Bangladesh secures spot LNG cargoes as Mideast conflict lifts costs

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.

TotalEnergies will supply one 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.

The purchases come after 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.