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Severe gas crisis forces textile mills to operate at 30%-40% capacity

BTJ Desk Report

Since the gas shortage began in March earlier this year, textile mills have been operating at only 30%-40% of their total production capacity, according to the association of textile millers.A

t least 60% factories out of 1,700 member factories of the Bangladesh Textile Mills Association (BTMA) were in a vulnerable position because of the severe gas crisis, they said at a press briefing on Saturday.

Moreover, the mills located around Dhaka, in Narayanganj, Araihazar, Madhabdi, Ashulia, Savar, Gazipur, Sreepur, Bhaluka region, as well as Chittagong and Comilla, were facing an average of 12-hour shutdowns due to gas shortage as they were operating through captive power generation.

BTMA President Mohammad Ali Khokon said textile millers demanded uninterrupted supply of gas to keep their production running.

“We are even ready to pay partially higher rates from the current price of gas if the government can supply uninterrupted power to the industrial units by at least 3,000 mmcfd a day,” he added.

If the government will import 200 MMcfd gas from spot market by $25/mmbtu, and import 500 mmcfd by agreement price $15 mmbtu, average per m3 gas price (including domestic supply) reach Tk22.83, and they are ready to pay it.


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