DHAKA, July 7 — Qatar has cut its scheduled liquefied natural gas (LNG) supplies to Bangladesh by half this year after the conflict involving Iran disrupted energy shipments through the Strait of Hormuz, according to Bangladesh’s state-owned energy agency.
Petrobangla Acting Chairman Abdul Mannan confirmed the development to Reuters on Monday, saying the supply disruption was directly linked to the ongoing war and its impact on regional energy transportation.
“The root cause of these problems is the war,” Mannan said. “We are looking for alternative sources to address the shortfall. Bangladesh may increase LNG purchases from the spot market, while agreements with governments of other supplier countries are also under consideration. We will choose the most commercially viable option while ensuring the country’s energy security.”
Qatar is the world’s second-largest LNG producer after the United States and Bangladesh’s largest LNG supplier. Bangladesh imported nearly 7 million metric tons of LNG last year, about 4 million tons of which came from Qatar.
Petrobangla currently has two long-term supply agreements with QatarEnergy, covering annual deliveries of 2.5 million metric tons and 1.8 million metric tons, respectively.
Mannan said QatarEnergy has assured Bangladesh that it will continue supplying LNG to the extent possible despite the reduction in scheduled deliveries.
QatarEnergy did not immediately respond to requests for comment.
According to energy analytics firm Kpler, Bangladesh received 19 LNG cargoes from Qatar under long-term contracts before the conflict began on Feb. 28.
However, no LNG cargoes have arrived from Qatar’s Ras Laffan export terminal since the outbreak of the war, forcing Bangladesh to rely on the spot market. Since March, the country has imported 35 spot-market LNG cargoes to meet domestic demand.
Around 20% of the world’s LNG supply normally passes through the Strait of Hormuz, making the waterway one of the most strategically important energy transit routes. Any disruption there has significant implications for global energy markets and import-dependent countries such as Bangladesh.
