Jamalpur Economic Zone faces uncertainties over gas connections

Highlights:

• Gas shortages delay production at Jamalpur Economic Zone factories
• Only one of 19 companies received gas connections
• Nearly $200 million in planned investments remain stalled
• Several completed factories cannot begin operations without gas
• Companies resort to costly LPG and backup power
• Zone infrastructure ready, but energy supply blocks progress

Industrial production at the Jamalpur Economic Zone may be further delayed due to the lack of gas connections. While most investors are about to complete the construction work for their factories, they are yet to get connected to the gas grid.

According to the Bangladesh Economic Zones Authority (Beza), around 19 industrial companies have been allotted land in the zone for production, with total proposed investments of nearly $200 million. However, so far only one company has received a gas connection.

Infograph: TBS

As a result, several companies who have completed factory construction are unable to start operations. Relevant officials said many of these firms could begin production once gas connections are provided.

Beza sources said that by 2022, gas pipeline infrastructure had been extended to each industrial plot in the zone. Since then, multiple letters have been sent to Titas Gas Transmission and Distribution Company Limited and the power, energy and mineral resources ministry requesting gas supply.

During the tenure of the interim government, meetings were held on the issue and one company was provided gas. Beza is now waiting for initiatives from the new government. It believes that around 10 companies could go into production within the next two years if gas supply is ensured.

Trial production planned using cylinder gas

Some companies, unable to secure gas connections, are preparing alternative arrangements. Among them, Swift Shield Bangladesh Limited is planning to begin trial production using LPG cylinders.

The company has set up a latex examination gloves factory with an investment of about $1.17 million but has not yet been able to start production due to the lack of gas.

Managing Director Muhammad Sharif Khan told TBS, "It has been more than a year since we were allotted the plot. We applied for a gas connection about eight months ago, but have not received it yet."

He said the factory's infrastructure work is nearly complete and production could begin once gas is supplied.

"In the absence of gas, we are preparing to use LPG for now, which is significantly increasing production costs," he added.

Sharif Khan also noted that uninterrupted electricity supply is crucial for their industry. "Even occasional load shedding disrupts the production process, so we have to arrange generators and UPS as alternatives. There is load shedding for about one to two hours daily."

The factory is expected to employ around 100 people.

Minmetal BD Limited has also set up a factory to manufacture high-quality metal fittings with an investment of about $2.77 million and is awaiting production.

Other planned projects include Bioleap Industry Ltd (medical and surgical items), Bioleap Agro Industry (agro-based factory), Q Celsius Jamalpur Ltd (composite garments factory), MAZ Textiles Ltd (RMG dyes and textile chemicals), and Baridhara Packaging Limited (packaging industry).

Many of these companies have already begun construction but remain concerned about securing gas connections.

Resaschemie Bangladesh Ltd has completed about 98% of their construction, according to a company official.

Motiar Rahman, Head of Accounts & Finance, told TBS: "Only some finishing work remains. Machinery has already arrived. But without gas connection, we cannot start operations—this is currently our biggest challenge."

He added that they applied for gas connection several months ago but have yet to receive approval. Once connected, they will be able to begin production.

Rahman said the project includes about $12 million investment in textiles and $7.7 million in industrial chemicals. Once fully operational, it will create around 1,000 jobs in textiles and over 200 in the chemical unit.

There are also several large investments in the zone. Among them, Fervent Multiboard Industries Limited has set up a factory to produce wood and jutex particle boards with an investment of about $93 million. It is the only company that has received a gas connection so far. 

Durjoy Khokshi, Jamalpur manager of Titas Gas – the company responsible for supplying gas to the Jamalpur Economic Zone – told TBS, "The decision to provide gas connections here is not ours. The directive has to come from the Ministry of Power, Energy and Mineral Resources; only then will we proceed. 

"Gas has already been supplied to one company, and the process of providing connections to the remaining ones is underway. Information regarding this has been sent to the ministry."

Power, Energy, and Mineral Resources Minister Iqbal Hasan Mahmud Tuku told TBS, "We are under some pressure over gas. Our top priority is industry, and if we get gas, our plan is to supply industries first. 

"We are trying to increase gas production, as no serious effort was made to extract gas during the Sheikh Hasina government. We are now trying to drill wells."

'Gas shortage is the biggest challenge'

Beza Executive Member Major General (Retd) Md Nazrul Islam told The Business Standard, "The biggest challenge for investment in these economic zones right now is the shortage of gas connections."

He said that although many investors are interested in setting up industries in the Jamalpur Economic Zone, implementation has become difficult due to inadequate gas supply.

According to him, a significant number of local and foreign investors remain interested, but without ensuring necessary energy supply, many investments cannot move forward.

Nazrul Islam added that gas supply infrastructure in the zone is ready, and industries can start using it as soon as supply begins. He also noted that one company had received gas during the interim government period, though more connections had been planned but not implemented.

Expressing hope, he said, "Energy supply is linked to broader national planning. The new government will consider this seriously. There may be clearer progress after Eid, and by April we should have a better idea regarding gas connections."

Gap between vision and reality

Nearly a decade ago, the initiative to establish this economic zone in Digpai area of Jamalpur Sadar upazila was taken to boost industrialisation. Built on more than 400 acres, the zone was planned to host garments, agro-based industries, medical products, and consumer goods manufacturing.

The primary objectives were to accelerate industrialisation, create employment, and reduce regional disparities. However, despite having infrastructure ready, industrial operations have yet to fully begin due to the gas crisis, leading to growing frustration among investors and delaying potential job creation.

The Jamalpur Economic Zone, the first government economic zone in Mymensingh division, spans 436 acres and is expected to directly employ about 32,000 people.

Essential infrastructure – including gas pipelines, a 33/11 kV substation, administrative and dormitory buildings, groundwater reservoirs, and boundary walls – has already been completed. Around 20 companies have signed lease agreements; three are expected to begin production soon, while nine are currently under construction.