Just a few days ago, an industrial factory in Savar’s Nama Genda area used to operate round the clock. Now, however, production remains shut down for most of the day. Workers can only begin operations when gas supplies resume after 11:00 pm. By morning, the gas pressure drops significantly, forcing production to halt once more. This precarious situation has persisted for about a month.
Alam Mia, the general manager of the factory, said, “Ever since the gas crisis emerged, gas hasn’t even been available from CNG filling stations. When we send containers, they send them back. This has been the condition for a month, and all gas-dependent operations are halted. We handle washing processes here, for which there is no alternative to gas. Now, we keep the factory closed during the day and run it at night when the gas arrives.”
Such scenes are currently prevalent across many industrial zones in the country. With production severely hampered in factories, workers are gripped by the fear of losing their jobs.
The impact of the gas crisis has rippled through nearly all industrial plants in the Savar and Ashulia regions. The standard pipeline gas pressure is supposed to be 20 PSI, according to individuals associated with various factories, while factories usually receive 8 to 10 PSI under normal circumstances. That pressure has now plummeted to a mere 2 to 3 PSI, making it impossible to maintain normal factory production levels.
Speaking on condition of anonymity, the general manager of a large industrial plant in Savar told Bonik Barta, “Due to the crisis in gas pressure, we can’t operate our boilers. Running a single boiler requires a gas pressure of at least 5 PSI, whereas we’re only getting 2 to a maximum of 3 PSI. We are consequently trying to maintain production using alternative fuels. While this keeps production from dropping drastically, it drives up operating costs significantly. If such conditions persist in the long term, it’ll inevitably impact international market competitiveness.”
Many are worried about the rising production costs due to the use of alternative fuels. They fear that if they increase product prices, foreign buyers will turn away and shift their orders to neighbouring countries.
Due to low gas pressure, Winter Dress Limited is incurring an additional monthly cost of BDT 3 million to 3.5 million just for diesel. The company’s general manager, Md Rafiqul Islam, said, “Nearly 5,000 workers are employed at the factory. They aren’t receiving an uninterrupted supply of gas and electricity to keep production normal. Production planning is consequently being disrupted, creating uncertainty regarding the timely delivery of orders to buyers.”
The impact of the gas crisis has also affected the ceramics industry. Due to the lack of adequate gas, Monno Ceramic and Protik Ceramics in Dhamrai are finding it difficult to keep their kilns operational and supply products or fulfil export orders on time.
The gas crisis has also impacted CNG stations. Bijoy Hossain, a cashier at Sahara CNG Station in the Radio Colony area of Savar, mentioned that normally, at least 3 to 4 PSI of gas pressure is required to operate a CNG station. But they are sometimes receiving zero or only 2 PSI of pressure. Consequently, even though hundreds of vehicles arrive at the station, they cannot provide gas.
The gas crisis has also intensified in the industrial zones of Narayanganj. Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said that production in almost all factories in Narayanganj was halted yesterday. He told Bonik Barta, “Factory production is being severely disrupted. Many factories are declaring holidays because there’s no fuel to work with. Production was stopped in almost all factories in Narayanganj today (yesterday). Some had to close at noon. In some factories, workers arrived only to find that there were no conditions to work, so they were given the day off. In the current situation, we’re broadly able to utilise only 30 percent of our production capacity.”
In Gazipur, the situation is far from normal, with daily gas demand for residential and industrial sectors standing at 590 to 600 million cubic feet. Against this requirement, only 250 to 270 million cubic feet were supplied on Wednesday and Thursday. Gas is consequently unavailable in many areas, and where it is accessible, the pressure remains extremely low.
Suruj Alam, deputy general manager of the Titas Gas Gazipur Sales Division, said that two to three months ago, it was possible to supply up to 450 million cubic feet of gas at maximum. The supply has now dropped to nearly half of that amount. Without adequate gas, meeting the actual demand is impossible. But instructions are always in place to distribute whatever gas is received through proper management.
