Energy ministry seeks Tk 12b to foot gas bills of IOCs
Thursday, 16 August 2007
FE Report
The energy ministry has recently sought Tk 12 billion (1200 crore) from the finance ministry to foot the bills owed by Petrobangla against gas purchases from the international oil companies (IOCs)
The state-owned oil and gas company Petrobangla requested the energy ministry to the effect that it was facing fund constraints to pay the gas bills of IOCs operating different gas fields.
While talking to the FE, Energy Secretary ANM Nasiruddin said: "Following the fund crisis of the state-owned Petrobangla, we have recently sought the financial help from the finance ministry to salvage the state-owned entity."
The Petrobangla has been purchasing gas from the IOCs at a higher rate than the selling price, which is the main reason of accumulation of financial losses.
The energy ministry Tuesday held an inter-ministerial meeting on re-fixation of gas prices to resolve financial crisis of the Petrobangla.
Asked about the decision on re-fixation of gas and oil prices, energy adviser said: "The government is not thinking about increasing the gas prices considering the devastating flood, that already affected the economy badly."
The government has dropped its plan to increase the gas price, he said.
The Petrobangla has been incurring a monthly loss of around Tk 800 million for purchasing gas at a higher rate from the IOCs.
The state-owned entity has been purchasing gas worth Tk 2.10 billion a month from the IOCs, which it sells for Tk 1.30 billion.
Petrobangla currently supplies around 1,660mmcfd gas to the national grid, of which it procures around 714mmcfd from the IOCs and rest from its subsidiaries.
It purchases gas from its subsidiary companies at Tk 7.0 per 1,000 cubic feet, or one unit, and for around Tk 192 from IOCs. Its average selling price is around Tk 94.
The division has prepared a proposal for raising the gas prices for domestic and bulk users as well as the compressed natural gas (CNG) price and already placed it before the council of advisers.
The energy ministry has recently sought Tk 12 billion (1200 crore) from the finance ministry to foot the bills owed by Petrobangla against gas purchases from the international oil companies (IOCs)
The state-owned oil and gas company Petrobangla requested the energy ministry to the effect that it was facing fund constraints to pay the gas bills of IOCs operating different gas fields.
While talking to the FE, Energy Secretary ANM Nasiruddin said: "Following the fund crisis of the state-owned Petrobangla, we have recently sought the financial help from the finance ministry to salvage the state-owned entity."
The Petrobangla has been purchasing gas from the IOCs at a higher rate than the selling price, which is the main reason of accumulation of financial losses.
The energy ministry Tuesday held an inter-ministerial meeting on re-fixation of gas prices to resolve financial crisis of the Petrobangla.
Asked about the decision on re-fixation of gas and oil prices, energy adviser said: "The government is not thinking about increasing the gas prices considering the devastating flood, that already affected the economy badly."
The government has dropped its plan to increase the gas price, he said.
The Petrobangla has been incurring a monthly loss of around Tk 800 million for purchasing gas at a higher rate from the IOCs.
The state-owned entity has been purchasing gas worth Tk 2.10 billion a month from the IOCs, which it sells for Tk 1.30 billion.
Petrobangla currently supplies around 1,660mmcfd gas to the national grid, of which it procures around 714mmcfd from the IOCs and rest from its subsidiaries.
It purchases gas from its subsidiary companies at Tk 7.0 per 1,000 cubic feet, or one unit, and for around Tk 192 from IOCs. Its average selling price is around Tk 94.
The division has prepared a proposal for raising the gas prices for domestic and bulk users as well as the compressed natural gas (CNG) price and already placed it before the council of advisers.