LafargeHolcim’s stock on the Dhaka Stock Exchange rose by 1.46% to Tk 69.70 after winning an international arbitration case against Jalalabad Gas Transmission and Distribution. The Singapore-based International Arbitration Tribunal ruled in favor of LafargeHolcim, stating that Jalalabad Gas must repay over Tk 2.27 billion it had collected as an additional gas bill, which exceeded the agreed-upon ceiling price in the gas sales agreement (GSA). The disagreement started when Jalalabad Gas insisted on using the gas price set by the Bangladesh Energy Regulatory Commission (BERC), while LafargeHolcim believed that the GSA’s ceiling pricing was legitimate.
LafargeHolcim’s financial statement for April-June 2023 revealed that it had paid Tk 2.27 billion more than the GSA price due to the Appellate Division’s 2021 order to follow the BERC’s fixed gas rates. The company initiated the arbitration process in February 2021, seeking a resolution in its favor. This arbitration win is expected to have a positive financial impact on LafargeHolcim as it reclaims the excess payments.
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