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Project Insights

Bangladesh ups gas prices to bolster LNG imports

The country has hiked prices by around 33% as it tries to limit losses at state-owned Petrobangla while gas demand surges The country has hiked prices by around 33% as it tries to limit losses at state-owned Petrobangla while gas demand surges.
By Damon Evans 11 July 2019 Asia Pacific / LNG 0 34382
The signing ceremony for the FSRU used at Bangladesh's Summit LNG project. (Excelerate)

The key issue: The Bangladesh Energy Regulatory Commission announced on 30 June that it would be hiking gas prices by an average of 32.8% from 1 July 2019 – the start of the 2020 financial year – to help pay for an expanding LNG import bill. 

Interfax analysis: Bangladesh’s decision to increase gas prices shows that the government is serious about developing alternative sources of gas supply, particularly LNG imports, as domestic production struggles to meet surging demand. 

The country subsidises gas and sells it at below production...