Urgent action needed to end acute gas crisis hitting hard industries
The textile and knitwear industries in and around the capital Dhaka are facing an unprecedented crisis due to a severe gas supply shortage.
The situation has escalated in the past two months, with gas pressure plummeting to zero in key industrial areas such as Kanchpur, Rupganj, and parts of Gazipur.
This shortage has forced many factory owners to resort to sub-contractors in areas with better gas supply, further straining the already beleaguered sector.
According to the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), the crisis has led to a 50 per cent reduction in production. Numerous factories in Narayanganj district have been forced to shut down operations, exacerbating the economic challenges faced by the industry.
The BKMEA, recognising the gravity of the situation, sent a letter to the state minister for power, energy, and mineral resources, Nasrul Hamid, on December 5, demanding immediate action to ensure gas supply to the affected knit factories.
The letter highlighted that 147 dying factories and 420 small, medium, and large knit factories in the Narayanganj region collectively export goods worth Tk 2,500 crore monthly.
The root causes of this crisis are multifaceted, including a deficit of about 1,200 million standard cubic feet per day against capacity and a failure to import 350mmcf/d of liquefied natural gas (LNG) due to a shortage of dollars.
The gas crisis is not only impacting the textile sector but also has ripple effects on other industries, including the ready-made garment sector.
Energy experts emphasize the need for urgent action, suggesting measures such as increasing domestic gas production and importing more LNG. The blame game between Petrobangla and Titas Gas Transmission and Distribution Company Limited is counterproductive.
The government must intervene promptly to address this crisis, as the livelihoods of thousands of workers and the country’s economic well-being are at stake.
The gas reserves at key locations like Bibiyana have seen a significant decline, and the country’s total gas consumption is dangerously close to the capacity limit.
Immediate steps must be taken to resolve the internal disputes, enhance domestic production, and explore options for LNG importation to alleviate the gas crisis.
The government, industry stakeholders, and citizens must unite to ensure the stability and growth of these crucial export-oriented sectors. An urgent action is needed right now without any further delay.
