Gas crisis deepens: Industries wait indefinitely for connections

Lantabur Group has invested Tk 7 billion (Tk 700 crore) to establish a yarn factory in Trishal, Mymensingh. The construction was completed six months ago, but the factory remains non-operational due to no gas connection, despite receiving a demand note from the authorities back in November 2022.

Mohammad Salman, managing director of Lantabur Apparels, told Prothom Alo that the factory could employ 1,500 people once operational. “But without gas, we cannot begin production,” he said. Meanwhile, loan repayments have already started.

Lantabur is not just one case. According to Petrobangla and related sources, more than 1,000 industrial gas connection applications are pending with six gas distribution companies, including Titas. Of these, over 400 applicants have completed all procedures and are awaiting “promised connections,” meaning they have already deposited the required funds. Around 600 other factories have submitted applications but have yet to receive any assurance.

These 400-plus applicants include new factories (with promised connections ), expanded ones, and those requesting increased gas load (supply) for production.

The roots of this crisis lie in the 15 and half years of Awami League rule, which ended with the July mass uprising. The previous government prioritised gas imports over domestic exploration. By 2022, dwindling foreign reserves made gas imports difficult, and global prices surged. The Awami League government also left the energy sector steeped in massive debts, which the current interim government is now repaying. Although the new administration is emphasising domestic gas exploration, the crisis remains unresolved. As a result, existing factories are struggling, and new connections are practically frozen, thus crippling industrial operations.

For example, PRAN-RFL Group, one of the country’s largest industrial conglomerates, has established an export-oriented plastic factory in Matiyara, Cumilla. While partially operational, the plant is running well below capacity due to the lack of a captive gas connection.

Pipelines and two generators are ready, but the connection has yet to be provided. PRAN officials say the factory could create at least 5,000 new jobs. They received a demand note from Bakhrabad Gas Company on 23 June 2021, and another from Titas in January 2025 for a packaging factory—yet both remain unconnected.

Ahsan Khan Chowdhury, PRAN-RFL’s Chairman and CEO, said, “We’ve invested billions in these two factories. Now, in the final stage, the connection is being held up.”

Gas prices rose multiple times under the Awami League government, but the crisis never eased. In January 2023, prices for industrial gas rose by 150–178 per cent, with the promise of uninterrupted supply. On 13 April this year, under the interim government, the Bangladesh Energy Regulatory Commission (BERC) raised prices by another 33 per cent for new connections and load increases.

Meanwhile, since January 2025, all new gas connections have been completely halted. Only “promised connections” are prioritised—these are applicants who have received company board approvals, deposited the required security, and received demand notes by 13 April.

On 16 April, the Energy and Mineral Resources Division issued a directive to categorise all pending applications into three groups: new connections, load increases, and promised connections. On 18 June, a five-member verification committee was formed, led by an additional secretary. The committee is tasked with evaluating applications, prioritising them, assessing factory readiness, and conducting field inspections.

Officials clarify that under company law, the final authority to approve connections lies with the gas companies’ boards, not the ministry. However, the government can issue specific rules or policies if needed. Factories that can begin immediate operations upon receiving gas should be prioritised.

Muhammad Fouzul Kabir Khan, Adviser to the Ministry of Power, Energy and Mineral Resources, told Prothom Alo that the ministry will not approve connections directly—it must come from company boards. “There are also allegations of connections being granted in exchange for bribes. That’s why the committee is reviewing justification and prioritisation,” he added.

Currently, Bangladesh supplies an average of 2.8–2.9 billion cubic feet of gas per day (mmcfd), while the demand is around 3.8 billion cfd. Industry alone consumes just over 1.2 billion cfd. If all promised connections are granted, demand will rise by at least another 100 mmcfd.

M Shamsul Alam, Energy Adviser to the Consumers Association of Bangladesh (CAB), told Prothom Alo that supply should be ensured before raising prices. “Promising connections just to lure investment is a form of fraud,” he said. He warned that delays and complexities in approvals may lead to corruption, bribery, and discriminatory practices.”

* The report, originally published in the print edition of Prothom Alo, has been rewritten in English by Farjana Liakat