Bangladesh wants more Qatari LNG, and a way around Hormuz
State Minister for Power, Energy and Mineral Resources Aninda Islam Amit held talks with Qatar’s Energy Affairs Minister Saad bin Sherida Al Kaabi in Saudi Arabia on 11 October, according to Bangladesh’s energy ministry.
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In a Nutshell
- State Minister for Power, Energy and Mineral Resources Aninda Islam Amit held talks with Qatar’s Energy Affairs Minister Saad bin Sherida Al Kaabi in Saudi Arabia on 11 October, according to Bangladesh’s energy ministry.
- The two sides discussed Bangladesh’s rising gas demand and its existing LNG import arrangements.
- Bangladesh explored a possible new long-term LNG supply agreement with QatarEnergy.
- Discussions included using QatarEnergy’s international portfolio and shipping routes to diversify Bangladesh’s sources of LNG.
- Qatar is already one of Bangladesh’s principal long-term LNG suppliers.
- Supply uncertainty has risen after reported disruption to Qatari LNG flows linked to the US-Israel war on Iran and the closure of the Strait of Hormuz.
Context
Bangladesh began importing LNG in 2018 as domestic gas output struggled to keep pace with demand from power plants, factories and households. Qatar has supplied Bangladesh under long-term arrangements, giving Dhaka a relatively predictable base of imported gas. But LNG remains exposed to global shipping routes, spot market prices and geopolitical shocks. The Strait of Hormuz is especially important because it is the main exit route for LNG produced in Qatar.
Why It Matters
The talks matter because Bangladesh’s energy system is increasingly tied to imported LNG at a time when supply routes are under geopolitical pressure. Gas remains important for electricity generation and industry, so delayed cargoes or higher LNG prices can affect power reliability, factory costs and the public subsidy burden.
A new agreement with QatarEnergy could provide greater contractual certainty than relying heavily on the volatile spot market.
Yet the reported disruption to Hormuz underscores a central limitation: a contract with a reliable producer does not automatically eliminate exposure to a blocked maritime chokepoint.
QatarEnergy’s broader international portfolio could therefore offer Bangladesh more flexibility if it includes supplies originating outside the Gulf, although the commercial terms, delivery guarantees and pricing structure remain crucial.
What We Think
Bangladesh’s strategic interest lies in securing reliable gas without deepening dependence on a single producer, route or pricing formula. QatarEnergy offers scale, experience and an existing commercial relationship, making a longer contract potentially valuable during market disruption. But the key question is not only how much LNG is contracted but also where it is sourced, how delivery risk is allocated, and whether the price remains manageable during global shocks.
Dhaka’s bargaining position is stronger if it combines any new Qatar arrangement with a wider supplier base, flexible cargo options, stronger LNG storage and continued efforts to reduce gas wastage. Import dependence also reinforces the economic case for accelerating domestic exploration and expanding non-gas power sources.