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HomeEnergyMounting power sector arrears push Petrobangla into Tk 183cr default

Mounting power sector arrears push Petrobangla into Tk 183cr default

Unpaid natural gas bills have mounted to over Tk 17,628 crore as of June 2025, creating a severe liquidity crisis for Petrobangla and hampering its ability to clear dues for imported LNG, officials said.

The Energy and Mineral Resources Division (EMRD) has expressed concern over the growing stockpile of arrears, particularly from the power sector, which accounts for the lion’s share of the unpaid bills to Tk 16,531.81 crore.

According to official data, public power plants alone owe Tk 6,039.25 crore, while Bangladesh Power Development Board (BPDB)-owned plants have outstanding bills of Tk 2,342.60 crore. Independent Power Producers (IPPs) add another Tk 6,039.25 crore to the overdue tally.

Fertilizer factories also owe Tk 1,096.54 crore.

The mounting arrears have directly affected the operations of distribution companies. Titas Gas Transmission and Distribution Company Ltd (TGTDCL) has yet to recover Tk 6,843.08 crore from power stations, severely limiting its ability to pay LNG import bills. Similarly, Bakhrabad Gas Distribution Company Ltd is struggling to collect Tk 3,712.64 crore, mainly from public and private power plants.

Other distribution companies are also under pressure, with dues standing at Tk 2,585 crore under Jalalabad Gas Transmission and Distribution, Tk 1,891.71 crore under Pashchimanchal Gas Company Ltd, Tk 1,467.61 crore under Sundarbans Gas Company Ltd, and Tk 523.49 crore under Karnaphuli Gas Distribution Company Ltd.

As a result of these arrears, Petrobangla has fallen behind on its own payments, with officials confirming overdue bills of around US$15 million (Tk 183 crore) to LNG suppliers.

An EMRD official said the division has called a meeting today, chaired by Secretary Mohammed Saiful Islam, to address the crisis.

Earlier, the EMRD had considered suspending gas supply to power plants that fail to clear their dues. However, the move was shelved as uninterrupted electricity supply remains critical for consumers.

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