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Govt to Settle Arrears with Int'l Energy Suppliers in 2 Months
The government has committed to clearing its arrears to international energy suppliers within the next two months, according to Fouzul Kabir Khan, energy adviser to the interim government.
"We plan to settle the arrears with international companies in the next two months," Khan confirmed, adding that the Finance Ministry has assured full support for the necessary payments.
He expressed optimism about making significant progress in resolving the overdue payments. “We anticipate a substantial breakthrough in clearing the arrears to international companies,” Khan told UNB on Wednesday.
Bangladesh has faced challenges in paying international suppliers for oil, gas, and electricity due to a foreign currency shortage. The country’s reserves dropped from $48 billion in 2023 to $22 billion in 2024.
Sources indicate that Bangladesh owes around $700 million in overdue payments to international oil companies (IOCs), including Chevron Bangladesh and QatarEnergy. When including overdue payments to power companies, the total arrears exceed $2 billion, according to a Ministry of Power, Energy, and Mineral Resources official.
Chevron Bangladesh, which supplies over half of the country’s local gas from its fields in Sylhet, is among the companies awaiting payment. The company’s outstanding balance is about $190 million, covering roughly five months of unpaid bills. Petrobangla, the state-owned energy company, pays around $40 million per month to Chevron.
The government has already started settling arrears with the Indian Adani Group, which has an outstanding balance of $600 million. "We are paying about $100 million to Adani Group, including a portion of the arrears, with its regular bill being around $80 million monthly," a Bangladesh Power Development Board (BPDB) official stated.
Due to outstanding payments, several IOCs have threatened to halt local gas supplies and LNG shipments from long-term contracts.
Meanwhile, Finance Adviser Salehuddin Ahmed emphasized the government’s focus on ensuring uninterrupted LNG imports, critical for industries, power plants, and households. His comments came after attending a meeting of the Advisors Council Committee on Government Purchases, where the committee approved the import of an LNG cargo for the current month.