Gas is currently being supplied at a mere 2 to 4 PSI of pressure, forcing many units to remain shut, according to factory-related people in Gazipur. This condition has persisted for about a month. Some facilities are running their boilers on diesel, which incurs three to four times the cost of gas. While large factories have managed to stay operational for short periods, medium and small factories face severe risks of permanent closure.
Shovon Islam, former director of BGMEA and managing director of Sparrow Group, remarked, “Electricity is absent for about six hours every day, allowing us to run factories for only 10 hours daily, and forcing us to curtail production and shutter numerous units. The gas crisis also compels us to operate boilers using diesel.”
He added, “On one front, we grapple with electricity and gas shortages, while on another, global conflicts and container congestion are creating shipment complications for goods. Our lead times are inherently longer than those of other global competitors, and the current multiple crises are stretching import and export lead times even further.”
As factory owners in Gazipur work in three shifts to take advantage of whatever gas pressure they receive, production in 10 to 15 percent of the factories in the district is being disrupted due to the crisis.
Amzad Hossain, superintendent of Gazipur Industrial Police, said that they have no official information regarding factory closures due to the gas crisis.
In the industrial areas of Mymensingh, production is also being hampered by low gas pressure. Although workers joined their shifts yesterday morning, workers from 20 factories were phased out with early leaves by lunchtime. According to Industrial Police records, production in the major factories has dropped by an average of 50 percent.
There are 293 industrial factories in the Mymensingh industrial zone, of which 99 are gas-fired. Sources report that nearly all gas-fired factories are currently facing crises, with partial production being maintained using generators and electricity.
Textile and yarn-manufacturing mills are bearing the brunt of the gas crisis. At Toyo Spinning Mills in Gouripur, 43 out of 50 machines have had to remain shut, while the remaining seven are being run on PDB electricity. In Bhaluka, Sheema Spinning Mills has completely shuttered 30 machines, causing a 50 percent drop in production.
Production has also fallen by 50 percent or more at Basher Spinning, Nortex Textile and Delta Spinners, while Experience Textiles has 40 percent of its machines idle due to a lack of normal gas pressure. In the ceramics sector, the shutdown of the furnace at Excellent Ceramics has caused production to plummet below half.
Industrial police sources noted that due to low gas pressure yesterday, 20 institutions — including Mahadi Sweaters Ltd., Sultana Sweaters, Liz Fashion, TM Textile, Trishal Textile, and BSB Spinning Mills — gave their workers early leave during the lunch hour.
In Bhaluka, a manager of a textile and garment factory, speaking on condition of anonymity, said that gas pressure has been low for about a month and a half to two months. Despite the factory requiring a gas pressure of 15 PSI, only 11 to 12 PSI is available, resulting in a 3 to 4 percent drop in production.
The incidents of factory closures and reduced production in industrial areas due to the gas crisis have sparked fears of job losses among workers. Industrial Police Additional IGP Gazi Jasim Uddin told Bonik Barta yesterday evening, “There are such fears among the workers, but to our knowledge, the government has initiatives underway to normalise the situation. Workers are naturally bound to feel anxious in the current circumstances because without production, entrepreneurs can’t pay wages, and failing to pay wages would eventually lead to declaring layoffs. So the workers’ concerns are valid, but we believe the problem will be resolved through government efforts.”
But Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), said that the fear of worker layoffs has indeed become a reality. In his words, “Every day we’re receiving layoff letters. Many workers will lose their jobs.”
Speaking to Bonik Barta yesterday evening, he said, “Due to the gas crisis, production is halted in 900 out of 1,850 factories under our association. If this situation continues, the industry won’t survive.”
They have demanded a reduction or waiver of interest rates for as long as factories remain closed, along with a two-year grace period for repaying bank loans.
This report was prepared with assistance from Bonik Barta’s Savar, Ashulia, Gazipur and Mymensingh correspondents.