Omani state-owned company OQT has rejected a proposal to advance its October or November LNG cargo delivery to 19-20 September as Bangladesh is facing a shortfall of over 1,400 mmcfd of natural gas.
According to a top official from Petrobangla, Bangladesh’s unpaid natural gas bills to various suppliers have accumulated to over $600 million.
Among these, the outstanding debt to OQT amounts to $180,928,837.43 (Tk 2.15 billion), as outlined in a letter from OQT’s Chief Executive Officer, Walil Al Jamali, to Petrobangla’s chairman on 5 September 2024.
“We regret to inform you that we are unable to accommodate your request until all overdue amounts are fully settled. Any potential changes to the annual development programme may only be reviewed once full payment is received,” Al Jamali stated.
He further clarified that $115,842,083.07 of the total unpaid amount is overdue, and urged Petrobangla to settle these outstanding payments immediately.
Despite the substantial unpaid dues, Qatar’s state-owned Ras Laffan Liquefied Natural Gas Company Ltd. (Qatargas), however, has agreed to reschedule one of its LNG delivery this month, Petrobangla Chairman Zanendra Nath Sarker revealed.
Originally, this cargo was scheduled for delivery in December 2024.
However, the Petrobangla chairman did not disclose the specific amount owed to Qatargas, only stating that overall outstanding bills amount to $600 million.
Bangladesh has been importing between 1 and 1.5 million tonnes of LNG from Oman through a government-to-government agreement. An additional 1 million tonnes will be procured under a 10-year deal.
Since 2018, Bangladesh has also been importing between 1.82 and 2.5 million tonnes of LNG annually from Qatargas under a deal signed in 2017. A new agreement with Qatargas was recently signed, which will see Qatar supplying an additional 1.5 million tonnes of LNG per year from 2026 to 2040. Under this agreement, Bangladesh will receive 12 LNG cargoes in 2026 and 24 in 2027.
During a meeting with executive committee members of the Forum for Energy Reporters Bangladesh (FERB) on Wednesday, Muhammad Fouzul Kabir Khan, the Adviser for Power, Energy, Rail, Road Transport, and Bridges, mentioned that the World Bank has agreed to provide $1 billion in budgetary support to help settle Bangladesh’s overdue bills in the power and energy sectors.
Currently, Bangladesh produces around 2,632 million cubic feet per day (mmcfd) of natural gas, against a demand of 4,000 mmcfd, resulting in a shortfall of around 1,368 mmcfd. Of the total production, 617 mmcfd is imported, while 2,015 mmcfd is sourced from local gas fields.
As a result, most sectors in the country have been affected by the natural gas supply shortfall.
