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Petrobangla seeks Tk71.81 billion loan to foot LNG import bills
State-owned Petrobangla, the oil gas and mineral corporation of Bangladesh, has sought a loan of Tk71.81 billion from the finance ministry to meet the cost of liquefied natural gas (LNG) import until next September.
The cash-strapped corporation wrote a letter in the last week of May, mentioning that its loss amounted to Tk254.80 billion from 2018 to May this year and it now needs the loan to foot LNG import bills. The amount was over Tk80 billion in just one year from May 2022 because of the surge in global LNG spot price.
A finance ministry official told The Business Standard, on condition of anonymity, that an inter-ministerial meeting would be convened to discuss Petrobangla’s loan proposal.
“Before that, a comprehensive analysis will be conducted on Petrobangla’s overall income and expenditure data, including the status of the gas development fund, the company’s accumulated liabilities, and operating costs,” the official said, adding that a decision on the loan approval will require “some time.”
According to Petrobangla sources, the corporation has also spent almost the entire amount deposited in the Gas Development Fund to meet the cost of LNG import due to the rise in prices in the international market. Out of the total Tk190 billion from the fund, only Tk15 billion is left now.
The government has provided a subsidy of Tk220 billion to Petrobangla since 2018. The budget for the last financial year included an allocation of about Tk 60 billion for LNG. It has been fully paid, added the officials.
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