Production in CUFL resumes after getting gas

It now operational during winter only

NAZIMUDDIN SHYAMOL | Published: November 05, 2023 22:58:19

Chattogram, November 5: The Chattogram Urea Fertilizer Company Limited (CUFL) has resumed production after a six-month closure, following machinery renovations and the resumption of a limited gas supply. On May 5, the Karnaphuli Gas Distribution Company Limited (KDGCL) had suspended gas supply to CUFL, causing a halt in production.
The CUFL, when operational, is expected to produce 1,200 tonness of fertilizer per day. Managing Director (MD) Mizanur Rahman stated, "Due to gas shortages and mechanical failures, urea production at the factory came to a halt. We recommenced urea production at 4 pm on Sunday."
CUFL typically suspends production during the summer months, in line with other state-owned fertilizer factories.
This temporary halt is necessary as authorities prioritize natural gas supply for electricity generation during this period to maintain a steady power supply across the country.
Sources within CUFL reported that the plant has struggled to operate for more than three months in a year due to gas shortages.
The frequent shutdowns have resulted in CUFL incurring losses of Tk 500 million on average every
month, as the organization continues to pay nearly Tk 100 million monthly for salaries and other expenses.
According to CUFL sources, the organization could realize a daily profit of Tk 10 million if production were to continue regularly.
Established in 1987 at a cost of Tk 17 billion, CUFL's guaranteed 20-year life ended in 2007. Furthermore, the company has faced annual losses due to the irregular supply of natural gas.
CUFL's total gas demand is 51 million cubic feet (CFT) daily, but the authorities have struggled to supply the required quantity consistently. These gas supply interruptions have hindered CUFL from achieving its production targets over the past few years.
The design capacity of CUFL's production stands at 561,000 metric tons, a mark that has never been attained since the company's inception in 1987.
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