Bangladesh has recently taken significant steps to settle outstanding payments to various energy stakeholders, including power plant owners, LNG suppliers, and international oil companies. Under the mandate of State head Sheik Hasina, the nation will apportion roughly $960 million every month, beginning from July, to clear these obligations.
The Power Division of the Ministry of Power, Energy, and Mineral Resources (MPEMR) will receive $160 million per week to settle debts with power plant owners in order to guarantee a steady supply of natural gas. Also, $80 million every week will be designated to the Energy and Mineral Assets Division (EMRD) for installments to LNG providers and IOCs.
Bangladesh wants to settle its energy bills before the general election in January 2024 to avoid disruptions. To achieve this objective the nation seeks assistance from global lenders despite its financial difficulties. The national oil company Petrobangla has already started talking about getting a loan from the Islamic Trade Finance Corporation for about $500 million.
The government owed approximately $2.4 billion to private independent power producers (IPPs), $475 million to India for electricity imports, $350 million to Chevron and KrisEnergy for domestic gas, and $320 million to LNG suppliers, including contracted suppliers Qatargas and OQ Trading and spot suppliers.
To advance energy investigation and creation, the bureau board of trustees on financial undertakings as of late supported Bangladesh’s very first Brent unrefined connected model creation sharing agreement. This new model uses a profit-sharing structure allowing businesses to export natural gas after meeting domestic demand and offering investors enhanced output shares. The hydrocarbon price in the contract is linked to the same benchmark used to buy LNG. For the country to have a stable and long-lasting energy sector, these measures are necessary.