Bangladesh taps Aramco for high-priced LNG as supply risks mount

Bangladesh has moved to secure more emergency energy shipments amid a supply crunch, as a cabinet committee approved the purchase of two spot liquefied natural gas (LNG) cargoes from Aramco Trading Singapore.

The deals, approved by the Cabinet Committee on Government Purchase, come as Bangladesh grapples with force majeure declarations from its traditional long-term suppliers and a volatile spot market.

According to the approved proposal from the Rupantarita Prakritik Gas Company Ltd, the state-run entity responsible for LNG procurement, the first cargo will be priced at $20.96 per MMBtu, a finance ministry official said today. The second cargo has been priced at $20.92 per MMBtu. 

These prices represent a significant premium compared to the $10–$12 range seen earlier this year, reflecting a tightening global market fuelled by escalating Middle East tensions and disruptions in the Strait of Hormuz.