Global gas crunch leaves Bangladesh facing blackouts until 2026

Bangladesh faces another three years of rolling power cuts as the developing nation struggles to secure long-term supplies of natural gas and is priced out of spot markets. 

The South Asian country stopped purchasing spot liquefied natural gas (LNG) cargoes in June because of volatile prices, and is considering sourcing more long-term supplies, Nasrul Hamid, the state minister for power, energy and mineral resources, said in an interview. However, producers including Qatar have indicated that they will only sell more contracted volumes from 2026, he said. 

A global shortage of the power-generation fuel that’s been exacerbated by Russia’s invasion of Ukraine has doubled spot prices for LNG in Asia and fueled frantic restocking in Europe, leaving little supply for emerging 

economies. 

With few alternatives, rolling power cuts are likely to put a drag on economic growth in the next few years, according to traders.

Bangladesh is seeking support from creditors, including the International Monetary Fund. 

“Between this year and 2026, emerging Asian markets are set to see slower LNG demand growth than previously expected, as price-sensitive buyers slash expensive imports,” said Lujia Cao, an analyst with BloombergNEF.