Industries in Chattogram are not receiving any new gas connections, while over the past year, only four to five connections have been issued.
This issue extends beyond industries, as no new connections are being made in other sectors either. The primary cause is an ongoing gas crisis.
Currently, Chattogram has around 1,200 industrial gas connections, but approximately 300 factories have shut down due to financial difficulties, including issues with bank loans.
Meanwhile, about 130 applications for new connections remain pending, even though many applicants have already paid the required demand note fees.
As the location of the country’s main seaport, Chattogram is a prime choice for both domestic and foreign investors due to its strategic advantages. The port allows for efficient import and export operations.
However, when space in Chattogram is unavailable, investors turn to other regions. Unfortunately, the severe gas crisis is significantly hindering investments in Chattogram.
Earlier, the Awami League government doubled industrial gas prices, raising them to 30 BDT per unit. This sharp increase adversely affected export-oriented industries.
Now, proposals to double gas prices again have left industrialists anxious, prompting them to urge the government to reconsider the price hike.
A senior official from KGDCL (Karnaphuli Gas Distribution Company Limited) reported that the Maheshkhali LNG terminal currently supplies approximately 900 million cubic feet of gas daily, of which only 260 to 270 million cubic feet are allocated to Chattogram.
Experts believe that increasing the allocation to 400 million cubic feet per day could revitalize both new and existing industries. However, reports suggest disputes over the distribution of gas to Chattogram, exacerbating the crisis and halting investment.
Industry sources note that since the introduction of LNG, gas supply from the national grid to Chattogram has been completely stopped. Any disruption at the Maheshkhali LNG terminal results in a severe gas shortage in the region.
When LNG operations began, authorities had assured that Chattogram’s demand would be prioritized, with any surplus LNG supplied to other regions. However, this promise has not been fulfilled.
Over the past 15 years, Chattogram has experienced stagnation in both domestic and foreign investments. KGDCL reports that no significant investments have occurred during this time.
While some industrial entrepreneurs have been able to secure bank loans, many others have failed to obtain the necessary financial support.
Furthermore, disputes over gas connections persist, and despite strong demand, adequate gas allocations have not been provided. As a result, new industrial gas connections remain largely unavailable, and even entrepreneurs who have invested in industries are often unable to secure gas connections.
KGDCL data indicates that in recent years, not only have there been no new industrial connections, but no additional gas loads have been provided to existing factories either.
Of the 601,000 total gas connections under KGDCL in Chattogram, 1,160 serve industries, 205 are for captive power plants, 70 are for CNG filling stations, six are for power plants, and four are for fertilizer factories.
