Bangladesh Pays Triple Rates for LNG Amid Middle East Conflict

The Government of Bangladesh is paying nearly $30 per million British thermal units (MMBtu) for liquefied natural gas (LNG) on the spot market, approximately three times the rates paid before the war in the Middle East. The Cabinet Committee on Government Purchase recently approved October cargoes from Vitol Asia at $29.795 per MMBtu and TotalEnergies Gas & Power Ltd at $28.95 per MMBtu.

This price surge follows supply disruptions caused by the Middle East conflict and the suspension of long-term deliveries from Qatar. To mitigate these costs, the government approved four cargoes via direct procurement from US-based Darab Inc and Mind Mingle LLC at lower rates between $17 and $19 per MMBtu. However, previous attempts at direct procurement have been marred by significant delivery delays.

Petrobangla estimates that the conflict has added Tk 10,600 crore to the country's LNG subsidy burden for the 2025-26 fiscal year.