US energy giant Chevron and QatarEnergy have requested the payment of approximately $370 million in overdue natural gas bills from Bangladesh.
Chevron is owed $220 million by Petrobangla, including $175 million for gas supplies and $45 million in value-added tax (VAT) and interest.
The company has sent an official letter to the Energy and Mineral Resources Division, signed by Managing Director and President Eric M. Walker last Thursday, urging the government to clear at least $75 million to avoid disruptions in development activities. Chevron’s monthly billing for gas and condensate supplies is around $40 million.
Chevron operates in Bangladesh’s Blocks 12, 13, and 14, producing nearly 60% of the country’s natural gas and 83% of its domestic condensate.
However, production from its Bibiyana gas field, the country’s largest, is declining, with supply falling to 977.5 million cubic feet on January 13, 2025, from a peak of over 1,300 million cubic feet.
In addition, the Qatari government has demanded $150 million in overdue payments for LNG supplied under a government-to-government arrangement.
Bangladesh imports 40 LNG cargoes annually from Qatar, a critical component of its energy mix since LNG imports began in 2018.
Bangladesh has projected the procurement of 115 LNG cargoes for fiscal year 2024-25 to meet rising gas demand, but the increased reliance on LNG, coupled with declining domestic reserves, has significantly raised production costs.
A Petrobangla official stated that procuring 101 LNG cargoes from spot markets and government deals would result in an estimated loss of Tk 22,315 crore, which will rise further with 115 LNG cargoes.
Petrobangla currently supplies 2,800-3,000 mmcfd of natural gas against a demand of 4,000 mmcfd. The official forecasts that the share of imported LNG in meeting gas demand will increase from 25% currently to 75% by fiscal year 2030-31.
To address the growing gap, Petrobangla has decided to double natural gas prices for industrial units, despite criticism from industrialists. Over the past six fiscal years, including the first half of the current fiscal year, the cumulative deficit has reached Tk 30,656 crore.
The situation underscores the urgent need for effective energy management and sustainable strategies to meet Bangladesh’s growing energy demands.
