Bangladesh in race to secure emergency LNG supply amid Gulf turmoil

Bangladesh’s energy security is once again under strain as global turmoil in the Middle East disrupts the flow of liquefied natural gas (LNG), a fuel that has become indispensable to the country’s power sector.

In a bid to secure supply, the government has confirmed the purchase of seven LNG cargoes from the spot market since the beginning of the US-Israel war on Iran—at prices more than double those paid just months ago.

Since March 4, state-run Rupantarita Prakritik Gas Co Ltd (RPGCL) has floated three tenders to buy LNG cargoes on the spot market amid ongoing uncertainty over timely shipments from Qatar, as Iran continues to halt almost all shipping through the Strait of Hormuz.

Qatar is a long-term supplier of LNG to Bangladesh, and it ships a large amount of LNG through the Strait, which accounts for roughly a fifth of global LNG flows.

Bangladesh meets nearly 30 percent of its gas demand through imported LNG, while domestic output continues to fall short of the total requirement of about 2,650 mmcfd (million cubic feet per day), according to energy ministry data.

A top official of RPGCL said the South Asian nation receives delivery of 8–9 LNG cargoes monthly, and 5–6 cargoes come through the Strait, located between Oman and Iran, connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea.

The US-Israel war on Iran has disrupted the supply of oil, LNG, fertilizer, and sulphur, pushing up prices and creating a global scramble for securing energy and crop nutrients.

LNG prices have nearly doubled compared with the pre-war level of around $10–12 per MMBtu.

On March 2, QatarEnergy suspended its LNG production after an Iranian drone attack, straining the global LNG market. Qatar supplies 20 percent of the world’s LNG, reports Al Jazeera.

On March 17, the cabinet committee on government purchase approved the purchase of two spot LNG cargoes from Aramco Trading Singapore.

The first cargo will be priced at $20.96 per MMBtu, while the second cargo has been priced at $20.92 per MMBtu, according to the committee’s decision. The shipments are expected to arrive between April 15 and April 22.

Last week, the government decided to buy three cargoes of LNG on the spot market from South Korean and UK-based companies at more than double the price paid in December.

The three shipments are expected to arrive between April 5 and April 13.

UK-based TotalEnergies Gas & Power Ltd will supply one cargo at $21.58 per MMBtu, while South Korea-based Posco International Corporation will provide two cargoes at $20.76 per MMBtu.

Prior to this, state-run Petrobangla secured two emergency LNG cargoes for March deliveries from the spot market at nearly three times December prices after the beginning of the US-Israel war on Iran on February 28.

One cargo was purchased from US-based Gunvor at $28.28 per MMBtu, while the second shipment from Vitol cost $23.08 per MMBtu.

In December, the government had purchased LNG at $9.99 per MMBtu.

Bangladesh’s power sector has undergone a rapid transition over the past decade. Domestic gas production, the longtime backbone of the country’s electricity generation, has stagnated as major gas fields mature.

To bridge the supply gap, the government began importing LNG in 2018 through floating storage and regasification units (FSRUs) at Moheshkhali. Since then, LNG has become an increasingly important and structurally vital component of Bangladesh’s energy mix.

In 2025, Bangladesh spent approximately $3.88 billion to import 109 LNG cargoes, compared with $3.02 billion for 86 cargoes in 2024, reflecting both rising demand and prices, according to data from LightCastle Partners, a management consulting firm based in Bangladesh.

Qatar remains the country’s dominant supplier by a significant margin. In 2025, QatarEnergy received approximately $1.2 billion, the single largest supplier payment, delivering 40 contracted cargoes, while Oman’s OQ Trading supplied a further 16 under long-term agreements.

The remaining 48 cargoes were procured from the spot market, according to LightCastle data.

Because Qatar’s LNG exports originate in the Persian Gulf, most shipments to Bangladesh must transit the Strait of Hormuz.

As a result, the country’s energy supply chain is structurally exposed to disruptions in Gulf shipping routes.