Platts: Bangladesh to consider upstream costs in setting gas tariffs

Bangladesh has for the first time decided to set the domestic gas tariffs in line with the costs of production following requests from international oil companies for an increase, a former senior Petrobangla official told Platts Monday, October 20.

The Energy and Mineral Resources Division of the Ministry of Power, Energy and Mineral Resources, or MPEMR, asked Petrobangla earlier this month to propose an increase in the gas tariff by calculating upstream costs, former Petrobangla chairman Hussain Monsur said.

"We have started calculating the upstream costs of natural gas production," he said.

Natural gas will be treated as a commodity for the first time in the country and a tariff hike will be proposed accordingly, Monsur said. MORE