Entrepreneurs are facing problems owing to the ongoing crisis of gas supply through pipelines. Under such a frustrating situation, they are increasing the use of liquefied petroleum gas (LPG) as an alternative fuel to keep their factories running. Even, many are converting diesel-run generators into LPG to cut the cost. The finding of Bonik Barta came following inquiries about different industries in Dhaka and adjacent districts.         

Residential supply of pipeline gas has been stopped for a long time. There is a deep crisis with the existing lines that supply gas to the residences. At the same time, businesspeople are dissatisfied due to the disruption of gas supply to their factories. As a result, the use of LPG is increasing in the country. Ninety percent of 1.4 million metric tons, the annual demand of the country, is used at homes and commercial entities. It is also being used in vehicles as auto gas. In the absence of uninterrupted gas supply, over 500 heavy and medium-sized industries are currently using LPG. Businesspersons concerned have informed that at least another 1,000 factories from different sectors are working to get LPG connection.       

In order to increase the industrial use of LPG, a meeting of the stakeholders was held in November, last year at the Prime Minister’s Office. The meeting discussed in details the potentials, challenges and recommendations. LPG Operators Association of Bangladesh (LOAB) made a presentation calling LPG an alternative fuel and offered technological solutions to different problems. It was decided in that meeting to formulate a set of integrated guidelines on the LPG use in the industries. Energy and Mineral Resources Division said that it is working on that and made good progress in making a draft.

“There exists a LPG guideline. Now, work is on to make it integrated. It will be made public soon,” Energy and Mineral Resources Secretary Nurul Alam told Bonik Barta.

However, the businesspersons are saying that the cost of LPG as compared to natural gas is the main challenge. But, it is cheaper than diesel. At present, a cubic meter gas costs Tk 30 in the industries. The price of per kilogram LPG is Tk 119.4 while auto gas sells at Tk 65.76 per kg. This price is applicable only for January.  

Gas is mostly used at knitwear factories. Most of their generators are run by gas and diesel. Transforming them into duel generators is expensive and problematic. But, a section of businesspersons feels that though expensive LPG is more reliable to ensure unhindered supply.  

The industries have been suffering from gas supply crisis for a long time. Visiting quite a few garment factories in Gazipur and ceramic factories in Narayanganj, it was seen that LPG infrastructures are being constructed on the unused land where mounted or gas storage tanks were set.

A senior official of a garment factory in Gazipur told Bonik Barta on the condition of anonymity that businesses pay the government more for the gas as the supply was supposed to be uninterrupted. But, gas is not there hindering the production very badly. Therefore, despite being costly, LPG system is being put in place to have orders and ensure on-time delivery of the products.  

Some 30 local and international companies are currently selling LPG in the market. Bashundhara, Omera, Fresh, Jamuna and BM are some of the top names. They say LPG has a huge demand in the industries alongside the residences and the dependency on pipeline gas can be reduced to a significant extent if there is a proper guideline from the government.   

When contacted, Tanzeem Chowdhury, Chief Executive Officer of Omera Petroleum Limited, told Bonik Barta, “A proper guideline is necessary for LPG use in the industries. The government will provide a guideline based on which the private companies will develop the marketing. LPG has already been expanded from homes to cars. Expansion to industries is just demand of the time.”

Bashundhara, the leading entity in this field, also says that LPG use has increased. Redwanur Rahman, Head of Sales and Marketing of the company told Bonik Barta, “The industrialists are increasing LPG use in ceramic, textile and garment factories. Considering the cost, many are transforming their diesel generators into LPG ones.”

The stakeholders have submitted to the government the potentials, challenges and recommendations on LPG’s industrial use. LOAB President and East Coast Group Chairman Azam J Chowdhury told Bonik Barta, “Private businesses have made huge investment in the LPG sector. Government assistance in importing equipment will flourish the sector, gradually reducing pressure on natural gas.”

The majority of the country’s natural gas is used to produce electricity. Aside from this, 13 percent is used in homes and 6 percent in CNG segment. The industrialists have been demanding that homes and CNG should be brought under LPG regime and the saved gas should be used in industries and fertilizer factories. This measure will lessen the gas crisis a little.

Bangladesh Textile Mills Association President Mokammad Ali Khokon told Bonik Barta, “LPG in industries is a daring challenge. The use of LPG is expensive. There are also technological challenges. It is better if the government can ensure the use of LPG in homes and CNG sector that will save 19 percent of natural gas. The economic feedback will be significant if this vast amount of gas can be used in industries and producing fertilizers.”