Hundreds of factories are unable to start production due to the lack of new gas connections in industries. Even after building factories with bank loans, investors are facing multiple problems because they cannot begin production. As a result, many are becoming destitute.
It has been learned that a large number of applications for new industrial gas connections have piled up with gas distribution companies. Industrial owners have even deposited the required fees, but connections have not been provided. Many factories are being forced to run on electricity instead of gas, which increases production costs by 8–10 percent.
To cut costs, many factories are hiring fewer workers than needed, resulting in reduced employment opportunities.
Many factory owners have deposited money for new gas connections and have even received demand notes. However, even after several years, they have yet to get their connections. Running factories on electricity is pushing some owners into debt due to high expenses, while others are suffering production losses because of load-shedding, which damages products. Overall, the lack of new gas connections has left business owners in great distress.
Industry owners told Bangladesh Pratidin, many have received demand notes years ago but still have not been connected. Heavy industries require an uninterrupted energy supply, which is impossible without gas. Without connections, new heavy industries are not being established, and investors who have built infrastructure but cannot get gas connections are becoming financially weak. As a result, no new employment is being created, and some goods now have to be imported, causing money to flow out of the country.
Among the country’s gas distribution companies, Titas alone has received 1,100 applications for new connections and load increases combined. More than 400 of these applicants have completed all formalities and are simply waiting for the promised connections. These customers have already deposited their payments, including applications for new factories, factory expansions, or increased gas loads.
On 13 April, the Bangladesh Energy Regulatory Commission increased the price of gas for new connections and load increases by 33 percent. Despite objections from industrial owners, the government promised that gas supply to industries would increase in exchange for this price hike. But no new connections have been given during this period, and since January, the process for providing new gas connections has been completely halted.
Government officials say that providing the promised connections is now a priority. Those who received demand notes by 13 April have been placed on the priority customer list. At present, the country’s gas demand is about 3,800 million cubic feet per day, while supply is only 2,800–2,900 million cubic feet. Of this, industries receive about 1,200 million cubic feet.
Officials from Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) stated that new gas connections for industries will be provided in three categories: industries that can receive gas connections within three days, industries that can be connected within three months, and industries that can be connected within six months.
Petrobangla Chairman Md. Rezanur Rahman said, “A new provision has been introduced for industrial gas connections. In cases of new connections or load increases, distribution companies must ensure gas supply because industrial gas is priced higher. We also have to work carefully to meet industrial gas demand.”
He further said, “We have already identified factories that can be connected immediately-within three days. A joint committee of the relevant ministry and Petrobangla is physically inspecting these factories. Inspections have already been completed for customers of Jalalabad, Karnaphuli, and Bakhrabad gas distribution companies. Inspections for Titas will also be completed soon, after which connections will be provided at this stage. Since we are visiting factories in person, there is no question of giving anyone special treatment.”
Bd-pratidin English/ ANI
