back from Chittagong
New industries having invested nearly Tk 35 billion in capital machinery and infrastructures have remained idle since November last due to unavailability of gas.
Once pressed into operation these industrial units would have the potential to employ around 45000 workers and employees, according to data separately compiled by the Chittagong Chamber of Commerce and Industry, the Chittagong regional office of the Bangladesh (CCCI) Garments Manufacturers and Exporters Association (BGMEA) and the Chittagong Export Processing Zone (CEPZ).
An official committee on Chittagong gas crisis headed by Commerce Adviser Hossain Zillur Rahman will sit with industrialists, businesses, chamber leaders and concerned government departments today (Monday) at the circuit house in Chittagong to discuss the gas supply issue.
Experts, who are convinced that there is no immediate local solution to the gas crisis, told the FE that the import of liquefied natural gas (LNG) from middle-east countries remained to be only solution.
Sources at the Bakhrabad Gas System Limited (BGSL) said they could not provide gas connection even to one out of 157 applications received since November last for fresh industrial gas connection.
The general manager of the BGSL said it needs at least 145 million cubic feet (mmcf) of additional gas supply each day to provide gas connection to the factories applied for gas connection.
Currently, the BGSL is providing 270 mmcf each day against the demand for 360 mmcf gas.
The CCCI told the FE that operation of a total of 220 industrial units had remained stalled for lack of gas connection. These units belong to various sub-sectors, including textiles, paper and steel.
Apart from this, more than 1200 mills and factories located at the port city are also facing the problem of low pressure of gas, industry sources said.
They also said implementation of a good number of investment proposals, including the Youngone Shoe Factory at Korean Export Processing Zone and the Essar's steel plant at Karnaphuli Export Processing Zone (KEPZ) also has become uncertain following the gas supply problem.
Muhammed Amirul Haque, a CCCI director, told the FE that they would advise the government at the today's meeting to import gas either in LNG form or through pipeline from Myanmanr for an immediate solution to the problem.
"We will seek short, mid and long term solutions to the gas crisis from the government," Mr Amirul added.
He also said: "The government should take steps for diverting gas supply to the new industrial units from fertiliser and power plants.
"We have the option to import urea. So for the time being, we can stop supply of gas to the fertiliser factories and divert it to the new industries as the entrepreneurs have been incurring huge financial losses in terms of bank interest," Mr Amirul said.
One potato chip factory has remained idle for last nine months far lack of gas connection.
"We need only 85 cubic metre gas-load per hour for running three gas burners for my plant. But surprisingly I am yet to get it," said Mamun Al Rashid, managing director of Alza Consumer Products (BD) Limited.
He said: "I earned money working in France for a period of last 15 years, I came to my home town for materialising my dream for setting up of an international standard chips factory. But my dream has now been shattered," Mr. Rashid said in an emotion-chocked voice.
He said he has invested a total of Tk 100 million for his plant at Sitakunda in Chittagong with a production capacity of 2000 tonnes chips annually.
He said, "Each month I am giving Tk 600,000 as bank interest, my machines might become inoperative and my loan turn classified in such an uncertain situation."
Ataul Hoque, general manger of CEPZ told the FE that implementation of projects worth around $100 million had remained stalled at the CPEZ for lack of gas.
"The new projects include a shoe factory, garment and textile units," Mr. Ataul Added.
Project director of newly constructed Karanaphuly Export Processing Zone Nurul Islam told the FE that the new investment proposals for the EPZ would suffer as the BGSL were not giving new gas connections.
"We are in touch with our head office for resolving the crisis as early as possible for the interest of the industrialisation," Mr. Islam added.
Regional office of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told the FE that around 80 units, including 60 new ones, had remained idle for lack of gas connection.
Garment units uses gas for captive power generation as the port city has been going through a severe power crisis for long.
However, Muinul Ahsan, a former director of Petrobangla (mines and mineral) informed the FE that he was not foreseeing any solution to the gas supply problem barring the import of LNG.
"We cannot import from Myanmar as it is already committed to the China for supply gas through pipe lines," Mr. Muinul added.
"We might import LNG from the Middle Eastern countries as the port city has infrastructure for converting those LNG. The city has also good network as well for supply to the mills and factories," he added.
He said: "The possibility of getting gas from country's North-South zone is thin due to pipeline constraint. The pipeline has a dia of 24 inches only," Mr. Muinul added.
But, the BGSL sources said Chittagong might get 20 mmcf gas per day once the Bangura Gas Field of Chittagong and Bakhrabad wells nos. 2 and 3 start gas production.
