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Welcome to Gas Transmission Company
Limited (GTCL)
Background of Creation/Formation of the Company
The idea for creation of National Gas Transmission Company
was conceived on the basis of recommendation made be M/s. Coopers and
Librand Associated, a Consultant appointed by DFID (the then ODA) in the
year 1987 as a co-financier of multi-donor (IDA, CIDA, OPEC) funded Second
Gas Development Project (SGDP). The terms of reference of the Consultant
was to review the existing organization structure of BOGMC and its
subsidiary organization together with the Financial, Legal and
Administrative framework within which they operate and to make
recommendation for necessary changes, Accordingly they proposed to create a
number of companies including a National Gas Transmission Company towards
fulfillment of covenants in the staff appraisal Report of SGDP in order to
derive following benefits:
A. The separation of transmission from distribution is a
very common practice where multi-field production is to be piped over a
large geographical area to a number of distribution region.
B. Separation of transmission system from distribution would
enhance other customer services by the Distribution companies.
C. Separation of transmission system would ensure
improved management of the National Gas Grid and allocation of gas to
distribution Companies as per duly nominations.
Subsequently World Bank also carried out a study in
connection with the activities of the 3 (three) existing distribution
companies and separation of transmission activities from the distribution
companies as a covenant of Gas Infrastructure Development Project (GIDP).
According the World Bank (IDA) Mission
prepared a strategy paper on the need and justification of the
formation of a National Gas Transmission Company (NGTC).
Pursuant to recommendation of Donor agency and taking into
consideration the benefits of separate transmission entity GOB decided to
create Gas Transmission Company Ltd. (GTCL) entrusted with the
responsibility to operate North-South Gas and Condensate Pipeline and
implementation of 30’’ dia 57.50 Km Ashugongj-Bakhrabad
(A-B) Gas Transmission Pipeline Key component of IDA funded Gas
Infrastructure Development Project (GIDP) towards establishment of National
Gas Grid. The objective of this was to divert surplus gas from fields
located in the North-Eastern region toward Chittagong region to supplement gas
deficit resulted in due to depletion of production from Bakhrabad Gas
Field.
As per provision of Memorandum and Articles of Association
and subsequent transmission strategy, GTCL will own operate, maintain and
construct all high pressure Gas Transmission pipelines under a phased
Programme. Moreover, GTCL shall solely be responsible for
construction of future High Pressure Transmission Pipelines.
The incorporation of GTCL
In accordance with decision of government, GTCL was
registered on 14.12.93 under the Company’s
Act-1993, as a Public Limited Company with an authorized Capital of Tk. 1000.00
Crore of 1,00,00,000 shares of Tk 1000 each. The company was formed with
the objective of establishing a balanced and reliable national gas
transmission network with effective and unified control to ensure
transportation of required gas for meeting the increasing gas demand in the
country. GTCL commenced its formal operation through convening the first
meeting of the board of Directors on 23.01.94 and subsequently started its
commercial business from March, 1994.
To use Bangladesh's
natural gas resources for industrial and commercial purpose, Titas
GasTransmission and Distribution Company Limited was established in 1964 with
authorized and paid up capital of Tk. 17.8 million. Since the commencement
of the company, its working sphere has been expanded steadily and currently
it has become the largest among the four existing gas distribution
companies of the country. ( 1 US$ ~Tk.60.00,
1 Million = 10 Lakh)
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