Poor gas connections put industry at risk
Staff Reporter
Business leaders have warned that delays in providing industrial gas connections are preventing factories worth hundreds of crores of taka from starting production, putting investments, jobs and loan repayments at risk.
Entrepreneurs raised the concerns at a discussion on energy security attended by the energy minister, business leaders, exporters, trade representatives, energy experts and academics in Dhaka.
They said at a discussion on energy security that brought together the energy minister, business leaders, exporters, trade body representatives, energy experts and academicians at a city hotel organised by the Daily Bonik Barta, with Editor Dewan Hanif Mahmud moderating the discussion.
They said many industries have already paid demand notes to state-owned Titas Gas Transmission and Distribution Company, but have yet to receive gas connections, leaving newly built factories idle despite major investments.
Mostafa Kamal, chairman and managing director of Meghna Group of Industries, said he deposited Tk 140 crore with Titas for gas connections to a steel mill and a glass factory at the Cumilla Economic Zone, but the facilities remain without gas supply despite being ready for operation.
He also said his group spent around Tk 700 crore in fees to secure gas connections for factories at the Meghna Economic Zone. With loans from foreign sources due for repayment, he expressed concern over possible financial losses and default risks.
Business leaders warned that stalled production would affect not only investors but also the broader economy by weakening exports, employment and industrial growth.
Simeen Rahman, vice-president of the Metropolitan Chamber of Commerce and Industry (MCCI) and chief executive officer of Transcom Group, said reliable energy supply is essential for industrialisation, investment and productivity.
She said gas shortages, voltage fluctuations and unplanned power disruptions were increasing production costs and creating uncertainty across supply chains.
Titas Gas Managing Director Shahnewaz Parvez said nearly 1,300 applications for industrial gas connections are pending, including around 500 customers who have already received demand notes but are still waiting for connections.
Titas currently supplies gas to around 4,500 industrial units across 13 districts, accounting for about 60 percent of the country’s industrial gas supply.
Parvez said industries in Gazipur are among the worst affected, with daily demand at around 2,200 million cubic feet (MMcf) against available supply of only 1,500 MMcf.
BAPEX Managing Director Fazlul Haque said gas exploration activities are underway at 29 wells, while the company is procuring five rigs to expand exploration efforts.
Meanwhile, Energy Minister Iqbal Hasan Mahmud said the government plans to allow private companies to import petroleum products to reduce pressure on state subsidies.
He also said plans are being considered to privatise power distribution as part of efforts to reduce subsidy costs.
The government currently imports and produces energy at high costs but sells it at lower prices, resulting in increased subsidies in the energy sector, the minister said.
