Bangladesh’s rapid industrial growth has sparked an increasing demand for industrial and medical gases, particularly oxygen and nitrogen. These gases are the unseen lifelines of countless industries—steel, pharmaceuticals, hospitals, food processing, shipbuilding, and electronics. As the nation pushes toward industrial self-reliance, setting up an Oxygen and Nitrogen Gas Plant is not only timely but highly profitable.
Most important, this business serves both life and industry—oxygen sustains patients in hospitals, while nitrogen powers countless industrial operations. Because of that, an oxygen and nitrogen gas plant stands as a resilient, high-demand business in Bangladesh’s growing economy.
Why Invest in an Oxygen and Nitrogen Gas Plant
Bangladesh still imports large volumes of gas cylinders and liquid oxygen. This dependency creates a gap—an opportunity for investors. Establishing a local gas plant means meeting domestic demand faster and at lower costs.
Here are some strong reasons to consider:
- High Demand Year-Round – Hospitals, steel industries, food processors, and shipyards need continuous gas supply.
- Pandemic Lessons – The COVID-19 crisis revealed Bangladesh’s need for more local oxygen sources.
- Low Competition, High Profit Margin – Only a handful of big suppliers exist, leaving space for new entrants.
- Export Possibilities – Neighboring markets like Nepal and Myanmar could be future buyers.
- Government Support – Industrial gas plants fall under “priority manufacturing sectors,” making loans and incentives easier to obtain.
Project Summary
| Particulars | Details |
|---|---|
| Project Name | Oxygen and Nitrogen Gas Plant |
| Proposed Location | Gazipur / Narayanganj / Savar Industrial Zone |
| Land Area | 1 Acre (Approx. 43,560 sq.ft) |
| Production Capacity | Oxygen: 1,000 m³/hr; Nitrogen: 500 m³/hr |
| Project Cost | BDT 250 Million (Approx.) |
| Project Duration | 12–14 Months |
| Employment | 40–50 Persons |
| Power Requirement | 500–800 KW |
| Water Requirement | 1,000 L/day |
| Project Type | Industrial & Medical Gas Production |
| Market | Hospitals, Industries, Laboratories, Steel Mills, Shipyards |
Objectives of the Project
- To establish a high-capacity gas plant capable of producing medical-grade oxygen and industrial nitrogen.
- To ensure a steady local supply of gases to hospitals and industries.
- To reduce foreign import dependence on gas cylinders.
- To generate employment and contribute to Bangladesh’s industrial growth.
Production Process
1. Air Compression
Atmospheric air is drawn into compressors and filtered to remove dust and moisture.
2. Air Purification
The air passes through molecular sieves to remove carbon dioxide and hydrocarbons.
3. Cryogenic Separation
Air is cooled to very low temperatures until it liquefies. Oxygen and nitrogen are separated through distillation.
4. Gas Filling and Storage
The gases are then compressed, stored, and filled into high-pressure cylinders or stored in liquid form in insulated tanks.
5. Distribution
Cylinders are distributed to hospitals, industrial clients, and distributors via delivery trucks or contracts.
List of Machinery and Equipment
| SL | Description | Qty | Approx. Cost (BDT) |
|---|---|---|---|
| 1 | Air Compressor (High Capacity) | 2 | 25,000,000 |
| 2 | Purification Unit (Molecular Sieve) | 1 | 8,000,000 |
| 3 | Cryogenic Distillation Column | 1 | 40,000,000 |
| 4 | Oxygen Compressor | 2 | 10,000,000 |
| 5 | Nitrogen Compressor | 2 | 9,000,000 |
| 6 | Cylinder Filling Manifold System | 1 | 12,000,000 |
| 7 | Liquid Storage Tanks (Cryogenic) | 2 | 15,000,000 |
| 8 | Water Cooling System | 1 | 2,500,000 |
| 9 | Control Panel and Automation System | 1 | 6,000,000 |
| 10 | Laboratory Equipment (Quality Testing) | 1 | 2,000,000 |
| 11 | Cylinder (Oxygen/Nitrogen) | 3,000 pcs | 9,000,000 |
| 12 | Delivery Vehicles (Truck/Van) | 2 | 5,000,000 |
| Total Machinery Cost | 143,500,000 BDT |
Civil Works and Infrastructure
| Item | Details | Estimated Cost (BDT) |
|---|---|---|
| Land Development | Site leveling and fencing | 3,000,000 |
| Factory Building | 12,000 sq.ft RCC structure | 18,000,000 |
| Administrative Office | 3,000 sq.ft | 4,500,000 |
| Cylinder Storage Shed | 4,000 sq.ft | 5,000,000 |
| Laboratory & Utility Section | 2,000 sq.ft | 2,000,000 |
| Boundary Wall and Gate | 2,500,000 | |
| Internal Roads & Drainage | 2,000,000 | |
| Total Civil Cost | 37,000,000 BDT |
Manpower Requirement
| Category | No. of Persons | Monthly Salary (BDT) | Total/Month (BDT) |
|---|---|---|---|
| General Manager | 1 | 150,000 | 150,000 |
| Production Manager | 1 | 120,000 | 120,000 |
| Engineer (Mechanical/Electrical) | 2 | 80,000 | 160,000 |
| Quality Controller | 1 | 60,000 | 60,000 |
| Plant Operators | 5 | 40,000 | 200,000 |
| Technicians | 5 | 35,000 | 175,000 |
| Accounts/Admin Staff | 2 | 35,000 | 70,000 |
