Govt signs revised gas deal with KAFCO

The government on Wednesday signed a revised gas sales and payment agreement with Karnaphuli Fertilizer Company Limited (KAFCO) and realised outstanding gas bills worth Tk 9.24 billion from the multinational company.

In addition, KAFCO paid an overdue demand charge of around Tk 343 million to state-run Karnaphuli Gas Distribution Company Ltd (KGDCL) during the signing ceremony held at the Petrobangla office in Dhaka.

Energy Secretary Mohammad Saiful Islam presided over the ceremony, which was also attended by Industries Secretary Md Wabaidur Rahman, KGDCL Chairman SM Moin Uddin Ahmed, Petrobangla Chairman Md Rezanur Rahman, and Bangladesh Chemical Industries Corporation Chairman Md Fazlur Rahman.

The agreement was signed by KGDCL Secretary Kabir Uddin Ahmed and KAFCO Secretary Khaza Saqidur Rahman on behalf of their respective organisations.

At the same event, KGDCL also cleared its outstanding payment of Tk 6.34 billion to Petrobangla.

Under the revised deal, KGDCL -- a wholly owned subsidiary of Petrobangla -- will supply around 55 million cubic feet per day (mmcfd) of natural gas to KAFCO, aiming to ensure uninterrupted fertiliser production and boost national food output.

KAFCO typically sells fertiliser to the state-owned BCIC.

According to the agreement, the revised gas price has been set at Tk 30 per cubic metre, provided the sale price of urea fertiliser to BCIC is US$260 per tonne or higher.

azizjst@yahoo.com