GTCL is in red after huge investment on gas transmission02 February 2023
Staff Reporter :
Amid gas shortages, the Gas Transmission Company Limited (GTCL) has been compelled to make significant investment to expand its transmission pipeline which resulted in an income shortage in the last Fiscal year. In the previous fiscal year, the net loss of this state-owned company was Tk 217 crore although the company had a long history of profitability.
According to the energy experts, investment to expand its transmission pipeline without proper analysis, gas shortage, debt payments, increased service cost, rise of operative cost putting the company at high risk and eventually it goes in red.
The total investment of the organisation in the recently completed and ongoing projects in the construction of gas transmission lines is 7 thousand 206 crores 70 lakhs, most of which has been financed through local and foreign loans.
Most of these loans will be repaid from the company's gas transmission revenue. However, due to reduced gas supply to the country's national grid and higher investment in the project considering the size of transmission charge income, the company is now heading towards financial losses.
It is reported that it has extended the national gas grid to Khulna but the supply could not be started even in 8 years of making the infrastructure ready. Some other pipelines are also being operated at well below their respective designed capacities.
Considering only the currently implementing transmission lines, it is implementing four projects to build 225 km of transmission lines. The total investment in these projects including foreign and local loans and company's own financing is 3 thousand 648 crores.
Uncertainty in gas supply has increased GTCL's risk along with its huge investment in the irrational expansion projects. The company would not have been exposed to such risk if the investment had been made accordingly by ensuring adequate supply of gas, energy experts said.
Seeking animosity, an official of GTCL said that, GTCL has suffered financial losses due to low transmission charges, disinvestment in projects, non-targeted supply of fuel due to gas crisis and financial deficit caused by currency devaluation.
If the gas circulation and its charges are not increased, this situation will become more evident in the coming days, he added.