Bangladesh Gas Supply Squeezed by Gulf Crisis
The ongoing Gulf crisis is causing a squeeze on energy supply in Bangladesh, particularly when it comes to liquefied natural gas (LNG).
The country's two floating terminals off Moheshkhali have recovered to about 92% of their combined capacity, processing over 1,015 million cubic feet per day. However, the total national gas supply still falls short of demand, standing at only 2,624 million cubic feet per day against an estimated 3,800.
The shortage is attributed to a combination of factors, including disruptions in LNG supplies and shipping through the Strait of Hormuz due to the ongoing conflict. This has led to a sharp increase in spot prices, with Bangladesh paying around $28-$30 per million British thermal units (MMBtu) for imported LNG.
The government is trying to manage the immediate shortage by buying LNG from the spot market and exploring alternative suppliers. However, diversifying sources may not alleviate the pressure on affordability, as wealthier buyers can absorb higher prices more easily.