Acute gas crisis hampers production in industries

Around 450 factories in Narayanganj have been suffering from an acute gas crisis. Factories in two other industrial areas—Savar and Gazipur’s Sreepur—are also facing a similar problem. Production in dyeing factories, spinning mills, and other industries is being hampered due to the gas crisis. The situation is comparatively better in industries in Habiganj, Narsingdi, Mymensingh’s Bhaluka and Chattogram. The factories in these areas are also getting less gas than demand, but they can somehow manage with the supply they currently have.

Prothom Alo talked with at least 10 industrialists from Fatullah, Bandar, Rupganj and Araihazar upazilas. They said that there has been a shortage of gas for a long time. The production was running fairly well in the last three months as there was gas pressure for 6-7 hours at night and on weekends. However, the gas shortage has become so acute since the beginning of January that there is no gas to run the factory either day or night. Some factories are trying to run their production by arranging alternative systems with extra cost. Industrialists said incidents such as workers’ layoffs and even closure of factories might take place if the gas crisis is not solved immediately.

Petrobangla said the daily demand for gas in the country is 3.8 billion cubic feet. No major problem does not arise if the supply is around 3 billion cft. But this amount of gas supply is not available right now. The production of gas is decreasing in the country. LNG imported in less than the required amount. Now the supply of gas has come down below 2.5 billion cft per day. It has been seen that the industries in some areas including Narayanganj face more crises when supply is decreased.

Bangladesh Textile Mills Association (BTMA) president Mohammad Ali told Prothom Alo that the gas crisis has been extreme in the last two weeks. Narayanganj’s Fatullah, Rupganj and Araihajar and Gazipur’s Sreepur and Savar areas are worst hit by the crisis. Dyeing factories in these areas are hit the hardest.

In response to a question, the BTMA president said, "No one at the top level of Petrobangla or Titas talks about the gas crisis. None can be reached over the phone now. We are tired of it.”

A garment factory named Fair Apparels at BSCIC Industrial Area in Narayanganj’s Fatullah has set up 14 large LPG cylinders on the ground floor of its building. The owners of the factory have made this arrangement to run the factory's iron facing the long-standing crisis in pipeline gas supply. However, the production of their dyeing unit has come down to 25 per cent due to the gas crisis.

Fair Apparels’ managing director Mohammad Kashem told Prothom Alo, “Our dyeing unit can dye 30 tonnes of fabric per day. But we could dye only 7,6 and 7 tonnes on 13,14 and 15 January due to gas-crisis. This amount could be produced by the small pressure of gas at night and electricity from DESA (Dhaka Electric Supply Authority).  But the daily demand in our industry is at least 15 tonnes.”

Kashem said the factories already bear the brunt of the gas crisis. At least 500 workers were laid off in the last six months and the factory cannot accept work orders as per capacity.

Fakir Apparels is one of the top RMG exporters in this industrial area. The factory exports readymade garments worth USD 12 million to 13 million per month. A total of 12,000 workers are employed in the factory.

Production of the dyeing unit of Fakir Garments has decreased due to the gas crisis. Bakhtiar Uddin Ahmed, chief operations officer of the factory, told Prothom Alo, “Our dyeing unit has the capacity of dyeing 40 tonnes of fabric per day. Due to gas shortage, we can dye 28 tonnes at best using LPG and diesel. We are spending an extra Tk 1.5 million to avail these alternatives of gas.”

A total of 55 per cent of the yarn production capacity of Little Star Spinning Mill in Bhulta of Rupganj upazila remains unused due to the gas crisis. The mill can produce 120,000 pounds of yarn per month.

Little Star Spinning Mill’s chairman Mohammad Khorshed Alam told Prothom Alo, “Pressure of gas is very low for three weeks. We are incurring a loss of Tk 27 per pound of yarn as production has decreased.”

The industrialists in Bandar upazila said the factories have been facing acute gas shortages for the last month. Two entrepreneurs said they did not get any gas pressure to run their production since 16 December.

Total Fashions’ managing director Md Hasib Uddin Mia said, “We are suffering with our 2000 workers. We export worth USD 2.5 million to 3 million every month. Our export has now decreased to Tk 600,000 as our dyeing unit has been closed for a month.”

Hasib said work orders worth USD 400,000 were canceled as the factory failed to make shipment on time.

Authorities in Bashar Paper Mill, a paper mill in the upazila, said their production has decreased by 80 per cent due to the gas crisis. A total of 40 workers are employed in the factory.

Bashar Paper Mill’s manager Mostafa Kamal told Prothom Alo on Tuesday evening that the pressure of gas ranges between 1 and PSI for 3 to 4 hours at night. Using diesel generators alongside the gas at that time, the factory could produce 5 to 7 tonnes of paper. But the production cost has doubled due to the use of diesel.

Titas Gas’ deputy general manager Mamunur Rashid told Prothom Alo that Narayanganj’s gas pipeline is old. Also, the number of customers is comparatively more than the capacity of the pipeline. That’s why gas crisis is a perennial problem in Narayanganj. The situation has been exacerbated as the nationwide supply of gas has decreased.

Mamunur Rashid said he does not know when the crisis will end.

Bangladesh Knitwear Manufacturers and Exporters Association’s (BKMEA) executive president Mohammad Hatem said the government has to prioritize supplying gas to industries.

He said the government should determine whether it should supply gas to fertilizer factories or industries. Some fertilizers cost less to import than to produce locally. It is necessary to stop the production of those fertilizers and give gas to the industries.

Factories will be closed if such shortage of gas continues and many workers will lose their jobs, he added.