Japan International Corporation Agency (JICA) expressed concern over the shutdown of operation of the multinational Karnaphuli fertiliser factory following gas-supply suspension, officials said.
The Japanese agency has requested immediate resumption of production at the factory of Karnaphuli Fertiliser Company Ltd (KAFCO), a joint venture of governments and private sectors of Bangladesh, Japan, Denmark and the Netherlands.
Production at KAFCO factory remained suspended since June this year "due to the stoppage of gas supply following the instruction from the government of Bangladesh".
JICA vice-president Kenichi Tomiyoshi in a recent letter to State Minister for Power, Energy and Mineral Resources Nasrul Hamid sought the cooperation and copied it to Finance Minister AMA Muhith and Prime Minister's energy adviser Dr. Tawfiq-e-Elahi Chowdhury and some other important ministers and secretaries of the government.
Every year, the government keeps gas supply to most of the fertiliser factories suspended for a certain period, leading to their production halt, to ensure adequate gas supply for electricity production.
Bangladesh Chemical Industries Corporation (BCIC) in a recent memo to the government said its fertiliser factories, save the factory of Jamuna Fertiliser Company, remained closed, on average, six to seven months a year owing to the shortage of gas supply.
The JICA vice-president in the letter reminded that KAFCO is a Bangladesh-Japan cooperation project under Japan's ODA (official development assistance) programme and it is considered one of the most productive fertiliser plants in the country.
Mr Tomiyoshi also wrote that the government assured shareholders of the supply of necessary volume of gas in the KAFCO-shareholder agreement.
"I also believe that efficient use of energy is necessary to realise stable energy supply and development of your country. From this point of view, KAFCO's plant in Chittagong should be utilised as much as possible by allocating natural gas as stipulated in the agreement, which would lead to the development of agriculture sector in your country," he noted.
Mentioning the importance of KAFCO's plant in terms of country's economy, Mr Tomiyoshi requested necessary actions for the resumption of gas supply to the fertiliser plant.
He said the step "will not only manifest your government's commitment to further promote 'Japan-Bangladesh Comprehensive Partnership' but also help in engendering stronger confidence among Japanese investors".
KAFCO is a hundred-percent export-oriented international joint-venture company. It produces high-grade granular urea and anhydrous ammonia fertilisers. The facility consists of an ammonia plant, urea plant, and a urea granulation unit.
When contacted, state minister Mr Hamid told the FE adequate gas will be supplied to the plant once gas is available.
He said till now power plants with 2000 megawatts of electricity-generation capacity remained shut due to gas crunch.
"The government is committed to supplying gas to the fertiliser factory only if gas is available. Providing adequate gas to the plant will be possible after two more years when liquefied natural gas (LNG) supply will be started," the minister said.
Mr Hamid, however, reminded that gas price for the plant would be costlier then.
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