Rearranging Industry-Wise Gas Supply Priority

Industries, particularly export-oriented ones, in Bangladesh continued to suffer from the adverse impact of poor gas supply for the last few years.

- Saleque Sufi

Many small and medium-sized industries have been forced to close their business, and many major industries have become sick. After hectic parleys of the industry leaders, the interim government has announced its plan to increase gas supply to industries. However, given the depletion of domestic gas production and the absence of required infrastructure for increasing LNG imports over the near term, it is unlikely that Petrobangla can ensure a sustainable supply of additional gas to industries with a major adjustment to gas supply to other end users.

A gas-supply shortage of 1200-1500 MMCFD and transmission and distribution system constraints would continue to impede gas supply security over the short and medium terms. Power generation and operation of industries would continue to suffer till new gas is added through a massive exploration campaign, and the required import infrastructure starts commercial operation. From the present and planned initiatives, these may not happen before 2030. Till then, Petrobangla has no alternative but to cut corners to manage the present and emerging gas demand. There is hardly any possibility of improving gas supply to any end user, be it power or industry, without rationing the gas supply of other consumers. The planned initiative for improving gas supply to industries is feared not to be reliable and sustainable in the present circumstances unless the government decides to phase out gas supply to less value-added sectors like domestic and commercial consumers.