Govt mulls industrial zones in Bhola using locally produced gas

The government has planned to to establish industrial zones in Bhola for using gas of the district to attract local and foreign investment.

BSCIC industrial areas for small and medium entrepreneurs, larger industrial zones for big investors, and an Export Processing Zone (EPZ) will be established there, according to the Energy Division.

In addition, land acquisition has been completed for the construction of a fertilizer factory.

The country’s leading business conglomerate, Pran-RFL, has already begun major private investment.

Another business group, Sheltech, has also set up a ceramic factory in Bhola, with production starting in 2019.

Bhola has reserves of more than one trillion cubic feet (Tcf) of gas.

The government’s power, energy and mineral resources adviser Muhammad Fouzul Kabir Khan, commerce adviser Sheikh Bashiruddin, and industries adviser Adilur Rahman Khan visited Bhola on Friday.

The chairman of the Bangladesh Energy Regulatory Commission (BERC), Jalal Ahmed, and the chairman of Petrobangla, Md Rezanur Rahman, are also expected to join the visit.

Officials concerned say the government has several options regarding the use of Bhola’s gas.

The first is constructing a pipeline to transport gas out of the district. A feasibility study has been conducted for a Bhola–Barishal pipeline. A study is ongoing on transporting gas from Barishal to Dhaka, and a report is expected in December.

The second option is to liquefy the gas into LNG and transport it by ship. No feasibility study has been done for this. CNG transport to Dhaka began during the last government’s tenure. However, only one-fifth of the targeted volume is being transported.

Therefore, a more effective alternative than these three options is being considered—using Bhola’s gas locally.

The people of Bhola have long demanded gas connections for households. The government wants to establish industries there instead. This would benefit the people more than household gas connections. Some essential infrastructure would need to be developed for this. A river port could be built to take advantage of the river route for transporting goods.

Mohammad Saiful Islam, secretary of the energy and mineral resources division, told Prothom Alo that all possibilities are being considered to ensure maximum utilisation of Bhola’s gas.

Plans have been taken to develop three types of industrial zones. Priority will be given to industries that create large-scale employment for local residents. The government is considering supplying gas at low prices to encourage investment in Bhola.

Energy division officials say the current gas price for new industrial plants is Tk 40 per unit; for older plants Tk 30. The government is considering supplying gas to new industrial consumers in Bhola at Tk 30 per unit. This will not cause losses for Petrobangla. However, approval must be obtained from BERC. At present, Intraco purchases Bhola’s gas at Tk 17 per unit and transports it to Dhaka by turning into CNG.

BERC chairman Jalal Ahmed told Prothom Alo that no proposal has been submitted regarding a separate gas price for industries in Bhola. If such a proposal comes, the commission will hold a public hearing and decide.

Bangladesh Petroleum Exploration and Production Company (BAPEX) discovered the Shahbazpur gas field in Bhola in 1995. Production from Shahbazpur began in 2009. Production has not yet started in the Bhola North gas field discovered in 2018, nor in the Ilisha field discovered in 2023.

BAPEX produces gas in Bhola, and Sundarban Gas Distribution Company purchases it from BAPEX and distributes it to consumers. According to Sundarban Gas, major consumers include three power plants, two captive power units (in industries), and one industrial factory.

Demand for gas in Bhola has not grown significantly. Transporting gas outside the district in cylinders began in December 2023. Although the target is to transport 5 million cubic feet per day, only 800,000 to 900,000 cubic feet are currently being transported.

Pran-RFL plans to invest Tk 60 billion (6000 crore) to build an industrial park on 1,000 acres of land in Veduria of Bhola Sadar upazila. This could create direct employment for more than 25,000 people. They intend to implement the plan primarily by utilising Bhola’s gas.

Pran-RFL says that most factories in the country are located in and around Dhaka, where gas shortages are severe. Therefore, they are focusing on establishing factories in areas where gas is readily available.

Pran has already built a massive industrial park employing 35,000 people in Shayestaganj, Habiganj. The Bhola industrial park will go into full production by 2028. After Habiganj, this will be their second-largest industrial park.

Once this project is implemented, there will be no need to build an expensive pipeline costing billions to transport Bhola’s gas outside. In addition, this investment could encourage others to invest, creating opportunities for new industrial zones in the southern region.

Ahsan Khan Chowdhury, chairman of Pran-RFL Group, told Prothom Alo that Bhola is promising for investment. The government can supply gas there at comparatively lower prices. Ferry services need to be expanded, and roads, healthcare facilities, and fire service capabilities must be improved. A river port could be built, and the government can seek support from the private sector for this. It would encourage entrepreneurs to invest and transform Bhola’s socioeconomic landscape.

Pran-RFL plans to produce items in the Bhola industrial park that require large volumes of gas, including pipes, floaters, injection-molded products, chairs, water tanks, tables, doors, toys, footwear, ceramics, and glassware. These products will be sold in the domestic market and exported abroad.

Pran-RFL officials say an initial investment of Tk 1.2 billion is being made. Construction of factory infrastructure has started. The project will create employment for 2,000 people—including construction workers—within this year. Production will start next year.

Pran-RFL is planning to use river routes for transporting goods. This would allow easy movement of products to nearby Payra and Mongla ports. It would reduce pressure on road transport and increase the use of both ports.