Petrobangla, the state-owned oil and gas corporation, has requested an urgent release of a minimum subsidy of Tk 32 billion from the Finance Division to settle unpaid Liquefied Natural Gas (LNG) import bills for September 2026.
An official letter issued by the Energy and Mineral Resources Division has requested the Finance Division to allocate the amount in favour of the state-owned agency to settle invoices for LNG cargoes delivered between September 16 and 30.
It says the failure to make timely payments risks triggering severe interest penalties, supplier distrust, and potential disruptions to nationwide gas supplies.
The payment request comes amid a widening gap between LNG import costs and revenue from domestic sales, leaving the government increasingly dependent on subsidies to meet import bills.
The government imported nine LNG cargoes in September at a total cost of Tk 94.57 billion, while revenue from LNG sales stood at Tk 32.08 billion, leaving a deficit of Tk 62.48 billion.
It estimated that Tk 62 billion in subsidies would be required to cover the month's shortfall.
Petrobangla had earlier sought Tk 31 billion to pay for cargoes delivered between September 1 and 15.
The Finance Division released Tk 30 billion, which has already been used to settle the relevant invoices, leaving Tk 1.0 billion unpaid.
With another Tk 31 billion required for the second-half shipments, the outstanding Tk 1.0 billion from the first half has raised the immediate funding requirement to Tk 32 billion.
Spot-market cargoes must be paid for within 15 to 17 days of delivery.
For the September 16-30 shipments, that puts the payment window at between October 1 and 15, according to Petrobangla.
Any delay could expose Bangladesh to late payment charges at rates of SOFR plus 4 to 5 percentage points, compounded quarterly, further increasing the cost of LNG imports.
The Energy and Mineral Resources Division also cautioned that delayed payments could undermine suppliers' confidence in Bangladesh as a reliable buyer, potentially disrupting shipments and jeopardising the uninterrupted supply of gas.
Moreover, companies that have signed Master LNG Sale and Purchase Agreements (MSPAs) with Bangladesh could become less competitive in spot-market tenders or demand higher prices to compensate for payment risks.
The Energy and Mineral Resources Division requested the Finance Division to release the required funds to Petrobangla promptly, citing the need to safeguard national energy security and ensure an uninterrupted LNG supply.
The Finance Division had already made allocations for the fund as it is an important issue and the government was very sincere about it, an official informed.
He added that late payment charges of SOFR+4 per cent to SOFR+5 per cent, compounded quarterly, would push the deficit higher up.
Financial Mirror/AH
