United News of Bangladesh

The government will clear the arrears it owes to international energy suppliers within the next two months. "We are going to clear the arrears to international companies in the next two months," said Fouzul Kabir Khan, energy adviser of the interim government, in disclosing the government's plan in this regard. He mentioned that the Finance Ministry has assured him of providing all necessary support for making the payments. "We hope there will be a substantial breakthrough in clearing the arrear bills to international companies," he told UNB on Wednesday. Bangladesh has been struggling to pay international companies for its purchases of oil, gas, and electricity due to a shortage of foreign currency, as its reserves dropped to $22 billion in 2024 from $48 billion a year ago. According to official sources, approximately $700 million in overdue payments is owed to international oil companies (IOCs), including Chevron Bangladesh and QatarEnergy. If the overdue payments to power companies are included, the amount will exceed $2 billion, said an official at the Ministry of Power, Energy, and Mineral Resources, requesting anonymity as he is not officially authorised to speak on the issue. BRTA faces potential closure over performance issues, warns Adviser Fouzul Chevron Bangladesh, which supplies more than half the country's local gas from its three fields in the Sylhet region, is among the companies awaiting payment. Of the country’s total gas production of 2,790 million cubic feet per day (MMCFD), Chevron supplies about 1,109 MMCFD, while other gas fields contribute 770 MMCFD, and the government imports 910 MMCFD. Industry insiders said Chevron's overdue payments now amount to approximately $190 million, equivalent to about five months worth of payments. The state-owned Petrobangla pays about $40 million per month. Official sources said the government has already started paying arrear bills to the Indian Adani Group, which has an outstanding balance of $600 million. "We have been paying Adani Group about $100 million, including some portion of the arrear bills. Its regular bill is about $80 million per month," said another official of the Bangladesh Power Development Board (BPDB). Officials said that due to outstanding bills, several IOCs had threatened to halt local gas supply and LNG shipments from long-term contracts. Meanwhile, Finance Advisor Salehuddin Ahmed stated that the government is focused on ensuring uninterrupted LNG imports. Energy supply is very important for industries, power plants, and household consumers," he said after attending the meeting of the Advisors Council Committee on Government Purchase. The committee approved the import of an LNG cargo for the current month.