BERC smells rat in gas sales deal with Lafarge

The country's energy regulator has instructed the state-run Jalalabad Gas Transmission and Distribution Systems Ltd (JGTDSL) to submit a copy of its gas sales agreement with Lafarge Surma Cement Ltd, a multinational company (MNC), smelling rat in the deal.
"Please submit us a copy of the gas deal with Lafarge within the next few days," Bangladesh Energy Regulatory Commission (BERC) Chairman A R Khan asked the JGTDSL top officials during a public hearing on gas tariff hike on Thursday.
During the hearing different stakeholders accused the government of inking the deal giving 'undue' benefit to the MNC.
Lafarge is providing US$ 2.8 per Mcf (1,000) in maximum to JGTDSL under the deal, which is much less than international prices, said Professor Nurul Islam of Bangladesh University of Engineering and Technology (BUET).
The price was fixed when each 50-kg sack of cement was being sold at around Tk 200 in local market. Currently the cement price has increased to around Tk 450 per sack, but the gas price remained the same, he added.
He termed gas sales to the MNCs as 'de-facto export' of natural gas. "It can't happen," he opined.
Energy Adviser of Consumers' Association of Bangladesh (CAB) Dr M Shamsul Alam also sought transparency in gas sales agreements with the MNCs.
BERC should fix natural gas tariff for the MNCs operating in the country like that of the local companies, he added.
    azizjst@yahoo.com