Bangladesh’s decision to suspend new industrial gas connections until the country’s energy supply improves has left entrepreneurs facing uncertainty, with 1,857 applications for gas connections pending at six distribution companies.

The Ministry of Power, Energy and Mineral Resources informed Petrobangla on July 14 that new gas connections for industries and load increases for existing factories would remain suspended until the gas shortage is resolved.

According to Petrobangla, around 550 industrial units have already completed all formalities and paid connection fees but are still waiting for gas supply.

The policy has affected several major investment projects. Companies that have completed factory construction are unable to begin production, while others have delayed expansion plans because of the lack of gas. Many businesses continue to repay bank loans despite keeping factories idle.

Among them is TK Group, which invested nearly Tk 10 billion in Karnaphuli Steel Mills in Chattogram and installed a 12-megawatt captive power plant. However, without gas, the factory has been forced to rely on the national power grid, where power outages have disrupted production.

“Our request to the government is to resolve the gas crisis quickly. Otherwise, industries will face serious difficulties,” said Mohammad Mostafa Haider, a director of TK Group.

Business leaders warned that the suspension could discourage both domestic and foreign investment, contradicting the government’s efforts to attract new industries. The government has pledged to transform Bangladesh into a $1 trillion economy by 2034 and recently urged investors to expand their operations in the country.

The banking sector has also raised concerns. Ahsan Zaman Chowdhury, Managing Director of Trust Bank, said many factories have switched to LPG or LNG due to the gas shortage, pushing production costs up by as much as three times and making it difficult for borrowers to repay loans.

Several large industrial groups are waiting for gas supply. Meghna Group of Industries (MGI) has invested Tk 7,320 crore in two factories in the Cumilla Economic Zone, but both remain idle because of the lack of gas. The company is reportedly paying about Tk 45 crore in monthly loan interest.

Similarly, City Group has invested around Tk 14,000 crore in five factories in its economic zone in Munshiganj, but the projects have yet to begin operations despite the company financing its own gas pipeline.

Power, Energy and Mineral Resources Adviser Iqbal Hasan Mahmud said the previous government approved industrial projects without ensuring adequate gas supply. He said the government is increasing domestic gas production, expanding LNG imports, and considering a new LNG terminal. New industrial gas connections will resume once supply improves.

Energy experts, however, called for a long-term solution. Khandaker Golam Moazzem, Research Director at the Centre for Policy Dialogue (CPD), urged the government to accelerate domestic gas exploration, connect Bhola and Barishal gas fields to the national grid, and reduce reliance on imported LNG to ensure sustainable energy supplies for the industrial sector.