Energy crisis disrupts production, puts exports at risk, and employment of millions of workers

❐ Staff Reporter

The country’s industrial sector is currently under unprecedented pressure due to the severe energy crisis. Due to the gas shortage, the production capacity of most gas-dependent industrial enterprises has dropped below half. Many factories have been forced to completely shut down production, while many enterprises are only able to operate for a few hours a day.

Industrialists fear that if the crisis continues, payment of workers’ salaries and allowances, implementation of export orders, and normal industrial operations will be severely disrupted. This could also have an impact on employment, bank loan repayments, and the overall economy.

According to relevant sources, although the country has a daily demand of about 4 billion cubic feet of gas, only 2.2 to 2.3 billion cubic feet are currently being supplied. As a result, there is a daily gas shortage of about 1.8 billion cubic feet.

The closure of a floating LNG terminal in Maheshkhali, built by the Sheikh Hasina government, due to lack of proper maintenance, has significantly reduced gas supply to the national grid. This has directly affected the industrial, power, residential, commercial and CNG sectors. The country’s major industrial areas are suffering the most.

Production in many factories in Gazipur’s Kaliakoir, Konabari, Tongi, Sreepur, Mouchak, Chandra and Board Bazar areas has decreased by 50 to 60 percent. In some places, gas pressure has dropped to almost zero.

While industrial plants typically require 10 to 15 psi of gas pressure to operate, many locations are only getting 1 to 3 psi. This has made it difficult to keep boilers, generators, and production equipment running. This is also raising concerns about the timely delivery of products to foreign buyers.

Most of the country’s export-oriented industries, including ready-made garments, textiles, steel, ceramics, paper, spinning, particle board, plastics, and dyeing, are gas-dependent.

Entrepreneurs say that without uninterrupted gas supply, it will not be possible to complete production on time. Although many companies use diesel or LPG as an alternative, this is significantly increasing production costs and reducing competitiveness in the international market.

According to the Bangladesh Textile Mills Association (BTMA), most industrial establishments are only able to utilize 60 to 70 percent of their installed capacity due to the energy crisis.

According to Titas Gas, many of the more than 4,500 industrial customers under their jurisdiction are not getting normal gas pressure. In Ashulia, where it is supposed to be 70 PSI, it has dropped to about 30 PSI. Similarly, in Aminbazar, instead of the daily supply of 80 million cubic feet of gas, only 40 million cubic feet are being provided.

About two to two and a half thousand factories in various industrial areas including Narsingdi, Madhabadi, Rajendrapur, Konabari, Chandra, Savar-Ashulia, Hotapara, Netrokona, Jamalpur and Bhulta are being directly affected by this crisis.

Steel industry entrepreneurs said that gas pressure has been so low for the past few days that many steel mills are practically forced to stop production. Ceramic industry entrepreneurs have also reported a similar situation.

According to them, the industrial areas of Gazipur, Manikganj, Narayanganj and Narsingdi are the most affected. If this crisis lasts longer, the negative impact on investment, production and exports will be even more severe.

BTMA President Shawkat Aziz Russell said that due to the gas crisis, more than 50 industrial plants have completely stopped production. Many other institutions are producing at half their capacity or even less.

He warned that if this situation continues for a long time, the effective capital of many organizations will be exhausted and it will become difficult for many industries to survive. Many entrepreneurs are paying salaries and allowances to workers despite stopping production. This will also have a negative impact on bank loan repayments, government revenue collection and the overall economy.

He stressed the importance of ensuring uninterrupted gas supply for industry, saying that even if supply to other sectors is reduced if necessary to deal with the ongoing crisis, gas supply to industry must be maintained normal.

Meanwhile, textile sector entrepreneurs are scheduled to meet with Power and Energy Minister Iqbal Hassan Mahmud Tuku on Tuesday to determine what to do about the situation.