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.

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.