Clearing energy arrears tops interim govt’s success: Fouzul
Staff Reporter :
Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan on Tuesday said that settling long-pending dues to foreign energy suppliers was the interim government’s most significant accomplishment in the power and energy sector, as he marked his final working day in office.
Speaking at a press briefing at Bidyut Bhaban to review the sector’s performance, Fouzul said the interim administration inherited an energy sector weighed down by massive financial liabilities.
“Debt settlement was our foremost challenge. Soon after assuming office, we were informed that LNG imports would be halted unless outstanding payments were cleared.
Late-payment penalties were further aggravating the situation. Given these realities, we prioritised clearing all dues,” he said.
According to the Energy and Mineral Resources Division, Petrobangla’s unpaid bills to international oil and gas companies amounted to Tk 91.06 billion following the fall of the Awami League government on August 5, 2024.
From that point until April 2025, Petrobangla paid Tk 357 billion in energy bills, reducing outstanding liabilities to zero.
Alongside debt repayment, cost optimisation was another major focus, the adviser said. Lower premiums on both spot and long-term LNG procurements resulted in savings of around Tk 15 billion in the first six months.
Petrobangla has since signed new Master Sales and Purchase Agreements (MSPAs) with 24 companies, allowing LNG imports at significantly reduced premiums.
While the average premium stood at USD 1.28 per unit between July 2023 and August 2024, it has now declined to 38 cents.
“Although international gas index prices remain beyond our control, substantial savings were achieved by negotiating lower premiums,” Fouzul said, adding that avoidable expenditure on gas exploration drilling was also reduced.
He noted that the interim government repealed the Speedy Supply of Power and Energy (Special Provision) Act, 2010, and conducted drilling activities under the Public Procurement Act and Rules (PPR), ensuring greater transparency and competition.
Official estimates show considerable cost reductions in drilling five gas exploration wells in Bhola under BAPEX. Initial projections of Tk 15.55 billion were brought down to Tk 9.07 billion.
However, Fouzul acknowledged that gas discoveries from these wells did not meet expectations.
“The volume of gas found is insufficient compared to the current depletion rate. Exploration is inherently time-intensive—feasibility assessments alone can take more than six months.
The interim government simply lacked the time to complete many long-term initiatives,” he said.
He also said uncertainty over the government’s tenure hindered major investment inflows.
“Prospective investors repeatedly sought clarity on how long the government would remain in office.
As we could not provide a definitive answer, finalising large-scale investments was not possible.”
No decisions were taken on coal-based power projects, with those matters left for the elected government, he added.
Fouzul further said that document-related complications surrounding offshore bidding rounds initiated by the previous government had been resolved.
In outlining recommendations for the next administration, he stressed the need to proceed with offshore oil and gas exploration, establish land-based LNG terminals, and install a fourth Floating Storage and Regasification Unit (FSRU).
To mitigate the ongoing gas shortage, the energy division has proposed drilling 100 wells by 2028, which could add around 900 million cubic feet per day (mmcfd) of gas to the national supply.
On his final day in office, Fouzul said he would leave a written guideline for his successor. “I did not receive any roadmap when I assumed office.
The next minister should have clear guidance on where to begin and which direction to take,” he said.
Senior officials from power and energy agencies, ministry representatives, and stakeholders from both public and private sectors attended the briefing.