Bangladesh Slashes LNG Import Debt from $665m to Just $10m in Less Than a Year
Bangladesh is on the brink of completely clearing its dues for liquefied natural gas (LNG) imports, marking a dramatic turnaround from the $665.76 million owed in August 2024. As of today, only $10 million remains outstanding, with Petrobangla confirming the final payment to OQT is scheduled for today.
According to Petrobangla, payments totaling $94.5 million were made yesterday to various energy suppliers. This included $32 million to QatarEnergy via the International Islamic Trade Finance Corporation and $62.54 million to four spot market suppliers. The breakdown shows Vitol Asia received $28 million, OQT $22 million (with $10 million still due), Excelerate LP $7.04 million, and Gunvor Singapore $5.5 million.
Petrobangla also previously cleared dues to Chevron and the two floating storage regasification unit (FSRU) operators. Chevron alone was owed $237.55 million in August, which was fully paid off by April. Debts to long-term suppliers QatarEnergy LNG and Oman Trading Ltd—totaling $317.48 million—were also fully cleared. Spot market dues, which once stood at $110.73 million, are now down to $10 million.
This remarkable progress comes just eight months into the tenure of the interim government. Officials say the payment backlog was largely due to foreign currency shortages and tight liquidity, which previously forced suppliers to impose high premiums and question Bangladesh’s ability to pay on time.
Energy Adviser Muhammad Fouzul Kabir Khan credited firm management, cost-cutting, and improved financial oversight for the turnaround. Projects deemed unnecessary were scrapped, and wasteful expenditures like performance bonuses were curtailed. These savings, combined with sovereign guarantees that helped banks secure foreign currency, allowed for timely payments.
State-owned banks, which process Petrobangla’s transactions, saw a surge in dollar liquidity thanks to policy changes by the central bank. These changes enabled banks to offer better exchange rates, encouraging a rise in remittance inflows. From August to October FY25, banks received $7.03 billion in remittances—$2.06 billion of which went to state-run banks, up from 14.23% to 29.27% of total inflows compared to FY24.
A senior Janata Bank official stated, “It was mostly a liquidity problem. Once we had the flexibility to bid for dollars, payments moved swiftly.”
With the remaining $10 million set to be cleared today, Petrobangla is poised to completely eliminate its LNG import debt—signaling restored confidence in the country’s energy payment commitments.