Bangladesh's long-term LNG supply plans have suffered another setback as US-based Excelerate Energy joined QatarEnergy in halving contracted deliveries for 2026, forcing the country to rely more heavily on costly spot purchases.
The US company has informed state-run Petrobangla that it will be unable to supply the remaining half of its contracted LNG cargoes this year.
As a result, it is expected to deliver only six cargoes over the next six months until December 2026, instead of the 12 cargoes stipulated under the contract, a senior Petrobangla official told The Financial Express on Wednesday.
Excelerate Energy supplied only two LNG cargoes this year before suspending deliveries.
The official said the company declared 'force majeure' in the first week of March following the outbreak of the Middle East conflict and has continued extending the declaration on a monthly basis, most recently until August.
A few weeks ago, QatarEnergy also informed Petrobangla that it would halve its LNG deliveries to Bangladesh in 2026 because of the regional conflict.
The reduction followed QatarEnergy's decision to suspend part of its LNG production on March 2 and declare 'force majeure'.
This year was due to mark the commencement of LNG deliveries under a 15-year supply agreement signed between Bangladesh and QatarEnergy in 2023.
At the time, QatarEnergy was supplying more than 3.5 million tonnes of LNG annually to Bangladesh.
Petrobangla estimates that around 20 LNG cargoes could be affected by QatarEnergy's decision. Under the agreement, the company was expected to supply around 40 cargoes during 2026.
A senior official of state-owned Rupantarita Prakritik Gas Company Ltd (RPGCL) said Excelerate Energy purchases LNG from QatarEnergy under a separate commercial arrangement for supply to Bangladesh.
"The disruption to QatarEnergy's production has also affected Excelerate Energy's ability to fulfil its contractual commitments," the official said.
Petrobangla has signed a 15-year agreement with Excelerate Energy to purchase between 0.85 million and 1.0 million tonnes per annum (MTPA) of LNG, beginning in January 2026.
Under the agreement, Excelerate Energy is scheduled to supply 0.85 MTPA in 2026 and 2027, with annual deliveries increasing to 1.0 MTPA from 2028 through 2040.
The RPGCL official said Bangladesh has increasingly turned to the spot LNG market since the outbreak of the Middle East conflict, as several long-term suppliers, including those from Qatar, Oman and the United States, declared 'force majeure' and suspended deliveries.
Bangladesh imported 49 spot LNG cargoes in 2025. By July this year, it had already imported 35 spot cargoes to offset disruptions in long-term supplies.
Azizjst@yahoo.com
