The Bangladesh government has approved the emergency procurement of three liquefied natural gas (LNG) cargoes at more than double the price paid in December, as ongoing geopolitical instability in the Middle East continues to exert upward pressure on global energy markets.
The Cabinet Committee on Government Purchase, chaired by Finance Minister Amir Khasru Mahmud Chowdhury, granted approval for the imports during a meeting on Wednesday, March 11. The decision, taken outside the scheduled agenda, authorises the Energy and Mineral Resources Division to acquire two cargoes from South Korea's POSCO International Corporation and one from the United Kingdom-based Total Engineering Gas and Power Limited.
Substantial cost increase
The total expenditure for the three cargoes is estimated at 2,654 crore 54 lakh 63 thousand 280 taka. Delivery is scheduled for mid-April, with one cargo arriving on 5-6 April, a second on 9-10 April, and the final shipment on 12-13 April.
According to meeting sources, the procurement will be executed through the international spot market under Rule 105(3)(a) of the Public Procurement Rules 2025, which permits direct acquisition in urgent circumstances without undergoing the standard tender process.
Price breakdown and comparative analysis
United Kingdom cargo
• Supplier: Total Engineering Gas and Power Limited
• Cost: 907 crore 84 lakh 64 thousand 304 taka
• Price per MMBTU: $21.58
• Previous purchase (December 2024): 436 crore 7 lakh 65 thousand 852 taka at $10.37/MMBTU
South Korean cargoes (2 units)
• Supplier: POSCO International Corporation
• Cost per cargo: 873 crore 34 lakh 99 thousand 488 taka
• Price per MMBTU: $20.76
• Comparative December pricing: approximately half the current rate
The data indicates that the government is paying more than 100 per cent above December's rates for identical volumes, reflecting the sharp volatility in global LNG spot prices driven by supply chain disruptions and heightened demand amid regional conflict.
Market context and strategic implications
Energy analysts note that the Middle East crisis has triggered a reassessment of LNG procurement strategies across South Asia. Bangladesh, which relies on imports for approximately 40 per cent of its natural gas requirements, faces particular exposure to spot market fluctuations.
The Finance Ministry has not yet indicated whether the additional costs will be absorbed through the national budget, passed on to consumers via tariff adjustments, or managed through a combination of both approaches.
Regulatory framework and procurement process
The utilisation of Rule 105(3)(a) of the Public Procurement Rules 2025 highlights the exceptional nature of this acquisition. The provision allows ministries to bypass competitive bidding when urgent operational needs arise, provided that pricing is benchmarked against international quotations and approved by the relevant cabinet committee.
Officials from the Energy and Mineral Resources Division confirmed that all three cargoes were sourced following a structured international quotation process, with pricing validated against prevailing spot market indices for April delivery.
Industry observers expect LNG prices to remain elevated through the second quarter of 2026, contingent on developments in the Middle East and global demand patterns.