Overdue LNG import bills surpass $600m
The government is up against a $607 million debt for imported liquefied natural gas (LNG), including gas purchased from the US energy company Chevron.
Data from the Energy Division indicate that, beyond the payments owed for LNG imported from Qatar and Oman under long-term contracts, there are also overdue bills for LNG purchased from the spot market for July and August.
As of 9 September, the outstanding bill for LNG imports was $633 million. On 10 September, the government paid off $25.61 million to QatarEnergy, the state-owned petroleum company of Qatar.
This has reduced the arrears to $607.35 million.
According to officials, the Energy Division has requested that the Finance Ministry increase the supply of dollars and expedite the payment of these arrears.
The country’s gas crisis has reached a critical point, fuelled by a combination of rising LNG import bills, a dollar shortage, and delays in approving spot market LNG imports. The situation worsened further as cabinet meetings to address government procurement could not be held due to the recent student movement.
The gas crisis has had a direct impact on the power sector, as many natural gas-based power plants are struggling to operate efficiently.
Additionally, one of the two Floating Storage and Regasification Units (FSRUs) at Cox’s Bazar became inoperable after sustaining damage during Cyclone Remal, reducing the capacity to discharge imported LNG by half.
According to the Energy Division, both the FSRUs became operational on 11 September, supplying around 1,100 million cubic feet of gas per day (mmcfd).
A senior official at the Energy Division, who spoke anonymously, told TBS, “Due to mounting arrears, supplier countries attempted to reclaim two LNG cargoes on 2 and 9 September. The Energy Division urgently requested their release.”
The official also highlighted the fact that intensified student protests and the resulting internet blackout hindered transactions with foreign countries, leading to a significant increase in arrears. Efforts are underway to resolve the outstanding payments.
As of 9 September, $224.82 million was owed to Chevron for gas supplies. On 10 September, the government paid $3.42 million, which reduced Chevron’s arrears to $221.40 million, the official added.
From 29 February to 29 August, a total of seven invoices from Chevron remain overdue. On 11 September, Chevron officials met with Finance Adviser Salehuddin Ahmed to request payment of the outstanding amount.
Bangladesh imports LNG from Qatar and Oman under long-term contracts. As of 9 September, the outstanding bills were $164 million for QatarEnergy and $100 million for Oman. On 10 September, the government paid $6.19 million to QatarEnergy and $3 million to Oman.
Additionally, the Energy Division settled two of QatarEnergy’s bills in May and July, using loans from the International Islamic Trade Finance Corporation (ITFC), with one ITFC loan instalment also remaining due in May.
The Energy Division also procured gas from the spot market through LNG suppliers such as Vitol Asia, Gunvor Singapore Pte Ltd, and Excelerate Energy. An overdue bill of $87.20 million for gas supplied by these three companies remains.
