BGMEA, BKMEA seek CNG to run factories amid gas crisis

Highlights:

• Garment exporters seek temporary CNG access to keep factories running amid gas shortage
• BGMEA, BKMEA urge gas cylinder supply until shortages ease
• Titas banned CNG sales into open cylinders over safety, legal concerns
• BGMEA warns zero gas pressure is halting production in many factories
• Export shipments risk delays as factories struggle with irregular gas supply

The country's two leading apparel trade bodies have urged the government to allow export-oriented garment factories to collect compressed natural gas (CNG) from filling stations to keep production running, as industries struggle with an acute gas shortage following the shutdown of the Excelerate Energy-operated floating LNG terminal.

In separate letters sent yesterday (28 July), the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) appealed to the government to permit factories to procure gas through cylinders from CNG filling stations until the supply situation improves.

The requests came after Titas Gas Transmission and Distribution Company instructed CNG filling stations to stop selling natural gas into open cylinders or gas cascade cylinders not mounted on authorised vehicles, citing safety concerns and violations of the Gas Act 2010 and Gas Distribution Rules 2026.

According to a Titas letter dated 27 July, addressed to operators of CNG filling stations, the utility warned that supplying natural gas to unauthorised open cylinders or gas cascade cylinders outside approved vehicles is illegal and highly risky.

It asked station operators to immediately stop such sales and sought their cooperation in implementing the government decision to avoid the risk of gas disconnections.

BGMEA warns of export disruption

In a letter addressed to the president of the Bangladesh CNG Filling Station and Conversion Workshop Owners Association, BGMEA President Mahmud Hasan Khan said the country's ready-made garment industry has become the main driving force of the economy, earning the largest share of export income, creating employment for millions of people—particularly women—and contributing significantly to foreign exchange earnings.

He said the closure of one of the two floating LNG terminals at Moheshkhali has created a severe gas crisis, reducing gas pressure in factories and disrupting production because of irregular gas supply.

According to the letter, gas pressure in many industrial units has fallen to zero PSI, making it impossible to continue production or meet shipment schedules required by international buyers.

BGMEA requested that factories willing to collect gas through cylinders from CNG stations be facilitated so they can maintain production and fulfil export commitments.

However, it noted that filling stations have become reluctant to supply gas in cylinders following the Titas directive.

The association urged the CNG station owners' body to take necessary initiatives so export-oriented garment factories can temporarily receive gas through cylinders in the greater national interest.

BKMEA says ministry agreed to continue gas supply

In a separate circular to its member factories, BKMEA said its President discussed the matter with the secretary of the Energy and Mineral Resources Division after learning about the Titas directive.

According to BKMEA, the president informed the ministry that any disruption to gas supply for export-oriented industries would severely affect industrial production.

The association said the energy secretary immediately instructed the Titas managing director to ensure that gas collection from CNG filling stations for export-oriented factories continues as before.

BKMEA advised its member factories to comply with all safety requirements and government instructions while collecting gas from CNG stations.

The association also said factories may operate their LMG (Liquefied/Local Mobile Gas) systems at full capacity to ensure uninterrupted production.

BKMEA further informed members that it expects the current gas supply crisis to continue until 8 August 2026, after which the situation is expected to return to normal.

It added that the association remains in constant communication with the relevant authorities and will keep members informed of any further developments.

The appeal comes as Bangladesh faces one of its worst gas shortages in recent years after a fire at the Excelerate Energy-operated FSRU in Moheshkhali damaged critical cables, taking around 450-500 million cubic feet per day (mmcfd) of gas supply out of the national grid.

The disruption has affected households, industries, CNG stations and gas-fired power plants, while the government has fast-tracked the import of replacement spare parts to restore the terminal.