Bangladesh Struggles with Rising LNG Prices Amid Global Supply Crunch
The Bangladesh government is struggling to secure liquefied natural gas (LNG) due to rising prices and supply chain disruptions. Despite tendering for LNG, none of the direct procurement method (DPM) cargoes have arrived on schedule.
With LNG in short supply, the government has resorted to buying emergency cargoes at higher prices. Petrobangla oversees LNG imports with approval from the Energy Division, while its subsidiary Rupantarita Prakritik Gas Company Ltd (RPGCL) is responsible for importing the fuel.
The crisis has led to a shortfall in gas supply, forcing the government to divert more gas to industries and increase power generation using fuel oil. According to Petrobangla, daily gas demand is around 3.8 billion cubic feet, while the maximum supply has been about 2.7 billion cubic feet.
The situation is complicated by global energy market volatility, with European countries building up LNG stocks ahead of winter and a shortage of LNG cargoes worldwide. Energy expert M Tamim said that Bangladesh cannot afford to buy LNG at current high prices and urged the government to prioritize gas supply.