State energy giant Petrobangla is facing an unprecedented financial crisis and negative capital reserves, leading overseas suppliers to reject government-to-government (G2G) Liquefied Natural Gas (LNG) credit sales. Official sources in the Energy and Mineral Resources Division confirmed that recent high-level G2G LNG import negotiations with a foreign state supplier collapsed after the counterparty reviewed Petrobangla's balance sheet and refused deferred payment terms.
According to Petrobangla's financial reports, operating profits plummeted 73.38% in FY2024-25 to Tk 1,450 crore from Tk 5,447 crore in FY2023-24. Operational cash flow turned negative due to an astounding Tk 21,369 crore paid in cash for LNG operations during the fiscal year. To survive, the agency accumulated Tk 49.96 billion in long-term debt and Tk 26.78 billion in short-term bank loans, while piling up Tk 66.38 billion in unpaid tax and duty liabilities with the National Board of Revenue (NBR). Furthermore, public and industrial entities owe Petrobangla Tk 20,333 crore in outstanding gas bills (Power sector: Tk 16,135 crore; BCIC: Tk 1,820 crore; Industrial plants: Tk 2,378 crore).
Minister for Power, Energy and Mineral Resources Iqbal Hasan Mahmud Tuku MP highlighted that international LNG prices spiked from $10–$12/MMBtu to $30/MMBtu, making subsidized domestic retailing unsustainable. Petrobangla Chairman Abdul Mannan noted that Middle East conflict and transit bottlenecks through the Strait of Hormuz have halted regular G2G shipments from Qatar and Oman, forcing Bangladesh into the spot market where each cargo costs an additional Tk 600 crore. Meanwhile, domestic gas production has slumped to 1,585 MMCFD—with the flagship Bibiyana gas field dropping from 1,350 MMCFD to 736 MMCFD—meeting only 2,600 MMCFD of the country's 4,000 MMCFD daily demand.
— Daily Best News Desk • Fearless in the search for truth
Reported by Staff Reporter • Edited by the Daily Best News desk. Send corrections to [email protected].
