Bangladesh is facing a deepening energy challenge as natural gas shortages disrupt industrial production, electricity generation, and transportation networks. The crisis is increasing costs for businesses and placing additional strain on an economy that has become increasingly reliant on imported energy supplies. Manufacturers are reporting operational difficulties, while policymakers search for solutions to stabilize fuel availability and support economic growth. As demand rises and supply constraints persist, concerns are growing about the long-term impact on exports, investment, and industrial competitiveness. How serious is Bangladesh's energy crunch, and what could it mean for the country's economic future?

Bangladesh faces mounting energy crisis

Europe and much of Asia are preparing for a potential winter energy crisis as the ongoing Iran conflict continues to disrupt global natural gas supplies. Analysts warn that reduced LNG availability, damage to Qatar's export infrastructure, and disruptions in the Strait of Hormuz could tighten global energy markets just months before peak heating demand. According to energy consultancy Wood Mackenzie, Europe's gas storage levels remain well below the target needed for winter, while Asian importers face growing competition for limited LNG cargoes. European natural gas prices have already surged, raising concerns over higher household energy bills, industrial costs, and possible gas rationing if supply conditions worsen.

Iran War Triggers Global Energy Crisis | Europe & Asia Face Winter Gas Shortage | LNG Supply Crunch 

<p>Bangladesh is set to clear its outstanding payments to LNG suppliers, international oil companies (IOCs), and power plant owners by paying approximately $960 million per month starting from July. The decision was made following a directive from Prime Minister Sheikh Hasina ahead of the scheduled elections in the country next year.&nbsp;</p>

<h2><strong>Bangladesh power bill row: What is payment structure like?</strong></h2>

<p>Each week, $160 million will be allocated to the Power Division under the Ministry of Power, Energy and Mineral Resources (MPEMR) to settle debts with power plant owners, while $80 million will go to the Energy and Mineral Resources Division (EMRD) for payments to LNG suppliers and IOCs.</p>

<p><strong>Also watch |&nbsp;Bangladesh to see more power cuts as demand soars</strong></p>

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<p>To ensure uninterrupted natural gas supplies, Petrobangla Chairman Zanendra Nath Sarker highlighted the need to clear debts to LNG suppliers and IOCs. The MPEMR's Power Division has also requested around $5.921 billion for the fiscal year 2023-24 to ensure continuous electricity supply.</p>

<h2><strong>Bangladesh seeks support from international lenders</strong></h2>

<p>Despite facing financial challenges, Bangladesh aims to settle its energy bills with the support of global lenders to avoid disruptions ahead of the next general election in January 2024.&nbsp;</p>

<p>Petrobangla is currently in discussions to borrow around $500 million from the Islamic Trade Finance Corporation.&nbsp;</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/world/indias-amara-raja-group-secures-130-million-solar-power-project-in-bangladesh-609215">India's Amara Raja Group secures $130 million solar power project in Bangladesh</a></strong></p>

<p>As of June, the government owed approximately $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.</p>

<p>In addition to addressing outstanding payments, Bangladesh is taking measures to attract foreign investors.&nbsp;</p>

<p>The cabinet committee on economic affairs recently approved the country's first-ever Brent crude-linked model production sharing contract.&nbsp;</p>

<p>This new model, based on a profit-sharing formula, offers enhanced output shares to investors and allows companies to export natural gas after meeting domestic demand. The hydrocarbon price in the model contract is linked to the same benchmark used to purchase LNG.&nbsp;</p>

<p>Despite past setbacks in deep water exploration efforts, Prime Minister Sheikh Hasina’s government remains focused to achieve breakthroughs towards developing the energy sector.</p>

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Bangladesh is set to clear its outstanding payments to LNG suppliers, international oil companies (IOCs), and power plant owners by paying approximately $960 million per month starting from July.

Bangladesh is set to clear its outstanding payments to LNG suppliers, international oil companies (IOCs), and power plant owners by paying approximately $960 million per month starting from July. The decision was made following a directive from Prime Minister Sheikh Hasina ahead of the scheduled elections in the country next year. Bangladesh power bill row: What is payment structure like? Each week, $160 million will be allocated to the Power Division under the Ministry of Power, Energy and Mineral Resources (MPEMR) to settle debts with power plant owners, while $80 million will go to the Energy and Mineral Resources Division (EMRD) for payments to LNG suppliers and IOCs. Also watch | Bangladesh to see more power cuts as demand soars × To ensure uninterrupted natural gas supplies, Petrobangla Chairman Zanendra Nath Sarker highlighted the need to clear debts to LNG suppliers and IOCs. The MPEMR's Power Division has also requested around $5.921 billion for the fiscal year 2023-24 to ensure continuous electricity supply. Bangladesh seeks support from international lenders Despite facing financial challenges, Bangladesh aims to settle its energy bills with the support of global lenders to avoid disruptions ahead of the next general election in January 2024. Petrobangla is currently in discussions to borrow around $500 million from the Islamic Trade Finance Corporation. Also read | India's Amara Raja Group secures $130 million solar power project in Bangladesh As of June, the government owed approximately $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. In addition to addressing outstanding payments, Bangladesh is taking measures to attract foreign investors. The cabinet committee on economic affairs recently approved the country's first-ever Brent crude-linked model production sharing contract. This new model, based on a profit-sharing formula, offers enhanced output shares to investors and allows companies to export natural gas after meeting domestic demand. The hydrocarbon price in the model contract is linked to the same benchmark used to purchase LNG. Despite past setbacks in deep water exploration efforts, Prime Minister Sheikh Hasina’s government remains focused to achieve breakthroughs towards developing the energy sector. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Bangladesh to settle hundreds of millions in power bills ahead of national elections