Practical initiatives for gas extraction essential

We have already learned from media reports that due to the gas crisis, many old factories have shut down or are on the verge of shutting down. News reports on Thursday (July 3) said that many new factories are unable to begin operations due to not being provided with gas connections. According to a media report, Lantabur Group has set up a yarn factory at Trishal in Mymensingh at a cost of Tk 700 crore. The construction was completed six months ago. However, the factory has not yet been able to start operation due to the lack of a gas connection, even though they received a gas demand note in November 2022.

There are more examples of factories unable to start production due to lack of gas connections. According to Petrobangla and related sources, over 1,000 applications for industrial connections are pending with six gas distribution companies, including Titas. Among these, more than 400 customers have completed all procedures and are awaiting promised connections. That means they have also deposited the required fees for the gas connections. The remaining 600 factories have applied but have not yet received any promises. The over 400 customers who have completed all procedures and are awaiting promised connections include some new factories, some expanded factories, and others requesting load increases (in supply volume).

The reason for waiting month after month after paying for gas connections is that the distribution companies are unable to supply gas to the factories. The previous government did not focus on gas extraction within the country but instead relied on imports. Around 2022, as the foreign currency reserves began to decline, importing gas became difficult. Prices in the global market also increased significantly. The Awami League government had accumulated large debts in the energy sector, which the interim government is now repaying. The new government has focused on domestic gas extraction; however, the crisis has not yet been resolved. Altogether, while existing factories are in crisis, it is not possible to provide new connections upon request either. As a result, the industrial sector is suffering.

The only way to increase gas supply is to increase gas extraction. Although there is talk of increased extraction, in reality it is a complex task. Organisations involved in gas extraction say that Bangladesh has experience drilling at most two to three wells per year. It is not possible to drill many wells in a short time just because it is desired. Therefore, the target for 2025 is unlikely to be met.

Concerned individuals also state that it takes over a year just to approve a Development Project Proposal (DPP) for well drilling. Afterwards, it takes several months to acquire land and purchase equipment. Once drilling begins, it takes at least three and a half months to complete an exploratory or development well. And a workover well takes two months. Officials say many things can be said and planned, but implementation is difficult. If multiple foreign companies could be made to work simultaneously, it would be possible to drill more wells.

We understand that gas extraction is practically a difficult matter. Even so, if the gas supply cannot be increased, the prepared factories cannot be brought into operation, and many operating factories will shut down. This will have a negative impact on the overall economic sector.

In this context, it can be said that initiatives could be taken to start extraction from the newly discovered gas fields that are yet to be tapped. Moreover, deeper exploration could be carried out in mines and wells that have been shut down. Additionally, reducing theft and wastage in the gas sector can increase revenue. The quicker this can be done, the better it will be for the country. It will significantly ease the inflationary pressure on the economy. And if this is not done, the country will repeatedly have to seek help from institutions like the IMF, which will in no way be beneficial. Therefore, it is essential to take realistic initiatives considering the economic situation.