Qatar Suspends LNG Supply to Bangladesh Until November

❐ BD Digest Desk

Qatar Energy has further delayed the supply of liquefied natural gas (LNG) to Bangladesh due to the ongoing war and security crisis in the Strait of Hormuz. The supply period, which was suspended until September, has now been extended to November.

Not only Bangladesh, but also several European countries including India and Pakistan are facing an energy crisis due to the shutdown of Qatar’s LNG supply. Qatar has said that it is not possible to fully resume LNG exports until shipping traffic on one of the world’s most important sea routes is normalized.

Qatar Energy announced a temporary suspension of gas supplies in accordance with the terms of the agreement in March after the war began. The suspension has been extended every month since then as the situation has not improved.

It is reported that in the first six months after the war began, Qatar was able to send only 18 LNG-carrying ships. While 509 ships sailed during the same period last year, this caused Qatar to lose about $24 billion in trade.

Meanwhile, Italy’s Edison Company said five LNG shipments scheduled for them have been canceled. Similar notices have reportedly been given to South Asian countries.

The impact of the Qatari gas supply cut-off is most severe on countries like Bangladesh, Pakistan, and India, which depend on Qatari LNG for a large portion of their energy needs.

As a result, they are now facing additional financial pressure to purchase alternative sources of gas from the world market at relatively higher prices.

On the other hand, the United States, Canada, and Malaysia are trying to increase their production to address the shortage in the global market. However, it is not possible to fully fill the deficit created by Qatar’s supply.

Nearly one-fifth of the world’s LNG is transported through the strategically important Strait of Hormuz, making it difficult for Qatar to export gas normally until the security situation in this sea route improves.

Experts fear that even if the sea route is declared safe, it could take at least two months for Qatar’s LNG production and supply system to fully return to normal, and that it could take three to five years to rebuild the gas plants damaged by the attack.

Because of this, it is feared that the gas supply situation in the global market may have to wait until 2028 to fully normalize.

Euro News