Bangladesh is intensifying its efforts to secure liquefied natural gas (LNG) supplies due to an ongoing energy crisis, exacerbated by disruptions in the Middle East and a surge in spot market prices. The country's state-owned Petrobangla has struggled to acquire LNG, with long-term suppliers suspending cargo deliveries, leading to a reliance on the volatile spot market. Petrobangla managed to secure only two spot LNG cargoes out of five recent attempts, as global suppliers quoted higher-than-expected prices.
Recent spot LNG purchases have been significantly more expensive. Petrobangla acquired cargoes from Vitol Asia Pte Ltd and BP Singapore Pte Ltd for $22.35 per million British thermal unit (MMBTu) and $21.66 per MMBTu, respectively, costing approximately $75 million and $73 million. These prices represent a 34 percent increase compared to a previous purchase from TotalEnergies Gas & Power Ltd for around $56 million. On August 9, 2026, the Cabinet Committee on Government Procurement approved an emergency purchase from Aramco Trading Singapore Private Limited at $21.55 per MMBTU, for delivery on August 11-12.
The energy crisis has been deepened by geopolitical tensions and operational issues. Long-term suppliers like QatarEnergy, OQ Trading of Oman, and Excelerate Energy have declared 'force majeure' and stopped deliveries since the Middle East conflict began. Additionally, Summit Oil & Shipping's deliveries are obstructed by contract cancellations from the previous interim government. If these long-term contracts were active, Bangladesh could purchase LNG at around $11 to $12 per MMBTu, significantly lower than current spot prices. The country has also faced restricted natural gas supplies following the abrupt closure of one of its two floating storage and regasification units (FSRUs) on July 21, causing overall natural gas supply to fall to 2,153 million cubic feet per day (mmcfd) from a pre-accident level of 2,642 mmcfd. Bangladesh is now looking to Southeast Asia, specifically Malaysia, for LNG using specialized cryogenic containers as an immediate solution.
