The government has made a maiden move to fix the value of the natural gas, at Tk 25 per mcf (1,000 cubic feet), pending a decision on across-the-board raise in the fuel tariffs.
So far, this particular national wealth has been zero-rated, without appraising the worth of this fossil fuel, like other assets, said officials while explaining the logic that prompts the move.
The country did never calculate any asset value of the natural gas before.
State-owned Petrobangla didn't either fix any price of natural gas in its share under the production-sharing contracts (PSC) with the operating international oil companies, Petrobangla Director for Finance Mahbubun Nahar told the FE Friday.
In a significant concomitant development, all the seven state-owned gas-marketing and-distribution companies have submitted proposals to the energy regulator to raise natural gas tariffs for all types of consumers--up to 122 per cent-following the fixing of its asset value by the government.
The plea for gas-price hike comes after five years of moratorium.
Bangladesh Energy Regulatory Commission (BERC) has accepted all the proposals. The commission will start on February 2 (Monday) a four-day public hearing on the proposed hike in gas tariffs as well as wheeling charge for the transmission companies.
State-owned Petrobangla earlier had placed pleas several times for raising the natural gas tariffs for the domestic consumers after the previous hike in 2009.
But, the BERC had said no and asked them to fix an asset value of the natural gas, ex-Chairman of Petrobangla Dr Hussain Monsur, who was in office then, told the FE.
Although the marketing and distribution companies submitted tariff-hike proposals separately to the BERC, their proposed rates of raise are identical.
However, the regulator has arranged public hearings separately on their proposals.
A senior Petrobangla official quoted the companies to have justified the latest move on upward gas-price readjustment by saying: the hike is necessary for carrying out oil-and-gas exploration and other necessary development works in the energy sector.
When contacted, Professor M Tamim of Bangladesh University of Engineering and Technology (BUET) supported the government decision on first-ever fixing of asset value of natural gas.
"It would have been better if a higher price could be fixed," he said, arguing that Tk 25 per mcf is a 'poor asset value' of the country's natural gas, which has been the prime source of energy and engine of the country's growth over the past several decades.
The country's overall natural gas production now hovers around 2,470 million cubic feet per day (mmcfd) against the demand for over 3,000 mmcfd.
The demand for the fuel has been on a rapid rise.
Gas shortages have compelled the Petrobangla to ration supply to industries, power plants and fertiliser factories.
azizjst@yahoo.com
