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Karnaphuli Gas Distribution Company Limited

Hotline: 16512

Historical Background

The history of the use of Natural Gas as a source of energy and feed-stock in Bangladesh dates back to early sixty’s. Haripur Gas Field, discovered in Sylhet district in the year 1955, came into commercial production in 1961 with the supply of gas to Natural Gas Fertilizer Factory (NGFL) at Fenchuganj by 28 miles 8” DN pipeline. The Chatak Gas Field, discovered in 1959 was brought into commercial production with commencement of gas supply to Chatak Cement Factory in 1960 12 miles long transmission pipeline.

In December 1971, after nine months of liberation war, Bangladesh emerged in the world map as a new independent state with the same geographical boundary of the then East Pakistan. Plunged into a state of total economic collapse following the war of liberation, vigorous activities were immediately started at all levels to rebuild the country. Certain national priorities were set by the then Govt. and significant changes were brought about in the management of development activities. A no. of Sector or Corporations were formed and each of them was entrusted with the operation and management of the units under it. In March 26, 1972 Govt. has formed “Bangladesh Oil, Gas & Mineral Corporation (BOGMC)” under the Presidential Executive Order.

After Arab Israil war in 1973 a serious energy crisis prevailed around the world. In this respect at that time a plan was taken for growth of a vibrant industrialization out side of the capital city. Bakhrabad Gas Systems Ltd. was formed as a part of that plan.
The port city of Chittagong is the commercial capital city of Bangladesh. Due to expansion of industry and commercial customers and as a fuel increasing the demand of natural gas Bangladesh government took the positive initiative to build separate gas Distribution Company for better management and efficient customer service for grater Chittagong region.

Karnaphuli Gas Distribution Company Ltd. (KGDCL) was formed in February 2010 as a joint Stock Company (Under the Company’s Act 1913) of the Government of Bangladesh, with a view to distributing natural gas to greater Chittagong. The authorized capital was Taka 30 million only, divided into 30000 shares of Taka 10.00 each. Ninety percent of the shares were subscribed by the then central Government of Pakistan and remaining ten percent by the Shell Oil Company.

The basic objective of the Company was to construct, own and operate natural gas distribution facilities in Chittagong & Chittagong Hill Tract districts with the right of purchasing, transmission, distribution, sales and disposal of natural gas.

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