Both the government and the major opposition alliance have declared that they are ready and willing to begin exporting natural gas. Both sides independently emphasized that they would only export after meeting the demand of the internal market.

Despite the growth in demand internally, due to the recent expansion of gas-based power generation, a huge surplus is available. The estimated reserve of potential natural gas is 88 trillion cubic feet while the actual reserve has come up to 18 trillion cubic feet.

Additionally, the government is reviewing its existing policy for small power plants. By an order dated April 27 2000 it has declared that the current policy for production and marketing for 10 megawatt power plants would come under review. A number of important recommendations are being made, including allowing plant owners to transport and sell electricity directly to consumers. The sponsor or producer company would receive permission subject to payment of a licence fee to the government.

For further information on this topic please contact Azarul Haque at Legal Remedy by telephone (+880 2 955 0645) or by fax (+880 2 955 0645) or by e-mail ([email protected]).

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