Gas shortage: Production halted in four fertiliser factories in Chattogram

Gas shortages and mechanical failures have led to production halts in Chattogram's Karnaphuli Fertiliser Company (Kafco), Chattogram Urea Fertiliser Limited (CUFL), DAP-1, and DAP-2 fertiliser plants.

The Bangladesh Chemical Industries Corporation (BCIC), which facilitates the transportation of fertilisers from these factories to the rest of the country, said gas shortage in the port city along with some mechanical issues is the reason for the production halt.

"Gas serves not only as a fuel but also as a raw material for fertiliser production in these factories. We have enough supply of fertiliser for the next two months. But, if the gas crisis does not end by then, there will be a shortage of fertiliser in the market," said BCIC General Manager (Operation) Mohammad Mostafizur Rahman Patwari.

He also said, "There is hardly any scope for importing fertiliser now."

Mostafizur said the situation will improve once the gas flow normalises and the production machines are repaired.

Meanwhile, Agriculture Minister Md Abdus Shahid yesterday said there is a sufficient stock of fertiliser in the country and there will be no shortage of fertilisers during Boro season.

"The potential demand for urea till March is 8.86 lakh tonnes, against which the total of current stock and potential pipeline will be 13.51 lakh tonnes. Similarly, 3.88 lakh tonnes of TSP will be stored against a demand of 2.41 lakh tonnes; 4.76 lakh tonnes of DAP will be stored against a demand of Tk3.14 lakh tonnes; and 5.27 lakh tonnes of MoP will be stored against a demand of 2.23 lakh tonnes," he said.

Both Kafco and the CUFL are vital players in Bangladesh's fertiliser production scene.

CUFL General Manager (Operation) Pradip Kumar told The Business Standard the factory was shut down on 18 January due to the gas crisis.

"As the gas supply normalised, we are now on start-up and will go into production in a few days", he added.

"The DAP-1 and DAP-2 plants are dependent on the CUFL. So, once the CUFL goes on production, their production will also resume," the official said.

Replying to a query he said, the CUFL requires 41 million cubic feet (mmcf) of gas per day to keep its production continuing.

Sources in Kafco said the factory also had to halt its production on 18 January due to a sudden stoppage of gas supply which requires at least 50-54mmcf gas per day to continue its production.

Around 550,000 tonnes of fertiliser is transported to various warehouses across the country annually from Kafco alone.

Initially, the Kafco and CUFL factories in Chattogram were closed due to mechanical problems. Later, gas supply shortages disrupted production. Again, after the gas supply resumed, mechanical problems caused the production to stop.

Normally, over 2,000 tonnes of fertiliser are expected to be dispatched daily from Chattogram to buffer warehouses across the country.

Due to the ongoing production issues, supply has been halved, causing concerns among stakeholders about the potential ramifications on the country's agricultural productivity.

The shortage is particularly acute for marginal farmers who, despite taking loans, find themselves desperate to fertilise their land on time.

Dr Moshiur Rahman, chief scientific officer at the Bangladesh Agriculture Research Institute's Chattogram Regional Office, emphasised the critical role of fertiliser in the nation's agricultural production, with a current demand of approximately 57.5 million tonnes of chemical fertilisers.

"Of this, 26.5 million tonnes are urea, while TSP and MOP fertilisers account for 7 million each and DAP 16.5 million tonnes. The prolonged use of fertilisers has altered the character of the country's land, making them indispensable for achieving expected yields from agricultural fields," he added.

"If there is a shortage of fertiliser in the peak season of cultivation, agricultural production will be hampered severely endangering the food security of the country," he said.  

A week back, a mechanical malfunction at an LNG (liquefied natural gas) terminal in Maheshkhali, Cox's Bazar, disrupted gas supply to the entire Chattogram district for over 12 hours.

The gas cut-off affected Chattogram's major industrial and commercial sectors, including fertiliser and power plants and other gas-dependent industries.

Previously, during gas shortages, gas from Sylhet and Cumilla regions was routed through the Ashuganj-Bakhrabad pipeline to bring to Chattogram.

However, since the start of LNG imports, this pipeline was modified to be one-way, meaning gas can only be supplied from Chattogram.

According to Karnaphuli Gas Distribution Company, Chattogram has a daily demand of 312-350mmscfd of gas. Of this, 90-100mmcfd is supplied to two fertiliser factories, 40mmcfd to power plants, and 19mmcfd to CNG filling stations. The remaining gas is supplied to residential and commercial customers.