Bangladesh will pay approximately $960 million per month from July to clear outstanding payments to LNG suppliers, IOCs, and power plant owners.
The decision was made following a directive from Prime Minister Sheikh Hasina.
$160 million will go to the Power Division to clear debt with power plant owners, and $80 million will be allocated to the Energy and Mineral Resources Division for payments to LNG suppliers and IOCs.
Clearing debt is essential to ensure uninterrupted natural gas supplies and stabilize the energy sector.
The MPEMR's Power Division has requested around $5.921 billion for the fiscal year 2023-24 to ensure uninterrupted electricity supply.
Bangladesh aims to settle energy bills with global lenders to avoid disruptions before the upcoming general election in January 2024.
Petrobangla is in talks to borrow around $500 million from the Islamic Trade Finance Corporation to support the energy sector.
The government owes around $2.4 billion to private independent power producers, $475 million for electricity imports from India, $350 million to gas companies, and $320 million to LNG suppliers.
The new model offers enhanced output shares to investors and allows companies to export natural gas after meeting domestic demand.
Visit Allinfohere for more trending news