Gas crisis forces Ctg cos to use costly alternatives to keep plants running

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Jasim Uddin Haroon
CHITTAGONG: Gas-starved factories in the port city of Chittagong have been forced to use expensive alternative fuels in a bid to keep their costly plants operational.
The entrepreneurs said they are now using liquefied petroleum gas (LPG), furnace oil and diesel to prevent their plants from becoming rusty and damaged, despite the fuels cost 5-10 times more than natural gas.
"I am operating my plant by using LPG over the past few weeks," said Mamun-Al-Rashid, managing director of Elsa Consumer Products Limited, a potato-chip producing plant at Sitakunda in Chittagong.
"Otherwise my plant will be damaged. The fuel costs at least eight times more than the natural gas supplied by the government. But since I am not getting any gas supply, LPG is the only alternative to keep my plant running."
Mamun left his comfortable life in France nearly a year ago to set up his "dream factory" in the outskirt of Chittagong. But his Tk 2.00 billion project has largely remained crippled due to severe gas crisis in the Chittagiong region.
Mamun's Elsa is one of around 157 companies now waiting for gas supply despite their plants have been ready for production for months.
Entrepreneurs such as Mamun have invested hundreds of millions of dollars in factories ranging from refineries to steel plants, only to see their projects rusting and counting interest payment since the crisis began late last year.
Nurjahan Group, the country's second largest edible oil importer, last year established a state-of-the-art 1000-tonnes-a-day capacity palm oil refinery in Chittagong, only to be told by the authorities that it would not get gas supply before 2011.
"How many months shall I remain inoperative? They (the government) have pledged to supply gas on several occasions. But I've seen nothing," said Tipu Sultan, director of the Nurjahan Group.
"Every month I am counting losses in interest payment and depreciation. Our equipment are being wasted," he said.
"Sometimes we feel we should file case against the Board of Investment, which has approved our project without knowing the future gas scenario," he added.
Company officials said they would now opt for furnace oil to refine edible oil, but it will raise production cost by at least five times.
Another top sugar refinery --- S Alam Sugar Refinery --- said it is also thinking of alternatives to keep its pricey equipment running. The plant built at a cost of Tk3.5 billion is the largest in Chittagong.
"We have been ready for production since last December. But despite repeated promises, Petrobangla could never supply us gas. Tell me what shall I do now," Abdul Salam Labu, vice chairman of the S Alam Group of Industries, said in a choking voice.
He said his company can use alternative fuel to run the plant, but it would be "suicidal" because every kilogram of sugar produced by firing diesel would be twice the market price.