Bangladesh’s government is currently grappling with payment difficulties to both long-term and spot LNG suppliers, raising concerns about potential supply disruptions. Petrobangla, the state-run company, has been unable to make regular payments to its two long-term suppliers, Qatargas and Oman Trading International (OTI), now known as OQ, under their LNG contracts. Additionally, import bills to spot LNG suppliers, including Vitol Asia and TotalEnergies, remain unpaid. Sources indicate that Petrobangla also owes approximately $100 million to Qatargas, $45 million to OQ, $40 million to Vitol Asia, and $20 million to TotalEnergies. Payments for LNG re-gasification services to floating LNG terminal owners have allegedly defaulted as well.
To address the crisis and settle outstanding dues by September 2023, Petrobangla’s Chairman has requested financial assistance of Tk 71.81 billion ($840 million) from the Ministry of Power, Energy, and Mineral Resources. The company has also sought support from the Bangladesh Bank to clear invoices by providing US dollars to commercial banks involved in LNG purchases. The currency crisis, stemming from global economic turmoil caused by the Russia-Ukraine conflict, has affected the country’s repayment capacity.
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