LNG shortages: Global traders propose short-, mid-term supply deals
A number of global liquefied natural gas (LNG) suppliers have queued up to supply LNG to Bangladesh under short- to medium-term contracts at reduced costs after the country’s contractual long-term suppliers declared force majeure on their deliveries in March. The non-delivery, caused by the US-Iran war and disruptions to the Strait of Hormuz, has forced ...
Bangladesh has been facing severe shortages of liquefied natural gas (LNG) due to contractual suppliers invoking force majeure clauses, caused by the US-Iran war and disruptions to the Strait of Hormuz. This has forced the country to rely on the erratic spot market, resulting in costs nearly tripling and straining the energy budget.
State-owned Petrobangla and its subsidiary Rupantarita Prakritik Gas Company Ltd are now in talks with global trading houses to secure short- to medium-term contracts for LNG imports. Trafigura, TotalEnergies Gas & Power, and BP Singapore have already proposed delivering cargoes between late 2026 and mid-2027. Trafigura has offered to supply 16 cargoes at a price of Platts’s JKM plus $0.05 per MMBtu, while TotalEnergies has proposed 18 cargoes at prices tied to both Henry Hub and JKM formulas.
BP Singapore will deliver two cargoes per month from December 2026 to June 2027 at a cost of Platts JKM plus $0.055 per MMBtu. The government has previously awarded a short-term supply deal to TotalEnergies for 18 cargoes from October 2026 to June 2027. Bangladesh is also set to award a contract to Gunvor USA LLC for 117 LNG cargoes over the next 12 years, with the first 14 deliveries in 2026-28 at JKM plus $0.0875 per MMBtu and the remaining 100 cargoes from 2029-2038 at 121% of Henry Hub plus $5.20 per MMBtu.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
