QatarEnergy says 50pc LNG cut for Bangladesh

Bangladesh’s largest liquefied natural gas (LNG) supplier, QatarEnergy, has warned that it may deliver only half of its contracted LNG cargoes in 2026, raising concerns over the country’s long-term energy security despite the reopening of the Strait of Hormuz.

The state-owned Qatari energy company informed Rupantarita Prakritik Gas Company Limited (RPGCL), a subsidiary of Petrobangla, earlier this month that it could supply only 50 per cent of its scheduled cargoes next year.

It also indicated that reduced deliveries could continue for the next three to five years, subject to the recovery of production following disruptions caused by the recent Middle East conflict.

The reduction would cut Bangladesh’s scheduled LNG imports from QatarEnergy from 40 cargoes to 20 in 2026.

Those cargoes were expected to account for nearly 35 per cent of the country’s planned LNG imports of 115 cargoes next year.

Energy Secretary Mohammad Saiful Islam confirmed the development, saying Bangladesh had received formal notification from QatarEnergy.

“We have received an email about the reduced supply of LNG cargoes for 2026. QatarEnergy informed us that it will be able to deliver, at best, 50 per cent of the earlier scheduled cargoes,” he said.

Saiful said Dhaka was negotiating with Doha to minimise the impact.
“We are in contact with QatarEnergy. The company has also indicated that the reduced supply may continue beyond 2027,” he added.

The Energy Division has formed a committee to assess the implications of the supply shortfall while exploring alternative LNG sources outside the Middle East. Officials said Bangladesh would seek to secure at least 80 per cent of the originally committed cargoes through negotiations.

The disruption follows missile attacks on QatarEnergy’s production facilities during the recent US-Iran conflict, after which the company invoked force majeure in March. According to Petrobangla, the declaration has since been extended until 16 July.

The supply uncertainty has significantly increased Bangladesh’s dependence on the spot LNG market, driving up import costs. Petrobangla estimates the country’s LNG subsidy requirement for fiscal year 2025-26 has risen to Tk16,600 crore, compared with the original allocation of Tk6,000 crore.

“The Iran war cost us an additional Tk10,600 crore as most long-term suppliers have maintained force majeure since March, forcing us to rely on expensive spot purchases,” said AKM Mizanur Rahman, Director (Finance) of Petrobangla.

Officials said QatarEnergy delivered only eight cargoes before supply disruptions began, while nine cargoes scheduled between April and June were suspended under force majeure. Even if supplies resume later this year, Bangladesh is expected to receive fewer cargoes than originally planned.

The Energy Division has also questioned the continued force majeure declarations by LNG traders OQ Trading Ltd and Excelerate Gas Marketing, arguing that alternative loading ports are available despite earlier disruptions at Qatar’s Ras Laffan terminal.

To diversify supply sources, Bangladesh is exploring short-term LNG procurement agreements with countries in Southeast Asia, Central Asia, Africa and Oceania, including Australia, Brunei, Indonesia, Malaysia, Azerbaijan, Kazakhstan, Angola, Nigeria and Algeria.

“As part of our source diversification strategy, we are considering short-term supply agreements rather than relying solely on the spot market, as they expose us to less price volatility,” Saiful said.