Karnaphuli Gas to supply 55m cubic feet of gas to Kafco under a new agreement

The Karnaphuli Gas Distribution Company Limited will supply 55 million cubic feet of natural gas per day to Karnaphuli Fertilizer Company Limited (Kafco) under a newly signed sales agreement.

The contract was signed today (30 July) at the Petrobangla headquarters in Dhaka, aiming to ensure an uninterrupted gas supply to Kafco, which plays a key role in the country's fertiliser production.

The Ministry of Power, Energy, and Mineral Resources stated in a press release that the deal marks a significant step toward stabilising energy supply for agriculture-based industries.

As part of the signing, Kafco handed over two cheques to KGDCL Chairman S M Moin Uddin Ahmed: one worth Tk923.81 crore for outstanding gas bills and another Tk34.37 crore as demand charges.

KGDCL Managing Director Engineer Salahuddin also transferred a cheque of Tk634 crore to Petrobangla Chairman Md Rezanur Rahman to settle outstanding payments.

Officials noted that the daily supply will boost Kafco's fertiliser production capacity, supporting national food security and reducing dependence on imported fertiliser.

Company Secretary Kabir Uddin Ahmed signed the agreement on behalf of KGDCL, while Kafco's CCO and Company Secretary Khaja Saidur Rahman signed on Kafco's behalf.

The signing ceremony was chaired by Energy and Mineral Resources Division Secretary Md Saiful Islam, and attended by senior officials from the Ministry of Industries, Petrobangla, BCIC, Kafco, and KGDCL.

Officials said the agreement reflects the government's continued commitment to strengthening energy security for industrial growth, particularly in the agriculture sector.