Bangladesh has been avoiding the expensive spot LNG market, but the country had to reverse such a move amid an acute energy shortage that threatened its economy. The Energy and Mineral Resources Division (EMRD) ordered state-owned Petrobangla to halt spot LNG imports in the first week of August when spot prices rose to $15 per MMBtu.
However, industry sources said Petrobangla had been authorized to resume spot imports in September. Last week, Petrobangla’s subsidiary Rupantarita Prakritik Gas Co. Ltd. (RPGCL) opened a tender to buy a spot LNG cargo of around 138,000 cubic metres for September delivery. The sources added that Bangladesh is also mulling purchasing two other spot cargoes for October. This will come on top of monthly imports of around 5-6 term LNG cargoes.
Factories, power plants, and households in Bangladesh have been grappling with acute gas shortages in the past month. Since September 19, compressed natural gas (CNG) filling stations have shut for several hours every day. In addition, das shortages reduced industrial output and power generation. The government also instructed all oil-fired power plants to be on standby.
