Gas crisis still choking textile mills

Textile and garment industry owners yesterday expressed grave concerns over the inadequate supply of gas to industrial units, which has been severely hampering their operations for almost three years.

Many textile mills are on the verge of shutting down as they are unable to operate even at minimum capacity, said Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA).

He was speaking at a joint press conference of different trade bodies at the Gulshan Club in Dhaka.

"We need a roadmap for gas supply as we cannot run our mills," he added, insisting that the government focus on increasing energy supply to industrial units in the budget for the next fiscal year.

The textile millers lobbied the previous government against increasing gas prices, but the rate was increased regardless.

He also urged the government to engage Chinese investors to supply gas from Bhola to Dhaka and adjacent areas, arguing that they could get the job done quickly.

Although the government is inviting foreign investors, he believes that foreign investment will not come since even local investors are struggling to survive.

Many businessmen are seeking exit plans as they are suffering and cannot find ways to survive, Russell lamented, adding that most mills are running at 50 percent of their capacity due to the crippling gas crisis.

Russell also said he met the energy adviser yesterday but did not get any response about improving gas supply.

Many have no choice but to run their mills by purchasing diesel, which increases costs fourfold. The energy adviser said that he prefers diesel imports rather than liquefied natural gas (LNG) since customers clear the dues promptly.

Russell also said many are not getting gas from supplying companies although they have paid large amounts in deposits.

"We need support at this moment. We have passed through the Covid-19 pandemic and a mass uprising, and we have been facing a gas crisis and banking crisis. We need support. It would not be right to choke us," he said.

Anwar-Ul-Alam Chowdhury (Parvez), president of the Bangladesh Chamber of Industries (BCI), said a lot of seminars have been held about the energy crisis, but there can be no remedy without increasing the prices.

The government is failing in its commitment to supply gas, but businessmen are sent to jail if they cannot comply with their commitments, he said. Due to the government's failure to supply gas, mills cannot operate at full capacity.

He also said the Chattogram Port is not functioning now because of the protests being staged by National Board of Revenue officials.

Hossain Mehmood, chairman of the Bangladesh Terry Towel & Linen Manufacturers & Exporters Association (BTTLMEA), said five to six terry towel mills have already closed down because of the gas crisis.

Home textile mills are also facing closure.

BTMA Director Razeeb Haider said the current gas crisis is a planning failure, which is nothing new.

For instance, last year, the government imported 82 cargoes of LNG totalling 11.83 mmcfd, which is inadequate.

Drilling for gas should be increased, particularly in the offshore areas, he recommended.

BTMA Director Khorshed Alam alleged that Titas Gas Transmission and Distribution Company has been harassing textile millers and failing to supply adequate gas.

M Shahadat Hossain Sohel, a former BTTLMEA chairman, urged the government to stop corruption in gas supply.

He suggested the government build two more LNG terminals and double LNG imports from the 82 cargoes last year to improve supply immediately.

Md Saleudh Zaman Khan, vice-president of the BTMA, said the gas crisis in the Bhulta area is so acute that the pressure is 1 PSI. His own mill cannot be operated fully, but he must still pay Tk 15 crore in salaries and Tk 10 crore in gas bills each month.

If the gas crisis is not resolved by June, it will not be possible to run the mills after Eid-ul-Azha, he said.

Abdullah Al Mamun, another BTMA director, said millers are fighting like warriors to stay alive. If the mills cannot be run, the country will face difficulties, he added.

Zakir Hossain Noyon, general body member of the Federation of Bangladesh Chambers of Commerce and Industry, said local entrepreneurs were emboldened to invest in industries about 20 years ago, when it was said that the country was floating on gas.

But now the situation has turned severe, and the time has come to adopt alternative energy sources such as small modular reactors.