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Gas use flexibility expanded for factories

Business leaders have welcomed the move, noting that it will streamline production processes, particularly in energy-intensive sectors such as textiles

The government has relaxed regulations governing the distribution and use of industrial gas, allowing factories greater flexibility to reorganise equipment and reallocate unused gas loads with fewer layers of approval — an initiative aimed at improving efficiency and reducing operational costs.

The Power, Energy and Mineral Resources Division issued a circular on Monday detailing the revised guidelines, which are intended to ease long-standing operational constraints faced by industrial users.

Business leaders have welcomed the move, noting that it will streamline production processes, particularly in energy-intensive sectors such as textiles.

Under the updated rules, industrial units will be permitted to rearrange or replace gas-fired equipment without prior approval, provided their authorised hourly gas load remains unchanged.

However, installation work must continue to be carried out by contractors enlisted with the relevant gas distribution company.

The circular also introduces greater flexibility in gas utilisation within factory premises.

Companies may now transfer unused gas loads between units operating under the same ownership and within the same location, subject to approval from the managing director or regional head of the respective gas distribution company.

Previously, such approvals required clearance from the head office board, often leading to delays.

In addition, gas allocated for captive power generation can now be redirected to industrial use within the same premises, depending on operational requirements.

To ensure compliance and service quality, the directive requires gas distribution and marketing companies to install meters within seven days, followed by verification of installation standards.

As one of the largest consumers of industrial gas, the textile sector is expected to benefit significantly from the revised framework.

The Bangladesh Textile Mills Association has welcomed the initiative, stating that it will enhance operational efficiency.

In a statement issued on 20 April, the association said the reforms would help boost productivity, reduce costs and improve energy management across the textile and apparel industries.