LafargeHolcim Bangladesh inks 10‑year gas deal with Jalalabad
LafargeHolcim Bangladesh and Jalalabad Gas Transmission and Distribution System have signed two new Gas Sales Agreements (GSAs) — one for industrial use and another for captive power — for ten years, effective from 18 January 2026.
According to the agreement, Jalalabad Gas will supply a total of 16 MMCF of gas to the multinational cement manufacturer — at Tk40 per cubic meter for its cement plant and Tk42 per cubic meter for its captive power plant, as per the new rates set by the Bangladesh Energy Regulatory Commission (BERC).
The agreements were signed by Iqbal Chowdhury, CEO of LafargeHolcim Bangladesh, and Jitendra Kumar Das, Company Secretary of Jalalabad Gas, on Tuesday. The signing ceremony was attended by Fouzul Kabir Khan, adviser to the power, energy and mineral resources ministry, and Chowdhury Ashik Mahmud Bin Harun, executive chairman of the Bangladesh Investment Development Authority (BIDA).
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LafargeHolcim announced the agreement in a disclosure submitted to the Dhaka Stock Exchange (DSE) today (25 June). Following the news, LafargeHolcim Bangladesh's share price rose 3.31% to close at Tk46.80, compared to the previous session.
Earlier, on 18 December last year, LafargeHolcim and Jalalabad Gas met at the energy ministry to agree in principle to extend the existing gas agreement. The two parties had first signed a 20‑year agreement in 2003, which came into effect in 2006 and will expire on 17 January 2025. Under that agreement, LafargeHolcim was paying Tk12 per cubic meter for gas.
According to LafargeHolcim Bangladesh's 2024 annual report, in March last year, Jalalabad Gas filed a petition with the High Court seeking to charge gas at the BERC‑approved rate retroactively from September 2015. The original agreement had a primary term of 20 years from the date gas supply commenced, after which it could be extended automatically for five more years unless terminated by either party.
In January 2024, Jalalabad Gas announced its intention not to extend the agreement beyond the primary term. Since then, LafargeHolcim engaged with stakeholders to resolve the matter.
A senior official of the Energy Ministry said, "The new agreement signed today resolves the dispute between the two organisations. As a result, after the expiry of the previous contract, LafargeHolcim Bangladesh will now continue to receive gas under the new agreement."
