The interim government has decided to extend an agreement between the Jalalabad Gas Transmission and Distribution System and LafargeHolcim Bangladesh PLC on gas supply from January 17 of 2026, allaying concerns of investors.

The decision came in a meeting at the Ministry of Energy and Mineral Resources, said the listed multinational cement manufacturer in a press release yesterday.

The existing gas sales deal had come into effect in 2003 for the cement company's plant at Chhatak in Sunamganj.

A couple of years ago, the gas company informed the cement maker that gas prices set for the nation by the government or Bangladesh Energy Regulatory Commission would be applicable for it and not that mentioned in the deal.

The gas company also cited that the price stated in the deal was comparatively low.

In February 2021, LafargeHolcim Bangladesh decided to resort to arbitration and in September 2023, the courts ruled in favour of abiding by the deal.

Afterwards, the gas company informed that the 20-year would not be extended once it expired.

"Foreign investors like LafargeHolcim are crucial drivers of economic growth," Chowdhury Ashik Mahmud Bin Harun, executive chairman of Bangladesh Investment Development Authority and Bangladesh Economic Zones Authority, told yesterday's meeting.

"Fast, decisive steps in such instances portray our intention to support the business community. We are open for business," he said.

The authorities have resolved the long-pending issue with utmost priority, which portrays their support towards foreign direct investment in Bangladesh, said Chistof Hassig, chairman of LafargeHolcim Bangladesh PLC.

The gas supply is crucial for the plant, which produces clinker, cement and aggregates.

Stocks of LafargeHolcim traded at Tk 53.60 on Thursday, which is nearly the lowest in a year.