Qatar's LNG Supply Suspension Hits Bangladesh Amid Winter Demand Surge
QatarEnergy has suspended its liquefied natural gas (LNG) supply to Bangladesh until November due to disruptions caused by the closure of the Strait of Hormuz. This is not a new development, as the company had previously announced force majeure in April due to the US-Iran war. The suspension was initially set to last until September but has been extended several times.
The situation is particularly concerning for Bangladesh, which relies heavily on imported LNG to address gas shortages in power generation and industrial operations. With winter approaching, gas demand in Europe will increase, leading to higher prices in the international market. This may make it difficult for Bangladesh to secure LNG even at higher prices, as countries with greater purchasing power will prioritize securing their own supplies.
According to Reuters, Qatar's LNG exports had fallen by 96% by the end of August, with only 18 cargoes exported between January and August compared to 509 during the same period last year. This has led to increased competition for LNG between buyers in Europe and Asia, driving up prices.
Italy's Edison company has been affected by QatarEnergy's decision, with six more LNG cargoes cancelled. This brings the total number of cancelled deliveries to 35. Bangladesh may need to explore alternative suppliers if the supply disruptions continue beyond November.