Petrobangla is grappling with a financial crisis as state-owned power plants and fertilizer factories default on gas bills, accumulating a total of Tk 130 billion (US$1.18 billion) in overdue payments. These defaults have left Petrobangla unable to settle bills with overseas LNG suppliers and domestic gas-producing multinationals.
The power plants and fertilizer factories have refrained from paying bills for the past nine months, protesting against a tariff hike. While privately owned gas-fired power plants and industries are complying with the increased rates, the defaults have created challenges for Petrobangla in managing its financial obligations, leading the energy corporation to consider borrowing around US$500 million from the Islamic Trade Finance Corporation to address pending payments to IOCs and LNG suppliers.