Bangladesh secures spot LNG cargoes as costs soar, seeks Indian oil

DHAKA, March 12 (Reuters) – Bangladesh has bought three liquefied natural gas (LNG) cargoes on the spot market ‌at higher prices, as it scrambles to steady supplies amid disruptions from the escalating Iran–Israel conflict, energy officials said.

State-run Petrobangla has increasingly turned to the volatile spot market to bridge the supply gap, said energy officials in the South ​Asian nation, after some suppliers were forced to halt shipments.

“If the disruption drags on, we’ll have ​to lean more on costly spot LNG, which will add to our import ⁠burden and tighten supplies for power and industry,” an energy ministry official said, speaking on condition of ​anonymity.

The nation of 175 million relies on imports for roughly 95% of its energy needs. It has ​imposed fuel rationing for vehicles, curbed diesel sales and shut universities as the Iran war disrupts Middle East oil exports.

As the squeeze deepens, Bangladesh has also sought refined oil from other countries, including India and China.

New Delhi has ​received a formal request, Indian foreign ministry spokesperson Randhir Jaiswal said on Thursday. He said India would ​factor in domestic availability and refining capacity before supplying its eastern neighbour.

Bangladesh this week received around 5,000 metric tons ‌through ⁠a cross-border pipeline from India’s Numaligarh Refinery, and officials in Dhaka said talks were underway to secure about 30,000 metric tons from Indian Oil Corp.

TotalEnergies will also supply one gas cargo priced at $21.58 per million British thermal units (mmBtu) for delivery on April 5 to 6, while two from POSCO International Corp priced at $20.76 ​per mmBtu each are ​set for delivery on ⁠April 9 to 10 and April 12 to 13.

Earlier, QatarEnergy suspended LNG deliveries to Bangladesh under a long-term contract, citing such disruptions.

Petrobangla also arranged additional spot LNG ​cargoes this month to bridge the shortfall.

One shipment from commodity ​trader Gunvor, ⁠priced at $28.28 per mmBtu, is expected to arrive from March 15 to 16, while another cargo from Vitol, priced at $23.08 per mmBtu, is scheduled for March 18 to 19.

The latest purchases are a sharp increase over Bangladesh’s ⁠earlier ​LNG procurement this year. In January, it secured spot cargoes ​at about $10 per mmBtu, reflecting rapid price escalation as tension surged.

The government’s gas rationing effort has forced the shutdown of four fertiliser plants, ​to prioritise power generation and other key areas.