Bangladesh’s energy repayment cost to foreign companies has surged to US$416 million in a single month, driven by increased imports of liquefied natural gas (LNG) amid frequent depletion of local natural gas output.
“Our LNG imports rose to 11 cargoes over the past two months, pushing the import bill to $416 million each in July and August 2025,” an energy sector official told Just Energy News on Wednesday.
He noted that at the beginning of the year, the country projected demand for only 88-90 LNG cargoes. However, the requirement increased to 94 during Ramadan to ensure uninterrupted supply to power plants. Following strong demand from industries in May, the target rose to 98 cargoes after the June budget session. The current projection now stands at 108 cargoes, reflecting the accelerating demand caused by dwindling domestic gas production.
“Two months ago, our repayment requirement ranged between $350 million and $370 million. The amount may increase further considering rising LNG demand,” the official added, requesting anonymity.
The state-owned Petrobangla is responsible for the payments to international suppliers including QatarEnergy, Oman, Vitol, Gunvor, TotalEnergies, Excelerate Energy, and Chevron Bangladesh. To meet the $416 million obligation, Petrobangla instructed gas distribution companies last Wednesday to ensure timely fund transfers.
According to Petrobangla, local gas supply has dropped by around 140 mmcfd from various fields, including Chevron-operated Bibiyana, placing additional pressure on LNG imports and repayments.
Energy and Mineral Resources Division Secretary Mohammed Saiful Islam told Just Energy News that the government has given top priority to completing all ongoing projects by mid-2026 to boost domestic gas output. For long-term energy security, the government also plans to extend government-to-government (G2G) negotiations for LNG imports, onshore and offshore exploration of natural gas.
He added that Bangladesh is preparing to raise annual energy import costs to between $1.2 billion and $1.5 billion as part of recent tariff negotiations.
Under a long-term supply deal signed on November 23, 2023, during the Awami League government’s tenure, Bangladesh will import 232 LNG cargoes from U.S.-based Excelerate Energy LLC over 15 years starting in early 2026. The agreement, valued at $8.5 billion, is one of the country’s largest energy import contracts.
Excelerate will deliver 0.85–1.0 million tonnes per annum (MTPA) of LNG through 2040. According to the government’s position paper, Petrobangla will import 28 cargoes during 2026–27, followed by 16 cargoes annually from 2028 to 2040, at an average annual cost of around $600 million.
In addition to the long-term contract, Excelerate has also supplied LNG on the spot market, delivering 16 cargoes worth approximately $637 million to date. The company remains eligible to bid in future tenders, potentially supplying an additional $200 million in spot cargoes annually.