Bangladesh Pays Record Prices for LNG Amid Global Market Squeeze

The Bangladesh government has approved the purchase of two LNG cargoes at prices more than double what they were before the US-Israel war on Iran began in February. The Cabinet Committee on Government Purchase agreed to pay $24.625 per million British thermal units (MMBtu) for one cargo from Posco International Corporation and $24.25 per MMBtu for another from TotalEnergies Gas & Power Ltd.

These prices are a significant jump from the recent purchases, with a cargo from Aramco Trading Singapore approved earlier this month costing $21.55/MMBtu and two cargoes from BP Singapore priced at $21.878 and $21.778/MMBtu last week.

The rising prices will add to Bangladesh's LNG import bill, which is already under pressure due to the country's increasing dependence on spot purchases to compensate for disruptions to its long-term supplies.