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The government has inked a revised gas sales and payment agreement with Karnaphuli Fertilizer Company Limited (Kafco) and collected outstanding gas bills worth Tk 9.24 billion from the multinational company on Wednesday.
Kafco also paid overdue demand charge worth around Tk 343 million to state-run Karnaphuli Gas Distribution Company Ltd (KGDCL) during a deal signing ceremony in Petrobangla office in the city.
Energy secretary Mohammad Saiful Islam chaired the deal signing ceremony, which was attended, among others, by industries secretary Md Wabaidur Rahman, KGDCL chairman SM Moin Uddin Ahmed, Petrobangla chairman Md Rezanur Rahman, and BCIC chairman Md Fazlur Rahman.
The KGDCL company secretary Kabir Uddin Ahmed and Kafco company secretary Khaza Saqidur Rahman inked the deal from their respective sides respectively.
During the ceremony, the KGDCL also cleared outstanding payment worth Tk 6.34 billion to Petrobangla.
Under the deal, the KGDCL, a wholly owned subsidiary company of Petrobangla, will supply around 55 million cubic feet per day (mmcfd) of natural gas to Kafco to ensure smooth fertilizer production, which will ramp up food output across the country.
Kafco usually sells fertilizer to the state-owned Bangladesh Chemical Industries Corporation (BCIC).
As per the agreement, the revised gas price has been fixed at Tk 30 per cubic meter, if the sale price of urea fertilizer to the BCIC is US$260 per tonne and above.