At least five liquefied natural gas (LNG) vessels are currently stranded in the Strait of Hormuz amid escalating tensions between Iran and Israel, raising concerns about a possible gas shortage in Bangladesh after Eid-ul-Fitr.
Each of the ships carries about 3,000 million cubic feet (MMCF) of LNG, meaning roughly 15,000 MMCF of gas is currently unable to reach its destination.
Energy sector officials said this volume could supply the national grid for about 15 days.
However, Rupantarita Prakritik Gas Company Limited (RPGCL) has assured that gas supply will remain stable until Eid with existing reserves.
Bangladesh imports LNG to meet domestic demand and unloads the cargo through two floating terminals located in the Bay of Bengal near Maheshkhali in Cox’s Bazar. One of the terminals is operated by the US-based company Excelerate Energy, while the other floating storage regasification unit (FSRU) is operated by local conglomerate Summit Group.
Together, the two terminals have a daily regasification capacity of around 1,100 million cubic feet. Under normal conditions, they supply between 800 and 850 million cubic feet of gas to the national grid.
RPGCL Deputy General Manager (LNG) Prof Mohammad Saifullah Kabir told TIMES of Bangladesh that the two terminals supplied about 850 million cubic feet of LNG to the national grid on 7 March. He expressed hope that the supply situation would remain normal until Eid.
Meanwhile, 15 ships carrying various types of cargo had crossed the Strait of Hormuz before the Iran-Israel conflict began on 28 February. Among them, four ships are carrying LNG, two are transporting liquefied petroleum gas (LPG), and nine vessels are carrying clinker, a key raw material used in the cement industry.
These 15 ships together carry around 7,50,000 tonnes of goods. