Jalalabad Gas Transmission and Distribution System Limited (JGTDCL) is facing uncertainty over the recovery of Tk 786 crore in outstanding dues following a decision taken during the interim government. Under pressure from a special assistant to the former chief adviser and intervention by the then Energy Adviser, Dr. Muhammad Fouzul Kabir Khan, the company was allegedly compelled to renew its gas supply agreement with LafargeHolcim despite leaving a substantial amount of unpaid bills unsettled. The recovery process has since become entangled in legal complications.

According to relevant sources, Jalalabad Gas had prepared to disconnect gas supplies to LafargeHolcim after securing a favourable court ruling on the outstanding payments. However, the initiative was reportedly obstructed by the then energy adviser’s intervention. Questions have also been raised over the role of a special assistant to the former chief adviser.

On November 19, 2025, Jalalabad Gas issued a 24-hour notice to LafargeHolcim demanding payment of its outstanding gas bills. Following the notice, representatives of the company met the energy adviser and sought additional time. Although they were granted seven days following discussions, LafargeHolcim approached the High Court instead of clearing the dues. The court subsequently issued a status quo order on the disconnection of its gas supply.

Jalalabad Gas filed a review petition challenging the order. On December 11, Justice Khizir Hayat Khan, after hearing the matter, cancelled the status quo order, removing the legal barrier to disconnecting the gas supply. Jalalabad Gas then prepared to disconnect the supply to LafargeHolcim’s cement factory. However, the company immediately moved the Chamber Court challenging the decision.

Within hours of the order in favour of Jalalabad Gas, its implementation was stayed by the Chamber Court. Although an appeal was subsequently filed, the case has remained unresolved for 11 months. As a result, the recovery of the outstanding dues continues to hang in the balance.

JGTDCL Managing Director Md. Atiqur Rahman said the case is currently awaiting a hearing.

The dispute between Jalalabad Gas and LafargeHolcim over gas bills began in September 2015, when gas prices for industrial establishments were increased. Despite several subsequent price hikes, the company refused to pay bills at the revised rates. LafargeHolcim maintained that it could not pay more than Tk 8.31 per cubic metre, the rate specified in its original agreement.

At the time, other cement factories in the country were paying Tk 30 per cubic metre, while LafargeHolcim was making partial payments at an effective rate of around Tk 11. On the other hand, Jalalabad Gas continued calculating bills according to the rates set by the Bangladesh Energy Regulatory Commission (BERC). The resulting outstanding amount eventually reached Tk 786 crore.

In 2020, when Jalalabad Gas issued a final notice demanding payment at the revised rates, LafargeHolcim approached the court. On January 3, 2021, the court imposed a temporary injunction against disconnection of the gas supply and directed the company to deposit an amount equivalent to the outstanding dues as a bank guarantee.

Later, following a leave-to-appeal petition filed by Jalalabad Gas, the Appellate Division directed LafargeHolcim to pay gas bills at the BERC-approved rates. It also ordered the company to deposit Tk 10 crore from the outstanding amount within one month, followed by instalments of Tk 10 crore every three months. In compliance with the order, LafargeHolcim paid Tk 90.25 crore.

The order further stated that failure to make the required payments would automatically invalidate the temporary injunction against disconnection issued on February 7. Following the order, LafargeHolcim deposited bills calculated at BERC-approved rates and approximately Tk 90 crore towards the outstanding dues up to September 15, 2023.

Meanwhile, in an international arbitration case (PCA 2021-21), Lafarge secured an award by a two-to-one majority. Following that decision, the company resumed making partial payments at the previously agreed rate.

Subsequently, the High Court Division delivered a full verdict after lengthy hearings in an arbitration application (05/2021). Jalalabad Gas received a certified copy of the judgment on August 3, 2025.

The judgment stated that the Appellate Division’s order in the leave-to-appeal case (694/2021), directing payment of outstanding dues in instalments, remained in force. No review or revision had been filed against that order. Therefore, the Appellate Division’s directive was still effective, and no fresh order was required on the matter.

Following the judgment, Jalalabad Gas and Petrobangla took initiatives to recover the outstanding amount. However, according to relevant sources, those efforts failed to move forward due to intervention by the ministry.

Jalalabad Gas signed a 20-year gas supply agreement with LafargeHolcim on January 19, 2003. Under the terms of the agreement, the company was notified on January 25, 2024, that the contract would not be renewed. However, the situation changed following the change of government. Amid criticism, a fresh 10-year agreement was signed with LafargeHolcim. Allegations have emerged that Jalalabad Gas was compelled to renew the contract without resolving the dispute over Tk 786 crore in outstanding dues.

Meanwhile, critics have questioned the rationale behind supplying 16 million cubic feet of gas daily to LafargeHolcim amid the country’s ongoing gas shortage. They argue that several power plants and industrial establishments are struggling to operate due to inadequate gas supplies. Most of the country’s six state-owned fertiliser factories remain shut for much of the time because of gas shortages, forcing the government to import fertiliser at higher costs.

Against this backdrop, critics question whether allocating such a large volume of gas for cement production is justified, particularly when the country’s cement production capacity is nearly twice its domestic demand.

Lafarge and Holcim were originally companies based in Switzerland and Paris, respectively. Lafarge operated in 64 countries, while Holcim had operations in 70 countries. The two companies merged in 2014 under the name LafargeHolcim.

In Bangladesh, the company operates a cement factory in Chhatak, Sylhet. It also has two grinding stations in Meghnaghat, Narayanganj, and another in Mongla, Khulna.

Despite repeated attempts to obtain comments on the allegations, no response could be obtained from LafargeHolcim.