Bangladesh Gas Crisis Worsens as LNG Imports Fall Short

The government of Bangladesh is struggling to secure liquefied natural gas (LNG) amid a severe gas crisis. Despite tendering for LNG, none of the ordered cargoes have arrived, forcing the government to purchase them at higher prices in emergency tenders.

According to Petrobangla and RPGCL sources, the government invited tenders on August 17 for three LNG cargoes, with British Petroleum (BP) emerging as the lowest bidder for two of them. However, none of these cargoes have arrived, leaving a shortfall in gas supply.

The LNG terminal at Maheshkhali has been operating at reduced capacity since Excelerate's terminal was shut down after a fire on July 21. The government had earlier approved direct purchases of several cargoes to secure LNG at lower prices, but none of these have arrived either.

As a result, the government has been forced to purchase emergency cargoes at higher prices, increasing the cost of one cargo by at least Tk 1.65 billion. Officials involved in LNG imports said every USD 1 increase in the price of LNG per unit costs the government an additional Tk 413.3 million.