Bangladesh Pays Billions More for Urgent Gas Amid Supply Struggles
Bangladesh faces a costly struggle for liquefied natural gas (LNG). The government pays billions of Taka more than expected. Ordered gas shipments are not arriving. Bangladesh must buy urgent supplies at higher spot market prices.
The government tried direct LNG purchases for August. None of the four expected cargoes arrived. This created a severe gas shortage.
Bangladesh now buys LNG through emergency tenders. These purchases are far more expensive. One cargo can cost at least 1.65 billion Taka extra. This burdens the national budget.
Petrobangla manages LNG imports. Officials report LNG prices are rising with every tender. Earlier tenders could have saved money.
Bangladesh’s gas production fell for nine years. So, Bangladesh began importing LNG in 2018. Two floating LNG terminals operate: Excelerate Energy (US) and Summit (local).
Excelerate terminal stopped after a July 21 fire. It restarted August 22. Both terminals can supply over one billion cubic feet daily. Recent LNG supply is about half of this capacity.
In August, nine LNG cargoes were expected. Only four arrived. Direct purchase cargoes did not reach Bangladesh. This uncertainty limits the nation’s gas supply.
Bangladesh’s daily gas demand is about 3.8 billion cubic feet. Maximum supply has been only 2.7 billion cubic feet. LNG normally provides 1.05 billion cubic feet of this supply.
Md Abdul Mannan, Petrobangla Chairman, said gas supply improved. Petrobangla works to maintain gas flow. The government seeks LNG through long-term and short-term contracts.
Global events make securing gas difficult. Shipments from Qatar and Oman almost stopped due to the Middle East war. European countries are buying large amounts of LNG for winter. This creates a global shortage, pushing prices higher.
Energy expert M Tamim suggests global prices might ease if war ends. He advised prioritizing gas supply. Fuel oil could power, freeing gas for industries. Bangladesh cannot afford high LNG prices. Crisis management needs political decisions.
