Energy experts and economists Monday told a seminar that Bangladesh would have to count “subsidies” and “penalties” if it accepted Tata’s offer on gas price and supply guarantee, reports BD News.

Prof Hossain Mansur, chairman of the Soil Science Department of Dhaka University, said Tata offered $ 1.47 for per thousand cubic feet (MCF) of gas for initial 5-6 years, which is 0.3 percentage point less than the previous offer of the Tata itself.

Citing government’s current purchase of gas from Chevron at $ 3.1 per MCF, he said: We will have to pay $1.65 for per MCF as subsidy for the Tata investment. The annual loss of the country as subsidy will stand at $ 120 million.

Nuruddin Mahmud Kamal, a former chairman of Power Development Board (PDB), referred to the tariff in Canada, the Netherlands, USA and Myanmar and said the price of per MCF gas on the international markets now is over $ 5.0.

Quoting official estimates, Prof Badrul Imam of Geology Department of the university said that the existing reserve of 13.75 trillion cubic feet of gas would be depleted by 2011.

“The government will have to face penalty if it accepts the proposal of Tata on 10-14 years’ gas supply security,” he said.

Prof MM Akash of Economics Department termed the Tata’s proposal as economically non-profitable for Bangladesh and said the issue of long-term energy security is important for the country.

The Soil Science Department organised the seminar, also addressed by SKM Abdullah, a former chairman of Petrobangla. Rafidul Islam Khan, a former secretary of Planning chaired the meeting.