Bangladesh to Clear Energy Dues by Paying $960 Million Monthly

Bangladesh to Clear Energy Dues by Paying $960 Million Monthly

In order to settle outstanding payments to LNG suppliers, international oil companies (IOCs), and power plant owners both domestically and internationally, Bangladesh has announced that it will pay approximately $960 million per month beginning in July. The choice was made following a mandate from State leader Sheik Hasina. Of the aggregate sum paid every week, $160 million will go to the power division under the Service of Force, Energy and Mineral Assets (MPEMR) to clear obligations with power plant proprietors, while $80 million will be assigned to the Energy and Mineral Assets Division (EMRD) for installments to LNG providers and IOCs.

State-run Petrobangla Chairman Zanendra Nath Sarker emphasized the necessity of paying off debt to LNG suppliers and IOCs in order to guarantee uninterrupted natural gas supplies. In order to guarantee an uninterrupted supply of electricity, the MPEMR's Power Division has also requested approximately $5.921 billion for the fiscal years 2023-2024.

Regardless of monetary difficulties, Bangladesh means to settle its energy bills with the backing of worldwide loan specialists to keep away from disturbances in front of the following general political decision in January 2024. Petrobangla is in converses with get around $500 million from the Islamic Exchange Money Partnership. The government owed approximately $2.4 billion to private independent power producers, $475 million to India for electricity imports, $350 million to gas companies, and $320 million to LNG suppliers as of June.

Bangladesh is taking steps to attract investors from outside the country in addition to addressing outstanding payments. The bureau council on monetary undertakings as of late supported the country's very first Brent rough connected model creation sharing agreement. The new model depends on a benefit sharing recipe, offering improved yield offers to financial backers and permitting organizations to trade petroleum gas subsequent to satisfying homegrown need. The benchmark used to purchase LNG is linked to the price of hydrocarbons in the model contract. Deepwater investigation endeavors in Bangladesh have confronted misfortunes previously, yet the public authority stays focused on fostering its energy area.