The government will clear overdue payments amounting to approximately $700 million to international oil companies (IOCs), including Chevron Bangladesh and QatarEnergy, by the end of this month.
Power, Energy, and Mineral Resources Adviser Muhammad Fauzul Kabir Khan disclosed the plan to Just Energy News on Tuesday, citing efforts to resolve mounting financial obligations amid growing pressure from domestic and international stakeholders.
Several IOCs had threatened to halt local gas supply and LNG shipments from long-term contracts due to unpaid dues.
“We are committed to settling the overdue payments this month,” Khan said. He added that discussions with the Finance Adviser and the Bangladesh Bank Governor had been held to facilitate the payments.
Khan also revealed that the government had already incurred $25 million in interest due to payment delays and noted that LNG prices had surged as a consequence.
On Monday and Tuesday, the energy and mineral resources division disbursed over $100 million through Letters of Credit (LCs) and direct cash payments.
“Our priority is to ensure a steady energy supply,” Khan stated, adding that gas supply would be increased to 1,200 mmcfd, with an additional 300 mmcfd allocated for power generation during the summer.
Currently, Bangladesh’s natural gas supply stands at 2,850 mmcfd, while demand hovers around 4,000 mmcfd.
Khan also mentioned that the interim government is taking similar steps to address overdue payments in the power sector.
