Bangladesh Plans to Import 11 LNG Cargoes This May
Bangladesh will import 11 LNG cargoes in May to meet summer demand despite rising costs. Eight shipments will come from the volatile spot market as prices surge.
Bangladesh is set to import 11 cargoes of liquefied Natural Gas in May to meet the high demand of the peak summer season. According to an official from Petrobangla, the state-run energy firm, the imports include two spot cargoes that were recently awarded. Due to supply disruptions and force majeure declarations by major suppliers, only three of these cargoes will be delivered through long-term contracts, while eight must be purchased from the volatile spot market.
This has significantly increased our costs, with spot LNG prices nearly doubling import expenses, and as a result the government has been forced to increase subsidies by about 45 billion taka ($366.75 million) for March and April to manage the pressure.
The global energy market has faced significant pressure since the outbreak of conflict involving the United States, Israel, and Iran on February 28. These tensions have restricted shipping through the Strait of Hormuz, impacting exports from major suppliers like Qatar. Consequently, Asian LNG prices reached three-year highs and were recently up 63% since late February, trading at approximately $17 per million British thermal units (mmBtu).
Since the regional conflict began, the country has purchased 11 spot cargoes in total. The most recent tender for two shipments was awarded to TOTALENERGIES SE and Aramco Trading Singapore at prices of $19.825 and $19.194 per mmBtu, respectively. These cargoes are scheduled for delivery in early May.
Last year, the nation depended on Qatari supplies for more than half of its annual LNG imports. To address the current fiscal strain and ensure continued energy security, authorities in Dhaka have already sought $2 billion in external financing to support fuel and gas procurement.
