Bangladesh secures spot LNG cargoes as Mideast conflict lifts costs

Dhaka: Bangladesh has bought three liquefied natural ​gas (LNG) cargoes on the ​spot market at higher prices, as it scrambles to ​steady supplies amid disruptions from the escalating Iran-Israel conflict, energy officials said.

State-run Petrobangla has increasingly turned to the volatile spot market to bridge the supply gap, said ‌energy officials in ⁠the South ⁠Asian nation, after some suppliers were forced to halt shipments.

"If the disruption drags ​on, we'll have to lean more on costly spot LNG, which will add to ​our import burden and tighten supplies for power and industry," an energy ministry official said, speaking on condition of anonymity.


The nation of 175 ​million relies on imports for roughly 95% of ⁠its energy ‌needs. It has imposed fuel rationing for ​vehicles, curbed diesel ​sales and shut universities as the Iran war disrupts ⁠Middle East oil exports.

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TotalEnergies will supply one cargo priced ​at $21.58 per million British thermal units (mmBtu) for delivery on ​April 5 to 6, while two from Posco International Corp priced at $20.76 per mmBtu each are set for delivery on April 9 to 10 and April 12 to 13.

The purchases come after QatarEnergy suspended LNG deliveries to Bangladesh under a long-term contract, citing such disruptions.

Petrobangla also ‌arranged additional spot LNG cargoes this month to bridge the shortfall.

One shipment from commodity trader Gunvor, priced at $28.28 per ​mmBtu, is ​expected to arrive ⁠from March 15 to 16, while another cargo from Vitol, priced at $23.08 per mmBtu, is scheduled for March 18 to 19.

The latest purchases are ​a sharp increase over Bangladesh's earlier LNG procurement this year. In January, it secured spot cargoes at about $10 per mmBtu, reflecting rapid price escalation as tension surged.

The government's gas rationing effort has forced the shutdown of four fertiliser plants, to prioritise power generation and other key areas.