LNG purchase from spot market amid ME crisis
Staff Reporter :
Prime Minister Tarique Rahman has instructed authorities to procure the necessary liquefied natural gas (LNG) from the spot market to prevent a shortfall amid the ongoing war between the United States and Iran.
The decision came after QatarEnergy suspended LNG production following military attacks on its facilities in Ras Laffan and Mesaieed Industrial Cities in Qatar
According to sources, the Energy and Mineral Resources Division has already moved to secure at least four LNG cargoes from the spot market for March, in line with the PM’s directive.
The Prime Minister was briefed on the country’s energy situation in both the public and private sectors, including potential supply risks arising from halted vessel movement through the Strait of Hormuz and production stoppages by QatarEnergy.
While Oman has confirmed delivery of two LNG cargoes under its long-term agreement and pledged an additional two, a minimum of eight cargoes is required to meet the country’s monthly demand.
A senior official from the Energy and Mineral Resources Division, speaking on condition of anonymity, told that the PM has also instructed Bangladesh Bank to ensure immediate payments for fuel imports and provide necessary foreign currency for private-sector LPG imports.
Petrobangla is set to float tenders to import two LNG cargoes from the spot market immediately, with tenders for the remaining two to follow. Previously, the government had not planned to purchase LNG from the spot market this month.
Currently, Bangladesh supplies 2,600–2,900 million cubic feet per day (mmcfd) of gas, with 900–980 mmcfd coming from imported LNG.
Annually, the country imports 110–115 LNG cargoes, of which 60–70 are from long-term contracts with Qatar and Oman, while the remainder are sourced from the spot market.
As of today, Petrobangla reports gas supply at 2,662 mmcfd, including 952 mmcfd from imported LNG.
On fuel reserves, Bangladesh Petroleum Corporation (BPC) has 201,610 tonnes of diesel (sufficient for 14 days), 21,705 tonnes of petrol, and 34,133 tonnes of octane in stock.
Padma Oil maintains jet fuel reserves adequate for 20 days, though demand is currently lower due to reduced flight operations.
Discussions are ongoing with alternative suppliers, including Malaysia, China, and Saudi Arabia, for refined fuel imports.
The government has also contacted India and Saudi Aramco to ensure continued fuel supplies.
Private-sector LPG importers have reported that letters of credit opened in February are expected to bring in 194,000 tonnes of LPG in March.
However, some shipments may be delayed due to the closure of the Strait of Hormuz, prompting officials to advise importers to explore alternative sources.
