By Asif Showkat Kallol (Dhaka Bureau)
Bangladesh has approved the emergency purchase of three cargoes of liquefied natural gas (LNG) from international suppliers at more than double the price paid only a few months ago, as concerns grow over energy supply disruptions linked to tensions in the Middle East.
The decision was approved on Wednesday at a meeting of the government’s procurement committee, chaired by finance minister Amir Khosru Mahmud Chowdhury, according to officials familiar with the discussions.
Under the plan, Bangladesh will import three LNG cargoes from suppliers in the United Kingdom and South Korea at a total cost of Tk26.54bn (about $240m).
Officials say the move is aimed at stabilising domestic energy supply as global gas markets remain volatile.
Emergency purchase outside the agenda
Sources present at the meeting said the proposal was introduced outside the meeting’s scheduled agenda by the energy and mineral resources division, reflecting the urgency of securing fuel supplies.
The LNG will be purchased from the spot market through international quotations under the provisions of the Public Procurement Rules 2025.
The shipments are scheduled to arrive in early April:
5-6 April- first cargo
9-10 April- second cargo
12-13 April- third cargo
UK supplier cargo priced at $21.58 per unit
One of the cargoes will be supplied by the UK-based energy trading company TotalEnergies Gas & Power Limited at a cost of Tk9.07bn.
The price has been fixed at $21.58 per MMBtu, according to procurement documents.
The figure represents a dramatic rise from a deal approved on 9 December last year, when Bangladesh agreed to purchase LNG from the same company for $10.37 per MMBtu, costing roughly Tk4.36bn for one cargo.
The latest purchase therefore, comes at more than double the previous price, highlighting the rapid escalation in spot market costs.
South Korean supplier also charging higher rates:
Two additional cargoes will be imported from South Korea’s POSCO International Corporation.
Each cargo will cost approximately Tk8.73bn, with a price of $20.76 per MMBtu.
Combined, the two shipments will cost more than Tk17.46bn, forming the largest share of the emergency procurement package.
Officials said the prices are also significantly higher than those recorded in December, reflecting tighter global supply conditions.
Rising energy costs for Bangladesh
Bangladesh relies heavily on imported LNG to supplement its declining domestic gas production. The country purchases LNG through a combination of long-term contracts and spot market deals.
Spot purchases, while offering flexibility during supply shortages, expose the government to rapid price fluctuations during geopolitical crises or supply disruptions.
Energy analysts say the latest procurement underscores the pressure facing Bangladesh’s energy planners.
‘Buying from the spot market during global uncertainty almost always means paying a premium,’ said one energy market observer. ‘But the government often has little choice when domestic demand rises, and contracted supplies are insufficient.’
War-driven volatility in global gas markets
Global LNG prices have surged amid uncertainty surrounding energy flows linked to the conflict in the Middle East and wider geopolitical tensions affecting supply chains.
For energy-importing countries like Bangladesh, the spike in prices has significant fiscal implications, potentially increasing subsidy requirements and placing further strain on foreign exchange reserves.
The government has not yet indicated whether the higher procurement costs will lead to adjustments in domestic gas prices, but officials say securing an uninterrupted supply remains the immediate priority.
As Bangladesh prepares to receive the three shipments in early April, analysts warn that continued volatility in global energy markets could force the country to rely even more heavily on costly spot purchases in the months ahead.
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