Written by The Banking Post
Bangladesh is moving to step up liquefied natural gas (LNG) imports as global spot prices soften and domestic gas production continues to lag demand.
For FY2025-26, the government initially planned to import 115 LNG cargoes through a combination of long-term contracts and spot purchases, up from 94 cargoes in the previous fiscal year. Officials now say the volume could rise further, taking advantage of subdued international prices.
“LNG prices have fallen significantly. I will suggest to the energy ministry that we import more,” Finance Adviser Salehuddin Ahmed said. “I hope imports this year will exceed the original plan.”
He noted that financing is not a constraint, though physical capacity limits how much LNG Bangladesh can bring in at short notice.
Each of the planned 115 cargoes would carry about 3.36 million mmBtu of gas, according to Rupantarita Prakritik Gas Company Limited (RPGCL), the state-owned LNG supply entity. On Monday, the government approved the purchase of a spot cargo at $9.99 per mmBtu.
Global LNG prices have cooled sharply since the 2022 surge triggered by the Russia–Ukraine war, when average prices hit $18.43 per mmBtu. Prices eased to $12.84 in 2024 and slipped further this year, falling from $13.52 in June to around $11.02 in November. Spot prices in North Asia have hovered near $9 per mmBtu, as demand from major buyers such as China and Japan remains weak.
International energy analysts say prices could soften further amid ample supply. Chinese buyers are sitting on strong inventories, while Japan and South Korea have shown limited spot market activity.
Bangladesh began importing LNG in 2018 to offset declining domestic gas output. Demand is projected to rise to 6,240 million cubic feet per day (mmcfd) by 2030, according to the Integrated Energy and Power Master Plan 2023. By end-2023, local production stood at about 2.08 billion cubic feet per day, below the 2012 level of around 2.20 billion cubic feet, Petrobangla data show.
Under existing long-term contracts, Bangladesh will import 40 cargoes from Qatar and 16 from Oman in FY26. Supplies are set to rise further in 2026 with additional volumes from both countries. A separate agreement with Excelerate Energy will add 14 cargoes a year starting January 2026. The government also plans to buy 33 spot cargoes during the current fiscal year.
In the first five months of FY26, up to November, Bangladesh imported 50 cargoes—29 under long-term deals and the rest from the spot market. LNG under long-term contracts is currently being procured at around $9.5 per mmBtu, an RPGCL official said.
Despite the favourable pricing, a rapid expansion of imports is constrained by infrastructure. Bangladesh currently has two floating storage and regasification units with a combined capacity of about 1,100 mmcfd. Two land-based LNG terminals planned in Cox’s Bazar, with a combined capacity of 2,000 mmcfd, are still at an early stage of development.
