Bangladesh Seeks Alternative LNG Sources Amid Crisis

Bangladesh has been experiencing an acute gas crisis since late July due to a technical glitch at one of its liquefied natural gas (LNG) terminals in Cox's Bazar. The shortage of LNG has paralyzed households, industries, and transportation, making it difficult for people to cook food, restaurants struggling to serve customers, and industries halting production.

The crisis is not solely due to the technical glitch but also a result of disruptions to LNG supplies from Gulf countries like Qatar due to the US-Iran War. The blockade on the Strait of Hormuz means LNG vessels cannot pass through it and reach their destinations on time, resulting in a shortage in cargoes.

The high prices and reduced supply have pushed countries like Bangladesh to increase domestic LNG prices and reduce their supply. This has led to economic crises such as inflation, unemployment, and increased expenditure per household.

A recent report by Oil Price has revealed that the United States has emerged as a new LNG superpower, surpassing Qatar and Australia. In 2025, the US supplied around 1.1 trillion MMBtu of LNG, accounting for nearly 93% of the increased global demand.

However, the high prices of US LNG are a concern for Bangladesh, with a price tag almost triple that of Qatar's LNG at $28 per MMBtu compared to Qatar's $10 per MMBtu. This has prevented Bangladesh from reaching a long-term deal with Gunvor Group, a US-based LNG export company.