Domestic gas production has been steadily declining, prompting the government to increase LNG imports. However, the ongoing dollar crisis has made it difficult to settle import bills.
The US company Chevron, Bangladesh’s largest gas producer, is owed over USD 150 million, while outstanding LNG payments have surpassed USD 200 million.
As arrears continue to mount, foreign suppliers are becoming reluctant to deliver LNG shipments. Petrobangla officials believe securing loan assistance could help ease the situation.
Bangladesh previously produced 2.7 billion cubic feet of gas per day, but since 2018, output has been falling.
The previous Awami League government opted to meet the growing energy demand through LNG imports rather than prioritising new gas exploration and domestic production.
By last year, daily production had dropped to 2-2.1 billion cubic feet and has now fallen below 1.9 billion cubic feet, with 950 million cubic feet of LNG currently being supplied.
Rupantarita Prakritik Gas Company Limited (RPGCL) oversees LNG imports on behalf of Petrobangla. Bangladesh currently imports LNG under long-term agreements with Qatar’s RasGas and Oman Trading International. The first shipment from Qatar arrived in April 2018, followed by Oman in 2019.