Petrobangla and its subsidiary, Rupantarita Prakritik Gas Company Limited (RPGCL), are negotiating with several global liquefied natural gas (LNG) suppliers for imports under short-term and medium-term contracts. This action comes in response to the force majeure declared by long-term suppliers in March 2023, which led to the non-delivery of shipments.
Reasons for LNG Supply Issues
The non-delivery of LNG to Bangladesh has occurred due to the U.S.-Iran war and disruptions in the Strait of Hormuz. This situation has forced Bangladesh to rely entirely on unstable markets, which have nearly tripled costs and intensified pressure on the energy budget. According to Petrobangla data, the country's daily natural gas requirement is about 4,000 million cubic feet per day, while its actual supply on September 22 was around 2.576 billion cubic feet per day.
Proposed Contracts from Suppliers
Trafigura, Total Energies, and BP Singapore have submitted proposals for the delivery of LNG shipments between late 2026 and mid-2027. Trafigura has proposed to supply 16 shipments between November 2026 and December 2027 at a price of $0.05 per million BTU above the JKM index. Total Energies has also proposed 18 shipments between October 2026 and June 2027, with proposed prices based on Henry Hub and JKM formulas. BP Singapore has also proposed the delivery of two shipments per month from December 2026 to June 2027, at a price of $0.055 above JKM.
Additionally, Bangladesh has signed a short-term contract with Total Energies for the delivery of 18 shipments during the same timeframe. This contract includes the delivery of two shipments each month at a price of 6.0 cents above JKM.
Long-term Contracts with Gunvor
Last month, Bangladesh also signed a contract worth 117 LNG shipments with Gunvor USA LLC for delivery over the next 12 years (until 2038). This contract includes the delivery of 14 shipments during the 2026-2028 period at a price of JKM plus $0.0875 per million BTU. Additionally, the remaining 100 shipments will be delivered in the years 2029 to 2038 at a price 121% higher than Henry Hub plus $5.20 per million BTU.
All these shipments will be sent to Maheshkhali Island, with the possibility of unloading at one of the two floating storage and regasification units (FSRUs). Bangladesh has been compelled to sign these contracts due to supply issues arising from Middle Eastern wars and disruptions in the Strait of Hormuz.
