PM Tarique directs energy officials to prepare LNG spot purchases as Hormuz risks grow

With eight LNG cargoes needed in March, Tarique moves to strengthen energy security as Middle East tensions threaten supply routes

With tensions in the Middle East threatening shipments, Prime Minister Tarique Rahman has directed authorities to prepare for purchasing liquefied natural gas (LNG) from the spot market with possible supply disruptions through the Strait of Hormuz looming.

The Hormuz situation has raised concerns over LNG shipments under Bangladesh’s long-term contract with Qatar.

Bangladesh requires at least eight LNG cargoes in March to meet domestic demand.

Given the evolving situation, discussions have begun on importing additional cargoes from the spot market, with Tarique later issued directives.

The Bangladesh Bank has also been asked to remain prepared to supply the necessary foreign currency to ensure swift payment of energy import bills.

Power and Energy Minister Iqbal Hasan Mahmud Tuku told bdnews24.com on Tuesday night that the country currently has adequate fuel reserves and there is “no immediate risk of a crisis”.

“However, considering the ongoing situation in the Middle East, the prime minister has instructed relevant departments to ensure all procedural, financial and supply-related preparations for purchasing fuel from the spot market if required,” he said.

An official of Petrobangla said discussions had taken place and procedural matters now need to be finalised, including sourcing and logistics, before a formal proposal is placed.

He said several cargoes under long-term contracts have already arrived, while some are on the way.

Whether the remaining supplies are delivered or disrupted will depend on the war situation, which may become clearer in the coming days.

Bangladesh supplies an average of 2,600 to 2,900mmcfd of gas daily, of which around 900 to 980mmcfd comes from imported LNG.

Due to declining domestic gas production, the country imports 110 to 115 LNG cargoes annually, with a major portion coming under long-term agreements with Qatar and Oman.

According to Petrobangla data on Mar 3, total gas supply stood at 2,662mmcfd, including 952mmcfd from imported LNG.

As per data from Bangladesh Petroleum Corporation on Mar 3, the country has 216,010 tonnes of diesel, 21,705 tonnes of petrol and 34,133 tonnes of octane in stock.

Officials estimate current diesel reserves can meet demand for around two weeks.

Padma Oil Company has jet fuel stocks sufficient for nearly 20 days.

On LPG, widely used for household cooking, the Energy Division said about 194,000 tonnes are scheduled to arrive in March under letters of credit opened in February.

However, shipments may be delayed due to disruptions in the Strait of Hormuz.

Private importers have been advised to secure supplies from alternative sources if necessary.