Within just eight months of the interim government taking office, Bangladesh has made remarkable progress in clearing its outstanding import bills for Liquefied Natural Gas (LNG). As of now, the dues have dropped to just $10 million—a dramatic reduction from the $665.76 million owed as of 5 August last year.
Petrobangla officials confirmed that the remaining $10 million, owed to OQT, is scheduled to be paid today. This follows a significant payment of $94.5 million yesterday, covering LNG import bills. Of this amount, $62.54 million was paid to four spot market LNG suppliers, while $32 million went to QatarEnergy LNG through the Jeddah-based International Islamic Trade Finance Corporation.
The four spot suppliers who received payments include Vitol Asia, which received $28 million; OQT, which was paid $22 million of its $32 million outstanding; Excelerate LP, which received $7.04 million; and Gunvor Singapore, which was paid $5.5 million. AKM Mizanur Rahman, Director (Finance) of Petrobangla, stated that after today’s payment to OQT, the organization will officially be debt-free in terms of LNG imports.
Prior to this, Petrobangla had already settled its outstanding payments with Chevron and two FSRU (Floating Storage Regasification Unit) operators. On 5 August 2024, Chevron was owed $237.55 million, which was fully cleared by 21 April. The dues of two long-term LNG suppliers, QatarEnergy LNG and Oman Trading Ltd, totaled $317.48 million on that same date and have since been completely paid off. At that time, Bangladesh also owed $110.73 million from spot market purchases, which now stands at just $10 million.
Officials from the Energy Division and Petrobangla explained that the delay in payments over the past three years was largely due to challenges stemming from the depletion of foreign currency reserves. This made it difficult to settle import bills on time. As a result, energy suppliers often charged higher premiums, anticipating delayed payments from Bangladesh.
Energy Adviser Muhammad Fouzul Kabir Khan attributed the dramatic turnaround to strong fiscal management. He explained that upon assuming office, the government prioritized clearing import dues to restore credibility with international suppliers and avoid mounting financial penalties. The adviser noted that by halting unnecessary projects within the energy sector and cutting back on wasteful expenditures—such as performance bonuses and allowances—they created the financial room necessary to settle these obligations.
Additionally, the government ensured sovereign guarantees for banks, enabling them to access the foreign currency needed to clear past dues. With the central bank relaxing its regulations and allowing banks to offer slightly higher exchange rates, remittance inflows increased, giving state-owned banks the liquidity they needed. This strategic shift allowed banks to bid more competitively for dollars and channel funds toward essential energy payments.
According to data from the central bank, remittances in FY24 totaled $23.92 billion, with state-owned banks receiving $3.4 billion, or 14.23% of the total. In contrast, during the first three months of FY25 following the interim government’s appointment, the banking sector received $7.03 billion in remittances, with state-owned banks accounting for $2.06 billion, or 29.27%.
A senior official from Janata Bank remarked that the issue had primarily been one of liquidity. “Once we were allowed to compete for dollars more freely, the backlog began to clear,” he said.
