Industrial production slumps amid growing gas crisis
Daily Sun Report
Published: 28 Apr 2025
Photo: Collected
Despite rising demand, gas supply continues to dwindle across Bangladesh. While the national grid supplied nearly 3,000 million cubic feet per day (mmcfd) of gas two years ago, that figure has now dropped to 2,698 mmcfd. The widening gap between demand and supply is severely impacting industrial output, particularly in the ceramics, steel, and textile sectors, which have seen production fall by almost half.
The shortage isn't limited to factories—CNG stations, households, and other sectors are also facing reduced gas availability. At the same time, gas prices for industries and captive power generation have been hiked by 33 percent. This has left industrialists frustrated, as the price increase was implemented without improving supply.
Entrepreneurs report that the gas crisis has plunged the industrial sector into disarray, with hundreds of factories shut down, exports declining, and investment stalling. Employment growth has also slowed. Industrialists warn that without reliable gas and electricity supplies, economic growth will stagnate.
Officials at the Energy Division and Petrobangla admit that domestic gas production has been falling for years. To address the shortfall, the interim government has ramped up imports of liquefied natural gas (LNG). However, the growing power demand means gas is being prioritised for power plants—still not enough to meet the Bangladesh Power Development Board’s needs.
According to Petrobangla, the current national gas demand is around 4,200 mmcfd, but only 2,698 mmcfd was supplied on Sunday. Of that, 1,842 mmcfd came from domestic fields, and 856 mmcfd from imported LNG.
Industrial hubs like Chattogram, Gazipur, Savar, Narayanganj, and Narsingdi are among the worst affected. Factories there are operating intermittently due to inadequate gas pressure, with many unable to run captive power plants. Some are resorting to costlier alternatives like LPG, further eroding profits.
Moinul Islam, President of the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA), said gas shortages have severely impacted the ceramics industry, its primary energy source. Several factories have already closed. Production in Gazipur and Narsingdi has dropped by 50 percent, while factories in Savar and Dhamrai have slashed output by 75 percent.
Engineer Kazi Mohammad Saidul Islam, General Manager (Operations) at Titas Gas Transmission and Distribution Company, confirmed that the company cannot supply gas as per demand due to increased allocation to power plants. He expects some relief from early next month as LNG imports increase.
Energy Adviser Mohammad Fawzul Kabir Khan noted that domestic production is declining while Bangladesh lacks the financial capacity to import sufficient LNG.
In Gazipur, factory gas pressure has dropped to one-third of the required level. Sabina Yasmin of Keya Group said they need 250,000 cubic feet per hour but receive less than 150,000. With authorised pressure at 50 PSI, peak-time pressure drops to just 5–7 PSI, making it impossible to operate all machines.
In Chattogram, gas shortage has forced many factories to stop production. Of the 32 planned factories at the Sad Musa Industrial Park, only nine are operational. At CUFL, gas supply has been halted for 18 days, costing the plant Tk 30 million in lost daily production.
Production in Savar and Ashulia has also been severely disrupted. With pressure falling below half of the required 15 PSI, factories are operating on a stop-start basis, using costly LPG and diesel as alternatives. Engineer Md Mahmudur Rahman Bhuiyan of Titas said they are supplying only 80–90 MMCFD to the area against much higher demand.
Factories in Keraniganj are similarly affected, many unable to get gas during the day. Businesses are forced to use LPG to maintain minimal production. Arshad Rahman of Arshad Engineering said they pay their gas bills regularly despite low daytime pressure.
In Narsingdi, many textile mills have been forced to shut down during the day due to low pressure. Abdul Kaiyum Molla of MMK Dying Industries said the pressure is often too low to run machinery. Factory owners now face rising costs, idle workers, and increasing pressure from bank loans.
Sheikh Mohammad Rumon of MR Tex Sizing Ltd reported that production has dropped to just 10 percent, with gas unavailable from 8am to 1pm and entirely shut off from 3pm until midnight.