Bangladesh is set to reduce its high sulfur fuel oil (HSFO) imports by 33.3% in September 2023 due to decreased demand in the power generation sector. The drop in demand is attributed to the arrival of monsoonal rains, which have lowered peak summer temperatures. Bangladesh is expected to import approximately 250,000 metric tons of 180 CST HSFO with 3.5% sulfur content in September, down from about 375,000 metric tons in August 2023. Delays in clearing outstanding payments to power plant owners, many of whom are HSFO importers, have contributed to this reduction in fuel oil imports.
The Asian HSFO market is anticipated to face pressure as the Middle East concludes its peak summer power generation demand, potentially increasing supplies to Asia. However, the limited availability of non-Russian cargoes may support the market. Bangladesh also plans to import fewer spot LNG cargoes in September. Bangladesh’s total generation capacity from oil-fired power plants is approximately 7.482 GW, with the majority being HSFO-fired, accounting for 31% of the country’s total installed capacity.
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