Three LNG suppliers suspend shipments to Bangladesh

Bangladesh is facing growing uncertainty in its liquefied natural gas (LNG) imports after three major suppliers suspended deliveries under long-term contracts by invoking force majeure amid escalating tensions in the Middle East.

Officials at Petrobangla said the most recent notice came from Oman-based OQ Trading Limited on 5 March, followed a day later by US-based Excelerate Energy. Earlier, on 2 March, Bangladesh’s largest LNG supplier QatarEnergy had already invoked the same clause.

Force majeure allows suppliers to temporarily suspend contractual obligations when extraordinary circumstances beyond their control disrupt normal operations.

Petrobangla Chairman Md Arfanul Hoque confirmed the matter, saying Bangladesh is now exploring alternatives.

“We are trying to arrange LNG cargoes from the spot market to compensate for the supply gap created by the suspension of deliveries,” he said.

If the situation persists, Bangladesh could miss as many as eight LNG cargoes scheduled for April, including six under long-term agreements and two planned under short-term deals. This would leave the country increasingly dependent on the international spot market, where prices are often volatile.

According to the earlier import plan, Bangladesh expected to receive 11 LNG cargoes in April - six under long-term contracts, two under short-term arrangements and three from the spot market.

Energy officials noted that the supply chains of the three companies are closely linked.

QatarEnergy accounts for a significant share of the global LNG trade, and disruptions in its supply can affect other companies connected to its delivery network.

Petrobangla said the force majeure declared by OQ Trading is expected to remain in effect until 8 April, which means Bangladesh may lose two cargoes scheduled for delivery early that month.

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Energy Secretary Md Saiful Islam said the government is actively seeking alternative sources to ensure energy supply.

“We are trying to secure LNG from the spot market and are also considering government-to-government purchases through direct procurement,” he said.

However, officials warned that LNG availability in the spot market is tightening as major buyers such as China, Japan, South Korea and India compete for cargoes, pushing prices higher.

Petrobangla recently floated a tender to purchase LNG from the spot market for April delivery, inviting bids for four cargoes with a short response window.

The global LNG market has already shown signs of volatility. Spot cargoes that were priced below $10 per MMBtu at the beginning of March have recently surged to much higher levels in subsequent deals.

Officials say the rising prices and limited availability could pose a challenge for Bangladesh, which relies heavily on imported LNG to support power generation and industrial activity.

Meanwhile, Energy Minister Iqbal Hassan Mahmood Tuku said the country’s fuel reserves have recently improved with the arrival of two shipments. However, he stressed that energy use will continue to be managed carefully.

“We cannot use fuel without restrictions while the conflict continues,” the minister said, noting that rationing measures will remain in place for the time being.