Intraco resumes CNG supplying after nine months, offering new hope for industrial gas supply
Amid an acute gas shortage in the industrial sector, an alternative fuel supply route for factories outside the pipeline network has reopened to some extent as listed company Intraco Refueling Station PLC has resumed transporting compressed natural gas (CNG) after a nine-month halt.
Following approval from the Department of Explosives, the company’s tube and cascade-cylinder trailers have resumed operations, creating scope to increase gas supplies to industries in Dhaka, Gazipur and surrounding industrial areas.
The resumption comes at a time when declining gas pressure is disrupting production at many factories. However, Intraco’s current supply remains far below demand. As a result, even if the company operates at full capacity, it will not immediately resolve the country’s overall gas crisis.
The crisis has become so severe that the two leading apparel industry bodies—the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA)—have sought permission to collect gas from CNG filling stations through cascade cylinders. In separate letters issued on July 28, the organisations requested temporary permission to collect CNG to keep factories operational during the crisis.
Meanwhile, Prime Minister Tarique Rahman has directed authorities to take quick and effective measures to address the industrial gas crisis. After hearing from industrial entrepreneurs, he called for discussions with all relevant stakeholders within a week to formulate an effective roadmap to resolve the crisis. Another meeting is expected to be held at the Prime Minister’s Office to review progress.
Fleet resumes operations after nine months
Intraco’s gas transportation operations came to a standstill in November last year when the Department of Explosives withdrew most of the company’s gas-carrying vehicles over licensing and safety issues. As a result, the transportation of gas from Bhola gas fields to Dhaka and surrounding industrial areas was virtually suspended.
Approval of the vehicles remained pending for a prolonged period due to the need for safety inspections. The approval process resumed in several phases around the middle of this year. Recently, the Department of Explosives inspected the remaining cascade-cylinder trailers and allowed them to transport gas, creating an opportunity for Intraco to bring its entire fleet back into operation.
According to Department of Explosives Director General Mohammad Mohsin Uddin, the department visited the laboratory of the Chinese manufacturer to assess the capacity of Intraco’s vehicles. A team comprising representatives from the Department of Explosives, Intraco and Bangladesh University of Engineering and Technology (BUET) inspected the manufacturer and the certification agency’s facilities.
The inspection team confirmed that the vehicles were suitable for safely transporting gas. However, changes to existing regulations are required before permanent licences can be issued for the remaining trailers, officials said.
Intraco’s tube and cascade-cylinder trailers were manufactured by China-based Enrich CNG, while their quality was inspected and certified by Hartfast Stream Boiler. As Bangladesh has limited facilities for comprehensive testing of such specialised vehicles, the authorities had to conduct the capacity assessment abroad.
Bhola gas to reach industries
Intraco has a 10-year agreement with state-owned Sundarban Gas Company to supply gas to industries located outside the pipeline network. Under the arrangement, surplus gas from the Bhola gas field is converted into CNG and transported by trailers to industrial areas in Dhaka, Gazipur and Tangail.
Initially, the agreement envisaged transporting 5 million cubic feet (mmcfd) of gas per day, with plans to gradually increase the volume to 25 mmcfd. Before the transportation service was suspended, Intraco was supplying around 3.5 mmcfd daily.
Under the agreement, Intraco purchases surplus gas from Bhola, converts it into CNG and sells it to industrial consumers. The company buys the gas at Tk17.10 per unit and sells it to industries at Tk47.60 per unit.
The supply process is relatively unique. First, Sundarban Gas Company collects surplus gas from the Bhola gas field. Intraco then compresses the gas at high pressure and loads it into cascade-cylinder trailers. The trailers transport the gas by road to industrial areas, where a regulating control unit reduces the pressure from around 1,000 PSI to a level suitable for use in factory boilers and power-generation equipment.
Demand rising amid worsening crisis
While Intraco’s operations were largely suspended for safety reasons, the industrial gas crisis worsened. Many factories in Gazipur, Narayanganj, Savar, Ashulia and areas surrounding the capital are unable to operate at full capacity because of low gas pressure.
Amid the crisis, many factories have been trying to collect gas from CNG filling stations as an alternative. However, Titas Gas recently instructed filling stations to stop selling gas through open cylinders or cascades that are not installed in approved vehicles. The directive cited safety concerns and the risk of violating gas laws and distribution regulations.
Major opportunity, but challenges remain
Rising industrial demand for gas has created a major market opportunity for Intraco. Demand is particularly strong among factories located outside the national gas pipeline network or those receiving insufficient pressure through existing pipelines.
However, the prolonged suspension of operations has put financial pressure on the company. The impact of the gas transportation disruption was reflected in its earnings from the final quarter of 2025. According to financial market data, Intraco’s earnings per share (EPS) fell to Tk0.13 in October-December 2025, compared with Tk0.47 in the same period a year earlier. In January-March this year, the company posted a loss of Tk0.19 per share, compared with a profit of Tk0.35 per share in the corresponding period of the previous year.
Intraco was also moved to the ‘Z’ category on February 16 this year. According to market information, the company was shifted to the category for failing to distribute its approved dividend within the stipulated timeframe.
Therefore, restoring gas transportation fully is not only an opportunity for the company to revive its business but also a major test of its ability to recover financially.
Intraco Company Secretary G M Salahuddin said that although the current gas supply remains low compared with market demand, the company is playing an important role as a gas supplier to industries located outside the national pipeline network.