The Bangladeshi government has approved the procurement of five liquefied natural gas (LNG) cargoes for delivery in 2026, as part of efforts to ensure a stable gas supply for electricity generation and industrial consumption.
The decision was taken on Tuesday at the fourth meeting of the Advisers Council Committee on Government Purchase this year, held at the Cabinet Division conference room in the Bangladesh Secretariat. The meeting was chaired by Finance Adviser Dr Salehuddin Ahmed.
Following the meeting, Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan said the LNG would be procured by state-owned Petrobangla from Aramco Trading Singapore Pte Ltd under a government-to-government (G2G) arrangement.
Under the approved proposal, the price of the LNG has been set at the Japan-Korea Marker (JKM) benchmark plus an additional premium of US$0.145 per million British thermal units (MMBtu). The JKM index is widely used as a reference price for spot LNG transactions in Asia.
Officials said the imports would play a critical role in maintaining uninterrupted gas supplies, particularly during periods of peak demand. Bangladesh’s domestic gas production has been declining steadily in recent years, increasing reliance on imported LNG to fuel power plants, fertiliser factories and energy-intensive industries.
At present, LNG accounts for a significant share of the country’s gas supply, with imports being regasified through floating storage and regasification units (FSRUs) in the Bay of Bengal. The government has repeatedly stressed that securing LNG through long-term or G2G deals helps reduce exposure to extreme price volatility in the global spot market.
Energy analysts note that advance procurement decisions for future years, such as 2026, reflect the government’s attempt to improve planning and budget certainty in the energy sector. Global LNG prices have remained sensitive to geopolitical tensions, supply disruptions and shifting demand from major consuming regions, including East Asia and Europe.
Bangladesh has previously faced challenges during periods of high international LNG prices, leading to load-shedding and curtailed gas supply to industries. Officials say timely procurement and diversified sourcing are essential to supporting economic growth and ensuring energy security.
The latest approval comes as the government continues to balance the need for reliable energy supplies with fiscal discipline, amid pressure to manage subsidy costs in the power and energy sectors.
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