Dhaka, Oct 28 (V7N)- The government is considering the reintroduction of gas connections for industries to ensure an uninterrupted supply that supports industrial operations. However, the moratorium on household gas connections is likely to remain, according to official sources.

Currently, about 46,000 household gas connection requests are pending with Titas Gas Transmission and Distribution PLC, a state-run entity under Petrobangla, while applications for industrial and captive power connections stand at 368. Household gas connections were first halted in 2010, briefly resumed in 2013, but were suspended again in early 2014, with no new connections issued since.

In 2020, the Energy and Mineral Resources Division issued a directive halting new gas connections for industries outside designated economic zones and industrial parks from April 2021. Petrobangla chairman Zanedra Nath Sarker recently stated that Petrobangla has expressed favorable views on restoring industrial gas connections, though the Energy Ministry holds the final decision-making power.

"Industries are prioritized due to their economic impact," Sarker noted, but declined to comment on household connections, pointing out the ministry’s stance against resuming such services. He referenced remarks from the energy adviser affirming that household gas connections are not expected to restart soon.

Petrobangla director (Operations & Mines), M Eng Md Kamruzzaman Khan, highlighted a significant shortfall in supply, with Petrobangla producing around 3,100 MMCFD against a demand of approximately 4,000 MMCFD, hampering new gas connections. To counteract this, the government promotes liquefied petroleum gas (LPG), which has become a $1 billion market in Bangladesh, servicing both urban and rural consumers and providing a cleaner cooking fuel alternative. The LPG sector currently imports about 1.5 million metric tonnes annually, a figure projected to double by 2030.

To date, 58 companies hold licenses to operate in the LPG market, with 28 active. In 2022, the government collected Tk 650 crore in VAT and Tk 200 crore in income tax from this sector. With a growing investment in LPG and its widespread adoption, the government is cautious about introducing new piped-gas connections, fearing market disruption and logistical challenges.

Instead, authorities are focusing on curbing illegal gas connections through various measures. Currently, Bangladesh operates 29 gas fields, with approximately 22 in active production.

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