Bangladesh turns to US for LNG supplies amid global supply disruptions

• The U.S. deal starts with 5 cargoes in 2026, scaling to 10 cargoes annually from 2029-2038, with pricing based on JKM index plus $0.0875/mmBtu initially, then shifting to 121% of Henry Hub plus $5.20/mmBtu
• Eight additional cargoes approved through direct procurement from suppliers in Hong Kong, UK, Oman, and Australia, priced at either $14.95/mmBtu fixed or JKM plus $0.54/mmBtu
• The purchases aim to diversify LNG sources and reduce exposure to supply disruptions following QatarEnergy's force majeure declarations amid regional conflicts affecting production and shipping routes

Bangladesh Secures Long-Term US LNG Deal Amid Global Supply Disruptions

Bangladesh has approved a major long-term liquefied natural gas (LNG) agreement with US-based Gunvor, purchasing 117 cargoes between 2026 and 2038 to secure energy supplies amid global market disruptions linked to the U.S.-Israeli conflict with Iran.

Key Deal Terms:

• 5 cargoes in 2026, 6 in 2027, and 6 in 2028
• Initial shipments (2026-2027 and three 2028 cargoes) priced at Japan Korea Marker (JKM) index plus $0.0875/mmBtu
• Remaining cargoes (three in 2028, then 10 annually through 2038) priced at 121% of Henry Hub benchmark plus $5.20/mmBtu

Additional Procurement:

Bangladesh also approved eight spot cargoes through direct procurement:

• Two cargoes from Hong Kong's Zhenyu Shipping at fixed $14.95/mmBtu
• Six cargoes from Blackcube International (UK), Maxwell International (Oman), and Global Fuel Supplies (Australia) at JKM plus $0.54/mmBtu

Market Context:

The agreements address growing supply risks after QatarEnergy declared force majeure on some long-term contracts due to regional conflicts disrupting LNG production and shipping routes. Bangladesh is actively diversifying its LNG sources to reduce exposure to international market volatility.

Implications:

This deal represents a significant shift toward US LNG suppliers for Asian buyers seeking reliable alternatives to Middle Eastern sources. The long-term commitment through 2038 signals Bangladesh's strategic priority on energy security, while the mixed pricing structure balances near-term JKM-linked flexibility with longer-term Henry Hub exposure. The move underscores growing demand for US LNG exports as geopolitical tensions reshape global energy trade flows.