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Intraco to supply gas to Dhaka factories

FE REPORT | May 22, 2023 00:00:00

Intraco Re-fuelling Station on Sunday inked a deal with the state-run Sundarban Gas Company Ltd to supply gas from Bhola to gas-starved industries in Dhaka and its adjacent areas.

The deal was signed at a city hotel on Sunday.

According to the deal, Intraco will compress natural gas and transport it to the consumers' end through cascade cylinders in trucks.

This is the first such agreement in the country to compress state's natural gas and supply it to users' ends with the help of private sector.

Initially, Intraco will supply around 5.0 million cubic feet per day (mmcfd) of gas to the gas-starved factories especially in Gazipur and its adjoining areas, where piped gas pressure remains low. Later, the company will be able to increase its gas supply up to 25 mmcfd under the deal for 10 years' tenure.

Consumers will have to buy Intraco gas at government fixed rate at Tk 47.60 per Mcf (1,000 cubic feet).

Under the deal, Intraco Re-fuelling Station will have a margin of around Tk 30.50 per Mcf against its sale of gas in CNG form as it will get Bhola gas from the government at Tk 17 per Mcf.

Intraco will have the authority to select consumers from the state-run Titas Gas Transmission and Distribution Company Ltd's franchise areas separately for gas supply in CNG form and collect bills.

Speaking on the occasion as the chief guest, Adviser to the Prime Minister for Power, Energy and Mineral Resources Dr Tawfiq-e-Elahi Chowdhury, said, "Bhola's gas in CNG form could be supplied wherever there is crisis of piped gas."

"It will increase the country's overall gas output and help solve the crisis," he added.

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