Petrobangla clears all external outstanding gas bills ahead of schedule

Petrobangla has paid all external outstanding LNG payments worth $3,739.95 million ahead of two months of its payment schedule fixed on 30 June.

Of the total amounts, the ousted Awami League government left $737.46 million arrears. After assuming the office, the interim government took steps to clear all external overdues as part of its plan to regularize the payment of energy bills.

"It has been possible to make the outstanding payments two months before the schedule due to the teamwork of all departments and other organizations concerned under the leadership of the adviser for the Ministry of Power, Energy and Mineral Resources," said Petrobangla in a statement.

Petrobangla has been able to pay all overdues before due date to the International Oil Company (IOC), long term Liquefied Natural Gas (LNG) agreement and LNG suppliers from spot market, two Floating Regasification Units (FSRUs) and International Islamic Trade Finance Corporation (ITFC).

Petrobangla has been able to pay all external overdues as its gas distribution, generation companies and consumers paid their gas bills in time.

The Petrobangla expected that with the payments of all overdues, Bangladesh's economy, energy sector and Petrobangla will get credit rating benefit and trust of LNG suppliers from spot markets will increase.

Besides, the Petrobangla will be able to avoid late payment interest, which was $54.57 million earlier, the statement said.