| Storekeeper | 1 | 30,000 | 30,000 |
| Security Guards | 3 | 20,000 | 60,000 |
| Drivers | 2 | 25,000 | 50,000 |
| Helpers/Workers | 10 | 18,000 | 180,000 |
| Total (Monthly) | 1,255,000 BDT | ||
| Total (Yearly) | 15,060,000 BDT |
Utility Requirement
| Utility | Consumption | Monthly Cost (BDT) |
|---|---|---|
| Electricity | 800 KW | 1,200,000 |
| Water | 1,000 L/day | 30,000 |
| Gas (Backup System) | 1,000 m³/month | 50,000 |
| Maintenance & Misc. | 100,000 | |
| Total Monthly Cost | 1,380,000 BDT |
Financial Projection
Project Cost Estimate
| Particulars | Amount (BDT) |
|---|---|
| Land & Site Development | 30,000,000 |
| Civil Works | 37,000,000 |
| Machinery & Equipment | 143,500,000 |
| Vehicles | 5,000,000 |
| Furniture & Office Setup | 2,000,000 |
| Pre-Operational Expenses | 3,000,000 |
| Working Capital (6 months) | 30,000,000 |
| Total Project Cost | 250,500,000 BDT |
Sales and Income Projection
| Product | Production Capacity (Per Month) | Selling Price (BDT/m³) | Monthly Revenue (BDT) |
|---|---|---|---|
| Oxygen Gas | 7,20,000 m³ | 25 | 18,000,000 |
| Nitrogen Gas | 3,60,000 m³ | 18 | 6,480,000 |
| Cylinder Rental & Refilling | 5,000 pcs | 400 | 2,000,000 |
| Total Monthly Revenue | 26,480,000 BDT | ||
| Total Yearly Revenue | 317,760,000 BDT |
Operating Expenses
| Item | Annual Cost (BDT) |
|---|---|
| Raw Materials & Power | 16,000,000 |
| Salaries & Wages | 15,060,000 |
| Maintenance | 3,000,000 |
| Transport & Distribution | 4,000,000 |
| Admin & Marketing | 3,000,000 |
| Total Expenses | 41,060,000 BDT |
Profitability Projection
| Year | Sales (BDT) | Operating Cost (BDT) | Gross Profit (BDT) | Net Profit (BDT) |
|---|---|---|---|---|
| 1st Year | 250,000,000 | 180,000,000 | 70,000,000 | 40,000,000 |
| 2nd Year | 290,000,000 | 195,000,000 | 95,000,000 | 55,000,000 |
| 3rd Year | 320,000,000 | 205,000,000 | 115,000,000 | 70,000,000 |
| 4th Year | 350,000,000 | 215,000,000 | 135,000,000 | 85,000,000 |
| 5th Year | 380,000,000 | 225,000,000 | 155,000,000 | 100,000,000 |
Return on Investment (ROI): Approx. 35%
Payback Period: 3 Years
Market Outlook
Bangladesh’s oxygen and nitrogen market is projected to grow at 10–12% annually. Industrialization, especially in steel, food, pharmaceuticals, and shipbuilding sectors, drives this rise.
During the pandemic, hospitals faced severe oxygen shortages. Since then, the government has encouraged domestic production units. Moreover, industries in Gazipur, Narayanganj, Savar, and Chattogram are now demanding nitrogen for cooling, packaging, and welding.
Because the market has fewer large players, new investors can easily capture regional markets through strong distribution networks and supply contracts.
SWOT Analysis
| Strengths | Weaknesses |
|---|---|
| High demand and stable market | High initial investment |
| Essential product for multiple industries | Requires technical expertise |
| Can serve both medical and industrial sectors | Power supply dependency |
| Opportunities | Threats |
|---|---|
| Government incentives and industrial expansion | Market price fluctuation |
| Export potential to neighboring countries | Import of cheaper cylinders |
| Contract supply with hospitals and factories | Technological obsolescence |
Implementation Schedule
| Activity | Duration (Months) |
|---|---|
| Feasibility Study & Project Profile | 1 |
| Land Acquisition & Design | 2 |
| Civil Construction | 4 |
| Machinery Procurement | 3 |
| Installation & Testing | 3 |
| Staff Recruitment & Training | 1 |
| Commercial Production | 1 |
| Total Project Duration | 12–14 Months |
Environmental and Safety Considerations
Oxygen and nitrogen plants operate under high pressure and cryogenic conditions. Therefore, safety and compliance are non-negotiable.
- Regular inspection of pipelines and valves.
- Proper fire safety measures.
- Trained staff for cylinder handling.
- Waste gas venting systems.
- Noise and emission control to protect nearby communities.
Future Expansion Possibilities
The plant can expand into:
- Liquid Medical Oxygen (LMO) supply to hospitals.
- Argon Gas production for welding industries.
- Gas Cylinder Manufacturing Unit to reduce outsourcing.
- Regional Filling Stations for better market coverage.
Because industrial demand in Bangladesh is rising, reinvestment in these expansions can double profits within five years.
Conclusion
An Oxygen and Nitrogen Gas Plant is not just a business—it’s a national necessity. Bangladesh’s healthcare and manufacturing sectors depend heavily on these gases. The market is wide open, the investment is bankable, and the social impact is significant.
Investors, entrepreneurs, and industrialists who step into this field today will shape a vital part of the country’s future infrastructure tomorrow.
Call to Action
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