VOL NO REGD NO DA 1589

Sunday, March 05, 2006

HEADLINE

POLITICS & POLICIES

METRO & COUNTRY

VIEWS & REVIEWS

EDITORIAL

LETTER TO EDITOR

COMPANIES & FINANCE

BUSINESS & FINANCE

LEISURE & ENTERTAINMENT

MARKET & COMMODITIES

SPORTS

WORLD

 

FE Specials

FE Education

Urban Property

Monthly Roundup

Saturday Feature

Asia/South Asia

 

Feature

13th SAARC SUMMIT DHAKA-2005

WOMEN & ECONOMY

57th Republic Day of India

US TRADE SHOW

 

 

 

Archive

Site Search

 

HOME

HEADLINE
 
Resuming gas supply to nat'l grid
Govt warnings fail to push Niko into submission
S M Jahangir
3/5/2006
 

          The Niko Resources (Bangladesh) has still remained rigid in its stand on discontinuation of gas supply to the national grid from its Feni field despite warning of legal actions by the government.
The Canadian oil and gas company - Niko - has made it clear that it will not resume the gas supply unless it receives clear assurances from the government on the fixation of gas price and payment of arrear bills.
"They (Niko) will not resume gas supply without getting sufficient assurance from the government on settlement of pending issues pertaining to the gas supply and purchase agreement (GSPA) and payment of outstanding bills," a senior government official said, quoting Niko.
The official further said the Niko has, however, expressed its willingness to discuss the issues with the government.
The company has already sough an appointment with the Energy Adviser Mahmudur, the official confirmed.
"A meeting between the government and the Niko is expected to take place after the arrival of the energy adviser, who is now outside the country on an official visit," he said.
The official, however, indicated that the current row over the suspension of gas was likely to be over following the upcoming crucial meeting.
The Niko stopped supplying gas from its Feni filed from February 27 last on ground of non-fix ation of gas price and payment of arrear bills by the government.
A day after the suspension, the government warned the Niko with tough legal measures unless it immediately resumed gas production and supply from its Feni field to the national grid.
In a formal letter to the Niko, the state-owned Petrobangla also expressed its resentment over the sudden and 'unilateral' decision on suspension of gas supply by the company.
The Petrobangla said that the Niko should have discussed the matter with the joint management committee (JMC) before going for the shutdown.
The Petrobangla, however, requested it to immediately restore gas production to an increased quantity from the field.
It also informed the company's country manager that the government was actively scrutinising the draft GPSA submitted by the Niko, saying that it would be settled in due course of time.
According to official sources, although the Niko started production and supply of gas since November 2004, the government has so far failed to sign a GPSA with it.
As a result, the fixation of gas price remained unsettled over the period, they noted.
Initially, the Niko asked US$ 2.35 for per unit (1,000 cubic feet) of gas from the government.
But the government formed a committee to fix the gas price from the Niko's Feni field, officials said, adding it recommended the rate of $ 1.75 per unit.
Latter, the Niko revised its previous rate to $ 2.10 per unit, according to sources.
They, however, said as per the recommended rate by the committee, the government required to pay $ 14 million against its purchase of gas from Niko while the amount could be $ 18 million as per the company's asking rate.
The government, on the other hand, paid only $ 4.0 million to the Niko, a government official informed the FE.
Although the Niko was able to supply gas between 28 and 29 million cubic feet per day (MCFD) to the national grid, the volume declined to only 2.0 MCFD in recent days due to some technical problems.

 

 
  More Headline
Banks write off bad loans worth Tk 95.16 billion
Govt warnings fail to push Niko into submission
Govt to tap private sector fund for Padma Bridge construction
Fertiliser crisis to go in a week
Country's 'future energy security will be at stake if no limit is retained on coal export'
AL keen to start talks on reform proposals
No sedition charge against JMB kingpin: Bhuiyan
Joint drive recovers huge arms, ammo in Bandarban
Engaging China 'an Australian priority'
Short supply of cane forces 8 sugar mills to close down
Brisk business with Shaekh's life, his surrender
Opec accuses Bush of threatening security
Bangladesh must 'eliminate corruption to make best use of its potentials'
EPB may get possession of rly land for building WTC
Drug trafficking and abuse problems in South Asia continue to be serious
Export thruí diplomatic missions grows by 14.94 per cent
Joint working group meet deferred by two months
Opposition rejects Thai PM's compromise offers
Asian Art show begins today
Corrigendum
Property worth Tk 5m gutted in N'ganj
PM visits Nandail today
5 hurt in bomb blast at Urs in Habiganj
 

Print this page | Mail this page | Save this page | Make this page my home page

About us  |  Contact us  |  Editor's panel  |  Career opportunity | Web Mail

 

 

 

 

Copy right @ financialexpress.com