The government’s struggle to source much needed liquified natural gas (LNG) has intensified amid the skyrocketing of its prices as the contracted long-term LNG suppliers continued to suspend scheduled cargo deliveries.
The country could award only two spot LNG cargoes from the past five attempts after floating tenders and re-tenders to receive deliveries in similar dates as the listed global suppliers were quoting higher than expected prices, a senior official of state-run Petrobangla said.
To keep momentum in the country’s overall natural gas supplies, Petrobangla had to purchase the past spot LNG cargoes at US$22.35 per million British thermal unit (MMBTu) and $21.66 per MMBTu to Vitol Asia Pte Ltd and BP Singapore Pte Ltd for delivery over August 15-16 and August 2-3 windows respectively.
Petrobangla will have to pay around US$75 million and US$73 million respectively to Vitol Asia and BP Singapore Pte Ltd against the purchase of spot LNG cargoes, the official said.
The price is around 34 per cent higher compared to Petrobangla’s previous latest purchase of spot LNG cargo at around US$56 million from TotalEnergies Gas & Power Ltd for delivery over July 26-27 windows.
Volatility in global energy prices coupled with the downgraded rating of the country’s long-term sovereign credit rating by American rating agency -- S&P Global Ratings – to negative from stable might have been impacted in the latest spot LNG prices, sector insiders said.
If the long-term contracted LNG suppliers like QatarEnergy, OQ Trading of Oman, Excelerate Energy and Summit Oil & Shipping could supply LNG as per their contracted terms, Bangladesh could purchase LNG at around half the price it bought from spot markets, they said.
Petrobangla could purchase LNG from these long-term LNG suppliers at around US$11 to US$12 per MMBTu as per the sales and purchase agreement (SPA) from the suppliers concerned even in the current market price, if they could supply LNG cargoes, market insiders said.
The contracted long-term suppliers QatarEnergy, OQ Trading of Oman, Excelerate Energy have stopped LNG cargo deliveries announcing ‘force majeure,’ since the commencement of war in the Middle East.
While LNG cargo deliveries by Summit is obstructed following cancellation of contracts during the previous interim government.
Sources said, Summit Oil & Shipping has recently expressed its readiness to BNP government to supply LNG under previously negotiated arrangements at an estimated delivered price of around US$11.5 per MMBtu.
The company is currently pursuing legal remedies over the matter, insiders said.
It could save billions for Bangladesh if Summit’s LNG supply deal is activated, as the company did not declare force majeure, they said.
Until July 31, 2026 this year, the government has purchased 38 LNG cargoes from the spot market to mitigate potential shortages after supplies from the Middle East were restricted due to disruptions in the Strait of Hormuz.
Bangladesh had imported a total of 49 LNG cargoes from the spot market in 2025.
In addition to limited contractual supplies due to the Middle East war, Bangladesh is currently facing restricted natural gas supplies following the abrupt operations closure at one of its two FSRUs on July 21.
Bangladesh’s overall natural gas supply fell to around 2,153 million cubic feet per day (mmcfd) on July 31, with 500 mmcfd of re-gasified LNG, compared to the pre-accident level of 2,642 mmcfd, according to official Petrobangla data.