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Bangladesh’s gas sector is showing signs of revival, with outstanding dues dropping sharply from $750 million on August 5, 2024, to just $240 million as of April 19, 2025.
This turnaround follows aggressive debt repayment efforts by the interim government, which took office amid a prolonged dollar crisis and mounting arrears that had disrupted gas imports and domestic supply. According to the Energy and Mineral Resources Division, more than $500 million in outstanding bills has been cleared in just the past month and a half. From April 7 to 16 alone, state-owned Petrobangla paid $180 million across six banking days.
The crisis dates back to the aftermath of the Russia-Ukraine war in early 2022, which triggered a dollar shortage in Bangladesh. LNG imports were suspended for seven months starting July 2022, causing nationwide gas shortages and prompting load-shedding. Although gas prices were hiked by 82% in January 2023, supply remained unstable.
The interim government has since prioritised restoring supply and supplier confidence by settling dues. US energy giant Chevron, which supplies 55% of Bangladesh’s domestic gas and was owed $240 million, has been fully paid. Since September, Petrobangla has been paying nearly double the regular monthly amount to reduce arrears. Chevron alone has received over $500 million in eight months.
LNG-related dues—$430 million in August—have now dropped below $230 million, including $114.7 million owed under long-term contracts with Qatar and Oman, and $110 million for spot market purchases. An additional $10 million is owed in terminal fees.
This progress has been possible due to coordinated efforts by Petrobangla, the Finance Ministry, Bangladesh Bank, and other agencies. The Finance Ministry boosted subsidies while the central bank ensured dollar availability. The Power Development Board also contributed, paying Tk 2,200 crore in March, helping clear 70% of gas-related dues in the power and fertiliser sectors.
Industry sources say the repayments have revived supplier confidence, improved competition in LNG tenders, and reduced import costs. However, experts caution against over-reliance on imported LNG and urge investment in domestic gas exploration.
Despite the progress, analysts argue that gas price hikes have burdened consumers without significantly improving the sector’s finances.
