The interim government of Bangladesh has successfully paid off Tk 8,702 crore in debt that was left by the former Awami League government in the gas sector. This crucial step entailed clearing payments for gas purchases from international oil corporations (IOCs), importing LNG (liquefied natural gas), renting floating terminals, and paying interest on loans obtained from the International Islamic Trade Finance Corporation (ITFC).
According to Petrobangla, this return demonstrates the government’s commitment to maintaining economic discipline and energy security in the country.
Debt Repayment Since August
Since August 2024, Petrobangla, the government-owned oil and gas corporation, has paid a total of Tk 45,253 crore in the gas sector. Out of this amount, Tk 8,702 crore was the overdue debt that the interim government had to clear. The original deadline for repayment was June 2025, but Petrobangla cleared all the dues earlier than planned.
The debts were related to:
- Gas purchased from Chevron and Tullow (international oil companies),
- LNG supplies under long-term agreements with Qatar Energy and Oman’s OQ,
- Spot market LNG purchases from various suppliers,
- Rent for two floating storage and regasification units (FSRUs),
- Interest payments on ITFC loans.
With all of these payments made, Bangladesh now has no outstanding gas bills.
The Bangladesh Petroleum Corporation (BPC) assists
The Bangladesh Petroleum Corporation (BPC) provided financial assistance to Petrobangla in order to ease this repayment. The BPC provided a 2,000 crore loan, allowing Petrobangla to make payments on schedule.
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Loan from BPC Helped Repayment
Bangladesh Petroleum Corporation (BPC) provided a 2,000 crore loan to Petrobangla. This loan helped make the debt repayment easier and faster.
Positive influence on Bangladesh’s image
Officials at Petrobangla feel that settling all overdue bills will boost Bangladesh’s worldwide reputation. By paying vendors on time, the government can improve its credit rating with global agencies. It also boosts the confidence of LNG providers in the spot market.
A Responsible Step Towards Energy Security.
This significant repayment step by the interim government sends a clear statement about responsible economic management. In an era of global energy instability, repaying such a large debt ahead of time demonstrates the government’s commitment to stability and preparedness.
Conclusion
This timely repayment reflects the interim government’s accountability and financial preparedness. Experts believe it will improve Bangladesh’s standing in global energy markets and expand future trade and investment opportunities.
Source: Samakal
