Petrobangla Eases Rules for New Spot LNG Suppliers Amid Price Surge

Petrobangla has relaxed its requirements for new spot liquefied natural gas (LNG) suppliers in an effort to attract more players amid severe gas shortages and rising global LNG prices. The state-run corporation will now allow companies with just one successfully completed LNG supply contract and $50 million in financial capacity to seek enlistment.

The move comes as Bangladesh faces a difficult time in its LNG procurement, with disruptions at its two floating LNG terminals, cargo delivery problems, and a global supply squeeze pushing average gas supply to 2,235 million cubic feet per day (mmcfd) in August - the lowest August supply in a decade. Official demand was around 3,860 mmcfd.

The government had to make emergency direct purchases of LNG as industries struggled with low gas pressure and power generation was hit by fuel shortages. Spot LNG prices have also risen sharply, with Bangladesh last week approving a cargo at more than $28 per million British thermal units (MMBtu), the highest price since 2022.