(BSS) – A gas sales and payment agreement was signed between Karnaphuli Gas Distribution Company Limited (KGDCL) and Karnaphuli Fertilizer Company Limited (KAFCO) today at Petrobangla in the city.

Company secretary of KGDCL Kabir Uddin Ahmed and chief commercial officer (CCO) and company secretary of KAFCO Khawaja Saidur Rahman signed the agreement on behalf of their respective sides.

Under the agreement, KGDCL will supply 55 million cubic feet daily (MMCFD) gas to KAFCO, which will ensure uninterrupted gas supply to KAFCO.

Through the deal, KAFCO’s fertilizer production will increase and play an important role in ensuring the country’s food security.

Energy secretary Mohammad Saiful Islam chaired the signing ceremony, while Industries secretary Md Obaidur Rahman, Chairman of the Board of Directors of KGDCL SM Moin Uddin Ahmed, Chairman of Petrobangla Md Rezanur Rahman, Chairman of BCIC Md Fazlur Rahman and Managing Director of KGDCL and officials concerned were present.

Industries secretary handed over two cheques amounting to Tk 923,81,18, 616 and Tk 34,37,35,848 to KGDCL for the outstanding gas bills and demand charge respectively on behalf of the KAFCO.

Besides, KGDCL Managing Director Professor Salahuddin will hand a cheque amounting to Tk 634,01,77,265 over to Petrobangla Chairman Md Rezanur Rahman for the outstanding bills.

The agreement signing was a reflection of the government`s commitment to strengthen energy security in the country’s economic progress, especially in the agro-based industry.