Impact of Middle East crisis: Qatar Energy reduces LNG supply to Bangladesh

Reuters reported this information citing the acting chairman of Petrobangla and sources from the relevant industrial sector.

Petrobangla's acting chairman Abdul Mannan said that this problem has arisen due to the war situation in the Middle East. The government is working on various alternatives to address the potential supply shortfall. This includes purchasing additional LNG from the international spot market and considering new supply agreements with other countries on a government-to-government (G2G) basis.

He said that the most economically viable option will be adopted to ensure the country's energy security.

Qatar is the largest source of LNG imports for Bangladesh. After the United States, Qatar is currently the world's second-largest LNG exporter. Last year, Bangladesh imported about 7 million metric tons of LNG, of which about 4.15 million metric tons came from Qatar.

Currently, two long-term supply agreements are in effect between Petrobangla and Qatar Energy. Under one agreement, 2.5 million metric tons of LNG are to be supplied annually, and under the other, 1.8 million metric tons.

However, when contacted for an official response from Qatar Energy regarding the decision to reduce supply, no immediate comment was received from the company.