Industry first in gas supply to fuel economic growth

Industrial consumers will get top priority in gas supply as the government prepares such a fuel-feeding recipe aimed at fuelling economic growth, now largely subdued following political upheavals, sources say.

"Industry will be on top of our priority and we want that the industrial consumers will get as much gas as possible next year to run their industries," state-run Petrobangla Chairman Md Rezanur Rahman told The Financial Express Saturday.

As part of this plan, Petrobangla will be importing increased volumes of liquefied natural gas (LNG) from global suppliers next year," he said.

In 2026--the year close by now-the government corporation will import some 115 LNG cargoes, 5.50-percent higher than current year's imports.

Petrobangla now imports some 109 LNG cargoes from the international market under its set arrangements, he mentions.

"We don't want industrial output be hindered due to natural gas crisis," he says, adding that Petrobangla will utilise  current year's experience in the coming year to ensure sufficient  natural gas supplies to industries.

"We have month-wise data over demand for natural gas and supply to industries."

Currently, he says, they are providing natural gas to industries to the extreme level of their capacity.

Fertiliser factories are also getting increased volumes of gas, says Mr Rahman.

In the coming year, industrial consumers will get sufficient more gas even when the demand for natural gas for other consumers will increase, he assures.

In the current year, natural gas supply to industries increased by 21 per cent during the first four months until April 2025 compared to the same period of the previous year, 2024, according to official data of the Ministry of Power, Energy and Mineral Resources (MPEMR).

Average gas supply to industries during the first four months until April this year was 997 million cubic feet per day (mmcfd), compared to 823 mmcfd during the same period of the previous year, MPEMR data showed.

Petrobangla has raised gas supply to industries by around 150 million cubic feet per day (mmcfd) since late May following a government decision to import six additional LNG cargos.

The agency reduced gas allocations for gas-fired power plants to 1,050mmcfd from existing 1,200mmcfd to ramp up the fuel feeding to industries by 150mmcfd.

Some 100 mmcfd of additional gas was supplied to industries from additional LNG imports and some 150 mmcfd of gas was diverted to industries to ensure around 250mmcfd additional gas in total for industries from June to October before the advent of winter, said a senior MPEMR official.

The government is spending an additional Tk 110 billion to ensure enhanced gas supply to the industry this year.

"The government will have to count subsidy worth around Tk 35 per cubic meter for importing the additional LNG cargoes for industries," the official adds.

Sources have said that currently the government is providing new gas connections as an unofficial moratorium in previous years amid gas crisis is lifted. Rampant illegal gas connections across the country during the previous Awami League government over the past 16 years had led to the ceasing of new gas connections to industries 'unofficially,' industry insiders say.

"A strong syndicate led by the previous government high-ups, local public representatives, top officials of gas-marketing and -distribution companies and contractors provided scores of illegal connections depriving new industries where the necessity of such connections was vital," says one of the sources.

Currently, new piped gas connections to CNG (compressed natural gas)-filling stations, households and commercial consumers are stopped.

The commercial consumers include restaurants, residential hotels and guest houses, private hospitals, clinics, laboratories, educational institutions, community centres, community clubs, convention centres, snack -and bakery-item makers.

Traditional glass, chocolate, 'chanachur', vermicelli, biscuit, soap, ceramic, medicine, colour, 'agor-ator' distilled water, tannery, ice and ice-cream, and salt makers, who use hand-operated tools to manufacture their products, also belong to the commercial-consumer group.

New gas connections to hospitals, educational institutions and jails, however, continued.

New gas connections to captive power plants are discouraged, considering the increase in the country's overall electricity generation.

Country's overall natural-gas scarcity prompted Petrobangla to ration new connections to industries, fertiliser factories and power plants since June 2009.

Azizjst@yahoo.com