LNG squeeze leaves Ctg 80 mmcfd short, hitting industries hard
Apparel makers say low gas pressure hurts dye quality and doubles costs with alternative fuels
Chattogram is grappling with a gas shortage of around 80 million cubic feet per day (mmcfd), disrupting both industrial output and household consumption – a situation energy sector officials link to inadequate liquified natural gas (LNG) imports.
The region, which relies entirely on imported LNG, receives its gas through the Karnaphuli Gas Distribution Company Limited.
According to Karnaphuli Gas data, gas supply has dropped to around 250 mmcfd, compared to a daily demand of 312-350 mmcfd across sectors such as industries, power plants, fertiliser factories, households, and CNG stations. On 5 May, the region received just 267 mmcfd.
Keep updated, follow The Business Standard's Google news channel
The shortage has hit gas-reliant sectors the hardest, particularly heavy industries, cement factories, and garment manufacturers.
Chattogram is home to over 3,000 factories, including 1,200 heavy industrial units. Among the most affected are the steel, cement, ship-breaking, corrugated sheet, and RMG sectors.
Aminur Rahman, general manager (Operations) at Karnaphuli Gas, told TBS that only one of Chattogram's two fertiliser plants – Karnafuli Fertiliser Company (Kafco) – is currently operating, as gas supply to Chittagong Urea Fertiliser Limited (CUFL) remains suspended.
The impact extends beyond industries. According to Karnaphuli Gas, Chattogram has over 6 lakh gas consumer connections, including households, now experiencing supply disruptions.
Of the total daily demand of 312-350 mmcfd in Chattogram, industries require 50-60 mmcfd, residential users 35 mmcfd, Kafco 46 mmcfd, CUFL 44 mmcfd, the Raozan power plant 40-42 mmcfd, and the Shikalbaha power plant 32-37 mmcfd.
When asked if industries are facing a greater shortage than households, Karnaphuli Gas GM Aminur Rahman said industrial units do not have dedicated gas lines; they share the same supply network as residential users. "We don't believe the shortage is specific to industries."
Industries cry out as pressure drops, costs rise
Industrial factory owners have long raised concerns over low gas pressure and its impact on production costs and exports.
Amirul Haque, managing director of Premier Cement, told TBS that the gas shortage persists, forcing factories to spend additional funds on energy just to keep production going. This has led to rising operational costs. For the country's industrial sector to progress, the ongoing gas crisis must be swiftly addressed.
Rimon Barua, general manager (production) of GPH Ispat, said when gas supply pressure is low, production must be halted, making it challenging to meet production targets.
Apparel sector entrepreneurs said low gas pressure affects colour quality in textile factories. To maintain production using alternative fuels, the costs more than double.
Former BGMEA vice president Rakibul Alam Chowdhury said, "Due to the gas crisis, garment factories in Chattogram are in a tight spot. Those with urgent shipments are continuing production using alternative fuels, but this is doubling their expenses."
Reduced LNG imports at heart of supply crunch
Since Chattogram's gas supply relies on LNG, any decrease in supply from the Maheshkhali LNG terminals in Cox's Bazar intensifies the gas crisis, according to Karnaphuli Gas officials.
The two floating LNG terminals in Maheshkhali, Cox's Bazar, have a combined daily LNG supply capacity of around 1,100 mmcf with adequate imports. However, due to lower imports, maintenance, and other factors, the LNG supply has at times decreased by 300-400 mmcfd.
The Rupantarita Prakritik Gas Company Limited, a state-owned subsidiary of Petrobangla, is responsible for managing LNG import activities.
Its General Manager (LNG) Md Shah Alam, confirmed that LNG is not being supplied as per capacity due to low imports. The two privately run LNG terminals are now supplying around 800 mmcfd, with 840 mmcfd supplied on 5 May.
CUFL shut down amid gas crisis
The Chittagong Urea Fertiliser Ltd has been out of production since 11 April due to the gas crisis, after Karnaphuli Gas cut off its gas supply.
Uttam Chowdhury, head of Operations at CUFL, told TBS that the factory used to receive 44-45 mmcfd gas from Karnaphuli Gas and produced around 1,150 tonnes of fertiliser daily.
"The factory is now completely shut due to the lack of gas. We're waiting to resume production, but we don't know when the gas supply will restart," he said.
