Bangladesh Bites Bullet on LNG Prices Amid Geopolitical Tensions
Bangladesh is facing its worst energy crisis in years due to geopolitical supply shocks and domestic infrastructure failures. The country has been forced to pay near-peak prices for liquefied natural gas (LNG), with BP Singapore charging over $28 per unit, more than double the pre-war rate of $12.
The sharp rise in import costs is attributed to disruptions to Bangladesh's long-term supply arrangements. Qatar, its primary supplier, declared force majeure after Iranian missile strikes hit its Ras Laffan export facility, while heightened military risks have choked shipping through the Strait of Hormuz.
Technical breakdowns at home have also exacerbated the crisis. A fire at Excelerate Energy's Floating Storage and Regasification Unit (FSRU) in Moheshkhali knocked out around 450 million cubic feet per day (mmcfd) of regasification capacity, leaving domestic gas supply depressed at 2,315 mmcfd, short of the nation's 2,650 mmcfd demand.
As a result, Bangladesh is facing rolling power outages and forced cutbacks across fertiliser plants and industrial hubs. The fiscal footprint of the crisis is mounting rapidly, with energy subsidies projected to balloon to 2.8 percent of GDP in FY26, reaching total outlays of $2.5 billion to $4.8 billion.