Karnaphuli Gas Distribution Company Limited (KGDCL) has signed an agreement to ensure uninterrupted supply of natural gas to Karnaphuli Fertilizer Company Limited (KAFCO). Under this deal, an average of 55 million cubic feet of natural gas per day will be supplied to the fertilizer manufacturer.
The gas sales agreement between KAFCO and KGDCL was signed on Wednesday at Petrocenter, Dhaka. KAFCO is a foreign joint-venture company that produces fertilizer using natural gas. Although it is located in Chattogram, being a foreign entity, Bangladesh must purchase fertilizer from KAFCO in foreign currency at international market rates.
In contrast, state-owned fertilizer factories in Bangladesh often remain shut for extended periods due to gas shortages.
On behalf of KGDCL, Company Secretary Kabir Uddin Ahmed signed the agreement, while Chief Commercial Officer and Company Secretary Khaja Saidur Rahman signed on behalf of KAFCO.
The signing ceremony was presided over by Energy and Mineral Resources Division Secretary Mohammad Saiful Islam. Also present were Industry Secretary Md. Obaidur Rahman, KGDCL Board Chairman S.M. Moin Uddin Ahmed, Petrobangla Chairman Rezanur Rahman, BCIC Chairman Md. Fazlur Rahman, and other senior officials from the Energy Division, KAFCO, KGDCL, and Petrobangla.
Outstanding Dues Cleared After Signing
Following the agreement, KAFCO handed over two cheques to KGDCL — one amounting to BDT 923.81 crore for outstanding gas bills and another worth BDT 34.37 crore for demand charges.
Subsequently, KGDCL transferred a cheque of BDT 634.01 crore to Petrobangla as part of their dues.
According to a press release from the Energy and Mineral Resources Division, this agreement will ensure a stable gas supply to KAFCO, which will directly contribute to increased agricultural and industrial productivity in the country.