The gas crisis in the industrial sector has reached its peak, forcing factories to operate at as low as 20 per cent of their total production capacity. Factory owners blame the government inaction. Entrepreneurs warn that if this gas crisis continues to plague the gas-based industries, half of the textile factories may close within next few months.
In industrial hubs such as Narayanganj, Dhamrai, Manikganj, Savar, and Gazipur-home to most export-oriented factories-gas pressure sometimes drops to zero, paralyzing production activities. Around 400 gas-dependent factories, mainly in the textile, ceramic, and steel sectors, are now operating well below full capacity.
Many entrepreneurs report huge financial losses despite paying bills for the permitted gas load of 7 to 15 pounds per square inch (PSI), as the actual gas pressure is drastically lower.
Md. Nasir Uddin, Managing Director of Sadma Group, a garment factory in Gazipur, said, "We are unable to maintain even 40 per cent of production capacity, despite working night shifts and arranging alternative fuel. Where 60 tonnes of yarn were produced daily earlier, now it has dropped to 10 tonnes."
Meanwhile, gas demand in Chattogram is also being reported as low. Karnaphuli Gas Distribution Company Ltd. (KGDCL) previously showed daily demand at 400 million cubic feet, while only 320-340 million cubic feet were allocated. Recently, the company reduced the daily demand to 350 million cubic feet.
Bangladesh Knitwear Manufacturers and Exporters Association President Mohammad Hatem said the gas crisis is disrupting industrial production and warned that the industires could be destroyed if LNG imports are not quickly increased. He appealed to the government to boost gas supply, emphasizing the severe impact on textile and garment factories, many of which are facing closure.
Sources said many factories are using gas to generate electricity via generators, while also relying on oil as fuel. However, most generators run on gas due to lower cost. The ongoing crisis has forced partial or complete shutdowns in numerous export-oriented and domestic-market factories.
The crisis coincides with a surge in purchase orders for Bangladeshi products following the US suspension of tariffs for three months. Entrepreneurs are struggling to meet deadlines due to fuel shortages. Noman Group and other industrial groups have sent letters to the government and Bangladesh Gas Fields Company Limited (BGFCL) expressing concern.
Industry insiders say long-standing corruption and commission trading under the last regime have worsened the energy sector's problems. Power imports and captive power plants have created opportunities for irregularities, contributing to the current crisis.
The recent 15-day reduction in industrial gas supply-aimed at boosting electricity and fertilizer production-has exacerbated the situation. Titas Network alone cut daily industrial supply by 100 million cubic feet, while allocation to power and fertilizer sectors increased by 120 million cubic feet. Petrobangla reports that daily gas supply for electricity and fertilizer has risen from 270-320 million cubic feet (Feb-Apr) to 380-400 million cubic feet.
Entrepreneurs stress the importance of maintaining gas supply to export-oriented industries, proposing that fertilizer production can rely on imports temporarily to meet industrial demand.
Currently, many major factories are running at reduced capacity: Mir Ceramics (15-20%), CRC Textiles (20%), Aman Textiles (40%), Hams Garments (45%), Greatwall Ceramics (30-32%), Somar CNG (50-60%), Mahmud Denims (10-15%), Sadma Fashion (18-20%), Talha Fabrics Limited (25%), Jubair Spinning Mills Limited (35%), Noman Spinning Mills Limited (60%), Noman Composite Textiles Limited (65%), Badsha Textile Mills Limited (65%), Square Textile Mills Limited (60%), Talha Spinning Mills Limited (70%), and Nourish Poultry Feed and Hatchery Limited (10%).
Muhammad Fouzul Kabir Khan, Adviser to the Ministry of Power, Energy and Mineral Resources, said the government is attempting to normalize supply through LNG imports, which should gradually alleviate the industrial gas shortage.
In Chattogram, more than 100 industries have applied for new gas connections, many having paid the demand note amount. Out of 233 million cubic feet allocated, only 97 million cubic feet is being supplied to the city, with even less reaching Sitakunda and Mirsarai industrial areas. Shortages have forced the shutdown of CUFL fertilizer factory and the 150 MW Shikalbahar and 420 MW Raujan power plants, creating crises in both industrial and power sectors.
A Chattogram Chamber of Commerce and Industry director said, "Chattogram is the country's main industrial area, yet gas allocation has been reduced, directly affecting export-oriented sectors such as ready-made garments, steel, paper, and chemicals. Any disruption in exports will reduce foreign exchange earnings."
Energy expert Prof. M. Shamsul Alam called the situation "policy-making discrimination," noting that despite having an LNG terminal in Chattogram, gas is being diverted elsewhere, harming local industries' competitiveness. He warned that prolonged shortages could discourage foreign investment and negatively affect the national economy.
