DHAKA, June 24 (V7N) – Jalalabad Gas Transmission and Distribution System Limited today inked a significant 10-year agreement with LafargeHolcim Bangladesh, a leading cement manufacturer, for gas supply at a rate of Tk. 40 per cubic feet, a price fixed by the Bangladesh Energy Regulatory Commission (BERC). The deal, set to commence in January 2026, was witnessed by Dr. Muhammad Fouzul Kabir Khan, Adviser to the Power, Energy and Mineral Resources Ministry, who hailed it as a positive signal for foreign investment in Bangladesh.

Addressing the signing ceremony at Bidyut Bhaban, Adviser Khan emphasized the government's commitment to energy security. "We are working sincerely on energy security in the country," he stated. "Amid the war, an oil ship arrived at port, though we have sufficient reserve. Suppliers bring oil from different places, which is our advantage."

When questioned about energy subsidies and pricing, the Adviser reiterated the government's cautious approach. "We have some cautions. Bangladesh Petroleum Corporation (BPC) has some money. If necessary, we will adjust from there," he explained. He underscored the high amount of subsidies in the gas sector, indicating that further increases would be unsustainable. In line with this, he revealed that the agreement with Karnaphuli Fertilizer Company Limited (KAFCO) is also under review, with KAFCO expected to pay market rates for gas.

Highlighting the broader implications of the LafargeHolcim agreement, Dr. Khan said, "A deal is not just a gas supply agreement. It is also a message to the world that Bangladesh is a good place for investment."

Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of Bangladesh Investment Development Authority (BIDA), echoed this sentiment. "We are working to retain old investments along with new investments. We are happy to sign an agreement with Lafarge, a global leader," he remarked. "This agreement will convey a message. Those who come to invest here may try to get to know them. Let them get a good idea about Bangladesh. I think many people will be interested in their feedback."

Swiss Ambassador to Bangladesh Reto Renggli noted that such agreements and the use of advanced technology would play a significant role in Bangladesh's graduation from Least Developed Country (LDC) status. Bangladesh is currently set to graduate from LDC status in November 2026, a process that requires meeting specific criteria related to Gross National Income (GNI) per capita, Human Asset Index (HAI), and Economic Vulnerability Index (EVI).

EU Ambassador and Head of Delegation Michael Miller also confirmed their ongoing efforts to increase investment in Bangladesh. The ceremony, chaired by Energy Division Secretary Md Saiful Islam, was also attended by Spanish Ambassador to Bangladesh Gabriel Sistiaga Ochoa de Chinchetru.

Engineer Rafiqul Islam, Managing Director of Jalalabad Gas Transmission and Distribution Systems Limited, delivered the welcome speech. Iqbal Chowdhury, CEO of LafargeHolcim Bangladesh, affirmed that the company is committed to developing skilled manpower alongside its cement manufacturing operations.

This agreement comes after previous reports indicated a long-standing dispute between LafargeHolcim Bangladesh and Jalalabad Gas regarding gas pricing, which had even led to arbitration. The renewed agreement at a BERC-fixed rate signals a resolution to this issue and a commitment to continued operation for LafargeHolcim's integrated cement plant, which is crucial for the country's infrastructure development.

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