Energy Crisis Hits Bangladesh and Pakistan as LNG Prices Soar

The global energy crisis is affecting two South Asian countries, Bangladesh and Pakistan. In Bangladesh, gas supplies are intermittent due to the crisis, causing power outages that leave food half-cooked. Parvin Akter, a resident of Dhaka, times her cooking according to the neighborhood's gas availability, sometimes waiting until midnight to cook dinner.

In Pakistan, the government has introduced a fuel subsidy program, but it is not working smoothly. Mohammad Musharraf, a Karachi resident, struggled to register his motorcycle for the subsidy, saying 'First of all, you have to register your vehicle. Then you have to register your mobile phone. How can an illiterate person survive if the conditions are so difficult?'

The energy crisis has led to a shortage in liquified natural gas (LNG) exports through the Strait of Hormuz and the Red Sea, driving Asian spot LNG prices back up to $30 per million British thermal units. Bangladesh, which relies on imported LNG for over 40% of its electricity, is particularly affected, with power Minister Iqbal Hasan Mahmud saying 'Industrial growth is slowing down, and production is going down.'

In Pakistan, the government is trying to prevent a repeat of early business closures that had to be enforced in April. The country needs up to 400 million cubic feet of gas a day through winter, but only two LNG cargoes are confirmed for September.