24/08/2026
Bangladesh has agreed to pay more than $24 per million British thermal units (MMBtu) for two LNG cargoes scheduled for delivery in September, as the country struggles to secure supplies amid a global market squeeze triggered by the US-Israel war on Iran.
Cabinet Committee on Government Purchase today approved one cargo from Posco International Corporation at $24.625 per MMBtu for delivery on September 13–14. A second cargo from TotalEnergies Gas & Power Ltd, UK, was approved at $24.25 per MMBtu for delivery on September 23–24.
The latest prices are more than twice the $10–$12 per MMBtu that Bangladesh typically paid for spot LNG before the war began in late February. They also represent another increase from the prices of several recently purchased cargoes.
Earlier this month, the government approved a cargo from Aramco Trading Singapore at $21.55 per MMBtu. Two cargoes approved last week from BP Singapore were priced at $21.878 and $21.778 per MMBtu, while another Aramco Trading cargo approved on August 19 was priced at $23.93 per MMBtu.
Sharp increase in LNG prices is putting additional pressure on Bangladesh’s import bill at a time when the country is becoming increasingly dependent on spot purchases to compensate for disruptions to its long-term supplies.
Each LNG cargo contains approximately 3.36 million MMBtu of gas. At the newly approved prices, each of the two shipments will cost roughly Tk 1,000 crore. At the pre-war spot-market price of $10–$12 per MMBtu, a similar cargo would have cost approximately Tk 410–490 crore.
According to Kpler data, Bangladesh has purchased 35 spot LNG cargoes since March, after Qatar, its largest long-term LNG supplier, reduced scheduled deliveries following the outbreak of the war.
However, securing additional cargoes has become increasingly difficult.
Bangladesh requires around 10 LNG cargoes each month to maintain its imported gas supply. Yet the government struggled to secure cargoes for the final week of August despite repeatedly inviting tenders.
The procurement difficulties have been compounded by technical problems at Excelerate Energy’s floating storage and regasification unit (FSRU) at Moheshkhali following a fire on July 21.
The terminal, one of Bangladesh’s two LNG import facilities, went offline, reducing national gas supply by roughly 450 million cubic feet per day (mmcfd). The two FSRUs together have a regasification capacity of approximately 1,100 mmcfd.
Excelerate resumed partial operations on August 6, but the terminal experienced another disruption and ran out of LNG on August 19. It resumed supply on August 22.
Despite the resumption of operations, LNG shortages have pushed overall national gas supply well below normal levels. Current supply stands at around 2,315 mmcfd, compared with the usual 2,650 mmcfd, creating a severe shortage across multiple sectors, including power generation and industrial production.
Before the US-Israel war on Iran began, imported LNG accounted for nearly 30 percent of Bangladesh’s gas supply, according to Energy Ministry data.
The conflict, along with disruptions to shipping through the Strait of Hormuz, has further complicated Bangladesh’s LNG supply situation. The country has a long-term LNG supply agreement with Qatar, which normally transports a significant portion of its LNG through the Strait of Hormuz.
Roughly one-fifth of global LNG trade passes through the strategic waterway, making disruptions there particularly significant for international gas markets.
In March, Iranian missile strikes on Ras Laffan Industrial City, home to Qatar’s largest LNG export facility, caused significant damage and disrupted production, according to international media reports.
With spot LNG prices continuing to rise and supply disruptions affecting both long-term and spot procurement, Bangladesh is facing mounting pressure on its energy security, import costs, and gas-dependent industries.
SAT-Style Reading Test
1. Main Idea
Which choice best states the main idea of the passage?
A. Bangladesh is reducing its dependence on imported LNG by developing domestic gas production.
B. Bangladesh is facing a worsening LNG supply and cost crisis because of international disruptions and problems with its import infrastructure.
C. Bangladesh has successfully secured enough long-term LNG contracts to protect itself from international price increases.
D. Bangladesh's LNG imports have become cheaper because of increased competition among international suppliers.
2. Vocabulary in Context
As used in the passage, “scramble” most nearly means
A. compete urgently.
B. negotiate peacefully.
C. calculate carefully.
D. withdraw gradually.
3. Supporting Evidence
Which choice best supports the answer to Question 1?
A. “Each LNG cargo contains around 33.6 lakh MMBtu of gas.”
B. “Bangladesh needs roughly 10 LNG cargoes a month to maintain its imported gas supply.”
C. “The rising prices are adding to the pressure on Bangladesh's LNG import bill at a time when the country is increasingly dependent on spot purchases.”
D. “The two FSRUs have a combined regasification capacity of about 1,100 mmcfd.”
4. Inference
Why are the latest LNG purchases particularly costly for Bangladesh?
A. The country is buying LNG exclusively from Qatar.
B. Current spot prices are more than twice the prices Bangladesh typically paid before the war.
C. Bangladesh has increased its LNG consumption while international prices have remained unchanged.
D. The latest cargoes contain significantly less gas than earlier shipments.
5. Detail
According to the passage, why has Bangladesh become increasingly dependent on spot LNG purchases?
A. Its domestic gas production has increased unexpectedly.
B. Qatar has reduced scheduled deliveries because of disruptions caused by the war.
C. Bangladesh has cancelled its long-term LNG contracts.
D. International suppliers have stopped offering long-term contracts.
6. Function of a Detail
Why does the author mention the July 21 fire at Excelerate Energy's FSRU at Moheshkhali?
A. To explain one of the reasons Bangladesh's domestic gas supply has fallen.
B. To demonstrate that Bangladesh is building a new LNG import terminal.
C. To show why Qatar has increased its LNG exports to Bangladesh.
D. To explain why LNG prices have fallen since August.
7. Vocabulary in Context
As used in the passage, “disruptions” most nearly means
A. improvements.
B. interruptions.
C. agreements.
D. expansions.
8. Inference
What does the passage suggest about Bangladesh's LNG supply situation in late August?
A. The country has more LNG than it needs but is paying unusually high prices.
B. The country has adequate long-term supplies but is choosing to buy additional spot cargoes.
C. The country is struggling both to obtain sufficient cargoes and to manage the higher cost of those cargoes.
D. The country has stopped importing LNG because of problems at its terminals.
9. Quantitative Reasoning
The passage states that a typical LNG cargo would have cost approximately Tk 410–490 crore at the pre-war spot-market price, whereas each of the latest cargoes will cost roughly Tk 1,000 crore.
Which conclusion is best supported by these figures?
A. The latest cargoes cost roughly twice as much as they would have before the war.
B. The latest cargoes cost substantially more than the pre-war price range.
C. The latest cargoes contain approximately twice as much gas as pre-war cargoes.
D. Bangladesh has reduced its LNG purchases despite higher prices.
10. Overall Purpose
The author mentions the Strait of Hormuz and Qatar's LNG export facilities primarily to
A. explain how a regional conflict has contributed to disruptions in Bangladesh's LNG supply.
B. argue that Bangladesh should stop purchasing LNG from Qatar.
C. compare Qatar's LNG infrastructure with Bangladesh's FSRUs.
D. demonstrate that most global LNG trade takes place between Bangladesh and Qatar.
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