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Bangladesh will cease importing liquefied natural gas (LNG) from the spot market for the remainder of 2025, as the government plans to meet all remaining demand through long-term supply contracts.
The country has already purchased its final spot cargo for delivery in late December, a senior Petrobangla official told The Financial Express on Wednesday.
The decision follows a year of unusually high spot-market purchases, around four dozen cargoes, amid volatile global prices and rising domestic consumption.
With several new long-term agreements taking effect from 2026, the official said, reliance on the spot market is set to shrink significantly.
Petrobangla officials said the shift will stabilise supply, strengthen price predictability, and support the country's fast-growing LNG demand over the next two decades.
Imports under long-term sales and purchase agreements (SPAs) are expected to rise by more than 53 per cent in 2026, reaching 86 cargoes compared with 56 this year.
The state-run company expects the additional LNG volumes to come from newly signed SPAs with QatarEnergy, Oman's OQ Trading, and US-based Excelerate Energy, alongside existing supply arrangements. Spot purchases, meanwhile, are projected to fall by more than 38 per cent, reducing exposure to price volatility.
The additional cargoes will be sourced from the new suppliers with whom Petrobangla signed SPAs in 2023.
QatarEnergy has consistently supplied 40 cargoes annually in recent years, while Oman's OQ Trading International has provided 16 cargoes under existing agreements.
Petrobangla has sourced the remaining volumes from spot and short-term suppliers.
Officials noted that Petrobangla signed four long-term LNG contracts between June 2023 and June 2024 to meet rising demand for re-gasified LNG through to 2041.
These agreements were executed under the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010 (Amended 2021), which permits direct negotiations rather than competitive tenders, an Energy and Mineral Resources Division (EMRD) official said.
Under the contracts, LNG prices range between 13.20 and 13.50 per cent of the three-month average Brent crude benchmark, plus a constant of 0.40-0.50 US cents per million British thermal unit (MMBtu).
From January 2026, Petrobangla will begin lifting LNG from Excelerate Energy under a November 2023 SPA covering up to 1.0 million tonnes per annum (MTPA) for 15 years, priced at around 13.35 per cent of Brent plus 0.30 US cents per MMBtu.
It will also begin importing from QatarEnergy under a June 2023 agreement for up to 1.8 MTPA over 15 years, priced at around 13.20 per cent of Brent.
In addition, Oman's OQ Trading, formerly Oman Trading International, will supply up to 1.5 MTPA for 10 years beginning in 2026 under a June 2023 contract, priced at roughly 13.35 per cent of Brent plus 0.50 US cents per MMBtu.
Petrobangla, however, cancelled an SPA with Summit Oil & Shipping Company Ltd (SOSCL) signed in June 2024, which would have delivered 1.5 MTPA for 15 years at 13.35 per cent of Brent plus 0.29 US cents per MMBtu.
Currently, Bangladesh buys LNG from Qatargas at 12.65 per cent of Brent plus 0.40 US cents per MMBtu, and from OQ Trading at 11.90 per cent plus 0.50 US cents.
Official data show that Bangladesh's LNG re-gasification capacity is nearing saturation, reaching around 1,053 million cubic feet per day (mmcfd).
The country's two floating storage and regasification units (FSRUs) are operating at about 95 per cent of their combined 1,100 mmcfd capacity.
The FSRU operated by Excelerate Energy has a capacity of 600 mmcfd, while Summit Group's unit can process 500 mmcfd. Full utilisation of both FSRUs would allow Bangladesh to import up to 115 cargoes annually, the official said. In 2025, Petrobangla imported a record 108 cargoes, the highest in a single year, and plans to add seven more to meet rising demand from state-run fertiliser factories.
Since early June, Bangladesh has been re-gasifying more than 1,000 mmcfd of LNG after securing six additional cargoes to bolster supplies to industries.
Azizjst@yahoo.com