Staff Reporter:
State-run Petrobangla has spent $3.27 billion between April and October 2025 to clear mounting import bills for liquefied natural gas (LNG), settle dues with international oil companies (IOCs), and repay loans to the Islamic Trade Finance Corporation (ITFC), according to official data.
Of the total expenditure, a hefty $2.69 billion—about 82percent —was used to pay for LNG imports, while another $292 million went toward subsidies covering system losses and subsidized gas sales to public entities. Petrobangla also reported losing around 174 million cubic feet per day (mmcfd) of gas, valued at over $333 million, due to pilferage and technical losses in the distribution network, further straining its finances.
“We have made timely payments to all suppliers since April,” said AKM Mizanur Rahman, Director (Finance) of Petrobangla. “As of October, payments totaling $3.27 billion have been made to LNG suppliers, IOCs, and ITFC. Regular payments are crucial to ensure uninterrupted gas supply amid falling domestic output and rising foreign obligations,” he added.
LNG dominates the outflow
During the seven-month period, Petrobangla imported 196,020 mmcf of LNG at a cost of $2.69 billion, while local IOCs received $449.21 million for 296,368,014 mmcf of domestically produced gas. The stark price difference underscores the challenge: imported LNG cost about $13,725 per mmcf, whereas locally sourced gas averaged only $1.52—making imports nearly 9,000 times costlier.
Another $130.2 million, or 4 percent of total payments, went to the ITFC. Energy experts warn that such heavy reliance on expensive imports is unsustainable for Bangladesh’s fiscal health.
The International Energy Agency (IEA), in its World Energy Outlook 2025, cautioned that rising LNG dependency could undermine the country’s energy security.
It projected that by 2035, combined LNG imports by Bangladesh and Pakistan will grow by 60 percent from 2024 levels to around 80 billion cubic metres.
Payment peaks and pressures
April was the most expensive month, with payments hitting $790.73 million, including $538 million for LNG, $219.42 million for IOCs, and $33.31 million for ITFC loans.
The spike was linked to clearing backlogged LNG bills to secure new shipments at lower spot prices. Payments declined in the following months dropping to $487.15m in May, $388.9m in June, and $353.7m in July as fewer LNG cargoes arrived and the government tried to limit dollar spending.
However, from August onward, payments began climbing again $404.75m in August, $419.9m in September, and $428.62m in October driven by resumed LNG imports and scheduled ITFC loan repayments.
Mounting strain on reserves
These sustained foreign payments have deepened pressure on Bangladesh’s external reserves, which hovered just above $20 billion during the period.
Energy imports remain one of the largest drains on the country’s dollar stockpile, forcing policymakers to prioritize fuel payments over domestic obligations.
“The energy import bill has become a major threat to the balance of payments,” said a senior Energy Division official, requesting anonymity.
“Without fresh gas discoveries or renewable alternatives, Bangladesh will remain highly vulnerable to global energy price shocks and currency volatility.”
Call for domestic exploration
Experts have reiterated the need to expand domestic gas exploration and improve energy efficiency. Dr. Badrul Imam, honorary professor at Dhaka University, said Bangladesh’s deltaic geography offers strong potential for hydrocarbon resources similar to Nigeria’s Niger Delta or Indonesia’s Mahakam Delta.
“Unfortunately, this potential remains largely untapped due to policy inaction,” he said.
Energy researchers stressed that enhancing local production, efficiency, and renewable diversification is vital to avoid future crises. “Unless Bangladesh reduces its LNG dependence,” one researcher warned, “Petrobangla’s dollar burden will only continue to grow.”
