The Canadian company conveyed the decision to the government immediately after it received yesterday a letter about fixing the price of gas being supplied from Feni gas field.

On Tuesday, a high profile meeting between the Niko chief and the advisor to the energy ministry failed to resolve the gas price issue.

Official sources said the government offered to set the tariff of per thousand cubic feet of gas from Feni reserve at $ 1.75. But Niko rejected the offer demanding that the price should be fixed at $ 2.35.

Niko has been supplying some 35mmcf gas per day to Petrobangla from its Feni gas field for the last one year.

The price of gas offered by the government is unacceptable to the company. "That's why we'll move for the international arbitration," said Niko chief Edward Simpson following his meeting with Energy Advisor Mahmudur Rahman on Tuesday.