Govt Cancels Summit’s LNG Terminal Contract

The government of Bangladesh has approved the purchase of two LNG cargoes from Singapore's Vitol Asia Ltd through the spot market, with a total expenditure of Tk 1,104.41 crore—one cargo costing Tk 549.09 crore and the other Tk 555.32 crore.

Qatar has agreed to renew a previously expired MoU with Bangladesh for liquefied natural gas (LNG) supply and advance discussions on a land-based LNG terminal in Cox’s Bazar. Under the existing SPA signed in 2017, Bangladesh imports 1.5–2.5 million tonnes per annum (MTPA) of LNG for 15 years, with a second SPA signed in June 2023 for an additional 1.5 MTPA starting in January 2026.

Between August 2024 and mid-April 2025, outstanding dues in Bangladesh’s gas sector dropped by 68%, from $750 million to $240 million, due to an aggressive repayment push by the interim government. Over $500 million was cleared in just six weeks, with $180 million disbursed between April 7–16 alone.

Bangladesh’s industrial sector faces a dual shock from a gas price hike and new US tariffs. The government raised the gas price for new industrial connections from Tk 30 to Tk 40 per cubic metre, discouraging fresh investment.

The government has initiated a Tk798 crore project to drill two deep exploratory wells in the Titas and Bakhrabad gas fields to confirm potential gas reserves. Scheduled for completion by June 2027, the project will receive Tk558.60 crore from the government and Tk239.40 crore from Bangladesh Gas Fields Company Limited (BGFCL), under Petrobangla.

The government has issued tenders to import three spot cargoes of liquefied natural gas (LNG) to address increasing energy demand during the summer. These LNG shipments are scheduled to arrive between late May and mid-June. Rising temperatures since March have led to higher energy consumption, prompting the need for additional imports.