QatarEnergy is expected to supply 26 of the 40 liquefied natural gas (LNG) cargoes contracted for Bangladesh in 2027, meeting 65% of its annual commitment, as the government has decided to finalise the country’s LNG import schedule only up to March initially amid uncertainty over supplies from long-term suppliers.
The Cabinet Committee on Government Purchase has instructed Petrobangla to prepare the Annual Delivery Programme for LNG imports up to March 2027 instead of finalising the entire year’s schedule, officials said.
The decision reflected policymakers’ expectation that the geopolitical situation surrounding the Strait of Hormuz could improve after the US midterm elections, potentially allowing more LNG shipments to pass through the strategic shipping route and enabling suppliers to resume deliveries under long-term contracts.
Petrobangla officials said policymakers were hopeful that a possible understanding between the United States and Iran could ease the disruption and help Bangladesh secure additional cargoes under existing supply agreements.
Based on this expectation, the authorities opted to keep the import schedule flexible rather than commit to a full-year delivery plan amid continuing uncertainty.
The uncertainty follows the outbreak of the Iran-US war on 28 February, which disrupted LNG production and shipments through the Strait of Hormuz.
Several suppliers invoked force majeure, making it difficult for Bangladesh to ensure deliveries under its long-term contracts.
Bangladesh initially planned to import around 115 LNG cargoes in 2027, of which at least 103 were expected to come through long-term and short-term contracts.
However, Petrobangla and Energy Division officials said only 71 cargoes from a combined pool of 128 contracted cargoes had so far been confirmed.
QatarEnergy remains key to Bangladesh’s supply plan
QatarEnergy, Bangladesh’s largest LNG supplier, is scheduled to deliver 26 cargoes in 2027 against its annual contractual commitment of 40, equivalent to 65% of the contracted volume.
Its subsidiary, QatarEnergy Trading LLC, is expected to supply another 18 cargoes against 24 contracted cargoes, representing 75% of its commitment.
Together, the two Qatari entities are expected to supply 44 cargoes in 2027, making them the largest contributors to Bangladesh’s LNG import programme.
The reduced supply outlook from QatarEnergy follows the company’s force majeure declaration after disruptions to its production and export operations. Bangladesh had originally expected all 40 cargoes under the agreement in 2027.
The situation has also affected OQ Trading (OQT), Oman’s state-owned LNG supplier, which is contractually scheduled to provide 32 cargoes to Bangladesh in 2027. The company has yet to confirm any cargoes for the year.
OQ Trading proposed supplying 16 cargoes, or half of its contractual commitment, while seeking to replace the existing Brent-linked pricing formula with a Japan-Korea Marker (JKM)-linked formula of JKM minus $0.04 per million British thermal units (MMBtu).
Petrobangla has rejected the proposal, insisting that the company honour its existing contractual obligations. OQT has suspended deliveries since the supply disruption began in March, citing force majeure.
Gunvor, TotalEnergies to supply 18 cargoes
Meanwhile, Bangladesh has secured six cargoes from Gunvor USA LLC in 2027 under its recently signed 13-year LNG supply agreement covering 117 cargoes between 2026 and 2038.
The six cargoes will be priced at JKM plus $0.0875 per MMBtu. Under the agreement, Gunvor will supply 14 JKM-linked cargoes during 2026-2028, comprising five in 2026, six in 2027 and three in 2028.
The remaining 103 cargoes will be priced at 121% of the US Henry Hub benchmark plus $5.20 per MMBtu, with deliveries scheduled from 2028 to 2038.
France-based TotalEnergies is expected to supply 12 cargoes in 2027 under a recently signed short-term arrangement covering 18 cargoes from October 2026 to June 2027. The cargoes will be priced at JKM plus $0.06 per MMBtu.
US-based Excelerate Gas, another long-term supplier, has confirmed nine cargoes against 14 scheduled deliveries for 2027.
Each LNG cargo carries approximately 2,900-3,000 million cubic feet of natural gas after regasification.
Rising import costs add to fiscal pressure
The disruption to long-term supplies has increased Bangladesh’s dependence on the volatile spot market, exposing the country to higher import costs.
The government spent Tk10,300 crore on LNG subsidies in the first three months of FY27 alone, reflecting the growing financial pressure of maintaining gas supplies amid international market volatility.
Against this backdrop, the decision to prepare the LNG delivery schedule only up to March is also intended to give Petrobangla room to reassess supply commitments and procurement requirements as the situation in the Middle East evolves.
About The Author
