TATA and gas price
Mohammad Sarwaruddin, Canada
I am indeed shocked to learn that TATA wants to negotiate gas price with Petro-Bangla at 1U$/Mcf, which is way below the gas price at any time in North America since 1995. While I fully understand the positive impact of foreign direct investment on Bangladesh economy, the US$2 billion investment by TATA is not alone a sufficient condition for selling gas to TATA at 1US$/Mcf. Obviously, the loss figure will be different if discounted cash flow and variable gas prices are accounted for, nonetheless, it will be a staggering figure if we consider the gas price by international market price.
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