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Project Insights

Petrobangla to face financial strain from higher LNG imports

The delivery of Bangladesh’s second FSRU last week will increase the burden on Petrobangla, which sells gas into the domestic market at a loss The delivery of Bangladesh’s second FSRU last week will increase the burden on Petrobangla, which sells gas into the domestic market at a loss.
By Andrew Walker 29 April 2019 Asia Pacific / LNG 0 34173
Excelerate Energy's Excelerate and Excelsior vessels in Argentina. (YPF)

Bangladesh received its second FSRU last week, which could bring an end to the gas shortages that have plagued the country in recent years and stifled economic growth. However, the high cost of imported LNG is forcing state oil company Petrobangla to call for an increase in gas prices, which could limit demand growth for the fuel.

Petrobangla proposed hiking gas prices last month as it is losing money on the sale of imported LNG to the domestic market. The imminent startup of the second floating...