Safety fears keep Intraco's industrial gas supply suspended for 6 months

Gas supply to industrial belts in Dhaka and Gazipur by Intraco Refueling Station has remained almost suspended for more than six months due to safety concerns.

The listed company had been delivering gas sourced from state-owned Sundarban Gas Company in Bhola in the form of compressed natural gas (CNG), using 38 heavy-duty cascade cylinder trailers - commonly known as tube trucks - until last November, when vehicle certification emerged as a prerequisite for safety clearance.

Most of the tube trucks had no licence from the Department of Explosives and were therefore withdrawn from carrying gas in the interest of public safety and protection of property. Of the 38 trucks, only three are now transporting gas to the industrial belts.

Mohammad Mohshin Uddin, director general of the Department of Explosives, explained the risks associated with the vehicles. In a densely populated country like Bangladesh, carrying compressed gas through heavy traffic of unruly vehicles poses a risk of collision and explosion.

He said his department was working to bring Intraco's gas transportation operations under safety compliance through certification of the trucks. Local experts from the Bangladesh University of Engineering and Technology (BUET) would issue the clearance certificates.

"Intraco is working with us to restore gas transportation upon receipt of clearance for its vehicles."

Intraco's tube trucks, manufactured in China, should be eligible for gas transportation, but they must demonstrate safety under Bangladesh's road conditions and traffic management system.

"Safety is the first priority for us. That's why we need to test the viability of Intraco's tube trucks before allowing the transportation of compressed gas," added Mr Uddin.

Against this backdrop, an agreement is set to be signed soon among the Department of Explosives, experts from the mechanical engineering department of BUET and Intraco.

Under the agreement, Intraco would import testing equipment, and the testing and certification of the vehicles would be carried out under the direct supervision of BUET experts.

Intraco company secretary G M Salahuddin said they were working with the Department of Explosives for a quick resolution of the problem. The company would need an investment of Tk 100 million to set up truck testing facilities at its own plant in Bhola.

"The investment will help continue our business of gas transportation, as tube trucks should be tested every five years," he said, adding that once the infrastructure is ready, other companies will also be able to avail testing services from Intraco.

On the gas supply disruption, the company secretary said many industries require high-pressure gas supply whereas pipeline gas comes at low pressure.

Asked why the company had continued supplying gas without licences issued against the vehicles, Mr Salahuddin said they had been deploying properly equipped trucks in phases while simultaneously applying to the Department of Explosives for licences.

Initially, three trucks were licensed after Intraco signed a contract with the government for gas transportation in May 2023. Later, the authority slowed down the issuance of licences, citing the need for further scrutiny.

In the absence of a pipeline network, Intraco began supplying gas to industries in Dhaka and adjoining areas - including Gazipur and Tangail - under a 10-year contract signed with state-owned Sundarban Gas Company. Under the contract, the company was required to transport 5 MMCFD (million cubic feet per day) initially, scaling up to 25 MMCFD. Company officials said they were transporting 3.5 MMCFD to the industrial belts until last November. Intraco sold CNG at Tk 47.60 per unit against a purchase price of Tk 17.10 per unit.

The gas supply involves a step-by-step process of extraction, compression and decompression. Sundarban Gas Company extracts surplus gas from Bhola's gas fields, after which Intraco compresses it and loads it into heavy-duty cascade cylinder trailers.

After transporting the gas from Bhola to the industrial belts, a Regulating Control Unit (RCU) decompresses it from 1,000 psi (pounds per square inch) down to usable operational levels of 15 psi for industrial boilers and power generators.

As the tube trucks came under scrutiny in November last year, gas transportation by Intraco declined sharply, weighing on its financial performance.

The company's earnings per share fell to Tk 0.13 in October-December last year from Tk 0.47 in the same period of the previous year. The situation worsened further in January-March this year, with Intraco posting a loss of Tk 0.19 per share against a profit of Tk 0.35 per share in the same period of 2025.

Meanwhile, the company's stock was placed in the 'Z' category on the bourses in February.

When will gas supply be restored?

Asked about the likely timeframe for resolving the problem, the Intraco company secretary said a delegation comprising BUET experts and representatives from the line ministry, the Department of Explosives and Intraco would visit truck manufacturing and certification companies in China this month.

The cascade cylinder trailers used by Intraco were manufactured by China-based Enrich CNG and certified by Hartfast Stream Boiler, which has offices in China.

The delegation would verify during the visit whether the certificates issued by the manufacturer are genuine.

They would then pursue an interim solution, "allowing the transportation of gas by our trucks." At the same time, the company will set up its own infrastructure for testing, added Mr Salahuddin.

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