DHAKA: 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.

 

(Reporting by Ruma Paul; Editing by Clarence Fernandez)