Factories Struggle, Investments Halt Amid Bangladesh Gas Shortage
Nearly 1,900 industrial factories in Bangladesh await gas connections. This severe gas shortage causes big problems for businesses. Many companies cannot start or expand operations.
The government stopped new gas connections for industries. It also halted increased gas supply for existing factories. This decision will stand until the energy shortage eases. The ministry informed Petrobangla in July.
Factories without gas use expensive LPG or LNG. This makes production costs three times higher. Many companies now struggle to pay back bank loans.
TK Group invested in Karnaphuli Steel Mills in Chattogram. It has a power plant but needs a gas connection. Without gas, it relies on national grid electricity. Frequent power cuts disrupt production and damage goods.
Other big companies face similar issues. Meghna Group of Industries built two factories in Cumilla. They cost Tk 73.2 billion. These factories are ready but idle without gas. Meghna Group pays nearly Tk 450 million monthly interest on loans.
Five City Group factories in Munshiganj cost Tk 140 billion. They cannot start work due to no gas. Square Group wants to expand its textile mills. It plans to create 20,000 jobs. But it needs more gas.
Industrialists are deeply worried about the future. They say new investments will not come without gas. This means fewer new jobs will be created. The current situation sends a confusing message to investors.
Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood commented on the issue. He said the previous government approved projects but did not arrange gas supply. The minister added that the government is working to get more gas. This means increasing local production and imports. New gas connections will start again when supply improves.
Khondaker Golam Moazzem is a research director at the Centre for Policy Dialogue. He believes past policies made Bangladesh too dependent on imported gas. He suggests using gas from Bhola and Barishal. He also urged BAPEX to drill more wells quickly. These steps are needed for a stable energy supply.
