Bangladesh Slams into Record-High LNG Prices Amid Global Crisis
Bangladesh is facing a severe gas crisis as it struggles to secure LNG supplies amid a global market squeeze triggered by the US-Israel war on Iran. The Cabinet Committee on Government Purchase approved two LNG cargoes in September at prices more than double the pre-war rate of $10-$12 per million British thermal units (MMBtu).
The latest purchases were for one cargo from Posco International Corporation at $24.625 per MMBtu and another from TotalEnergies Gas & Power Ltd, UK, at $24.25 per MMBtu. These prices are higher than recent purchases of $21-$23 per MMBtu.
The rising prices are adding to the pressure on Bangladesh's LNG import bill at a time when the country is increasingly dependent on spot purchases to compensate for disruptions to its long-term supplies. Each LNG cargo contains around 33.6 lakh MMBtu of gas, meaning the two latest shipments will each cost roughly Tk 1,000 crore at the approved prices.