Four major textile, RMG bodies seek area-based gas rationing

Star Business Report

Four of the country’s textile and garment trade bodies have urged the government to introduce area-based gas rationing promptly to ensure uninterrupted industrial production during the ongoing gas shortage.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA) and Bangladesh Terry Towel & Linen Manufacturers & Exporters Association (BTTLMEA) made the request in a letter sent to the managing director of Gas Transmission Company Limited (GTCL) on September 16.

In the letter, the presidents of the four organisations proposed dividing industrial establishments into separate zones and preparing a rationing roster for each area instead of distributing the available gas uniformly across all industrial zones.

Under the proposed system, gas supply to one industrial area could be restricted for four to five days while other areas receive the required supply. The restrictions could then be rotated among the zones, they said.

They said the roster should take into account factors such as production dependency, type of industry, employment, export contribution and safety.

Such a system would allow the limited gas supply to be distributed based on need and economic importance rather than proportional allocation, while ensuring the gas required for industrial production, they said.

The trade bodies also urged the government to promptly reallocate excess gas available in other distribution areas, beyond their proportional allocation, to the Titas Gas area.

The necessary gas supply and pressure should be ensured in the Titas area, the letter said, adding that an area-based rationing programme should be introduced promptly to maximise the use of available gas.

Around 90 percent of industries are located within the Titas Gas distribution area. However, inadequate gas supply has prevented Titas from meeting industries’ requirements.

Gas is supplied to different areas through various distribution companies under the country’s national gas supply system.

The trade bodies said comparative data on approved load, gas allocation and actual receipt in the industrial and captive sectors showed a particularly significant concentration of demand in the Titas Gas area.

Titas Gas accounts for about 75.88 percent of the total approved load for the captive-gas sector, while the other five distribution companies account for the remaining 24.12 percent.

Against this backdrop, the actual need for additional gas in other distribution areas beyond their proportional allocation should be assessed, with any excess reallocated to the Titas Gas area at the earliest possible time, the trade bodies said.

They added that the gas required for efficient industrial operations in the Titas area should be determined by considering approved load, actual industrial demand, employment, production and export contribution.