Volume 16, Issue 2

 

Considering the import of expensive LNG, the public sector gas transmission, distribution and LNG supply companies have submitted proposals to BERC for fresh gas price hike. The companies argue that the cost of gas would be increased due to import of LNG while industries say the price hike would make them uncompetitive. The energy regulator after scrutinizing the proposals also suggested increasing the price. But representatives of gas consumers during the recent public hearing held in Dhaka argued that the hike would not be required if wastage, theft and pilferages in the gas value chain can be addressed. Experts observed that due to rapid depletion of proven gas resources, there is no alternative now other than importing expensive LNG. The situation demands rational increase of gas price. But they suggested the government to announce a long-term gas-pricing strategy to facilitate investors in taking investment decisions. The EMRD believes that even the higher price of gas following RLNG introduction won’t harm domestic industries in retaining competitiveness. But many investors believe that it will not be possible for them to remain competitive after paying a higher gas price.


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