After failing to enhance local gas production, state-owned Petrobangla has now initiated a move to modify the current structure of the gas supply agreement (GSA) with future power plants in Bangladesh.
UNB has learnt that a draft of the revised GSA was recently sent to the Bangladesh Power Development Board (BPDB) seeking its opinion on the proposed move. And on their part, a top BPDB official said, the file has been forwarded to the Power Division with notings.
“We'll soon hold a meeting with all power companies -- public and private -- to discuss in detail the merits and demerits of the revised GSA, before taking a final call on the proposal," said a senior official of the Power Division, who didn’t wish to be named.
He, however, said that the Power Cell, a technical wing of the Power Division, had been asked to analyse the proposal and prepare a detailed report, which would help the Power Division to take a "right decision" on the file.
Sources said that the recent excessive hike in gas prices in the global market due to the Russia-Ukraine war forced Petrobangla to initiate such a move to revise the GSA.
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Petrobangla is the sole authority of gas supply to any power plant in the country. As a result, the BPDB and a private company have to sign a GSA with Petrobangla before moving for setting up a gas-fired power plant in the country.
“After a series of discussions and negotiations, Petrobangla sign a GSA with a power plant ensuring a timely supply of gas," said an official. "The recent volatility in gas and crude prices in the global market has put the organisation in a dilemma."