports of industrial raw materials by 9.81% and letters of credit (LC) for machinery imports by 41%.

According to industry insiders, declining local gas production has created shortages across sectors, including industrial factories, CNG stations, power plants, and residential areas. Factories in Gazipur, Narayanganj, Narsingdi, and Savar report that inadequate gas supply has halved their production. Low gas pressure often forces factories in these areas to shut down intermittently.

Even those with captive power generation capabilities face challenges as the gas shortage prevents them from operating. Entrepreneurs in the ceramics sector say the crisis has significantly impacted their industry.

Moinul Islam, president of the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) and vice chairman of Monno Ceramic Industries, said, "Ceramic production in Gazipur and Narsingdi has dropped by 50% due to low gas pressure, while factories in Savar and Dhamrai are operating at just 25% capacity."

Engineer Kazi Mohammad Saidul Islam, general manager of Titas Gas Transmission and Distribution Company, said, "The daily gas demand in our distribution area is 2,400 million cubic feet, but we can only supply 1,550-1,600 million cubic feet, leading to a significant shortfall."

Pallab Group’s admin manager Md. Mostakim shared, "Gas shortages have disrupted production in our factory and increased costs. Diesel is being used as an alternative, which is expensive but keeps production running."

According to PetroBangla, current daily gas demand nationwide is 4,200 million cubic feet, but supply is limited to 2,741 million cubic feet, creating a shortfall of 1,459 million cubic feet. Of the supplied gas, 1,889 million cubic feet come from domestic fields, and 851 million cubic feet are imported LNG.

Anwar-ul-Alam Chowdhury, president of the BCI, highlighted that growth in the industrial sector has been declining. From a growth rate of 10.29% in FY 2020-21, it fell to 6.66% last fiscal year and only 3.98% from April to June 2024. Between March and September, 200 factories were shut down, and another 300 are at risk.

Faujul Kabir Khan, adviser to the Ministry of Power, Energy, and Mineral Resources, stated, "Bhola has sufficient gas, but the lack of pipelines prevents it from reaching Dhaka or industrial zones. Converting it to LNG and transporting it could alleviate the crisis somewhat."

This prolonged energy crisis poses a severe threat to Bangladesh’s industrial growth and economic stability, underscoring the urgent need for comprehensive solutions.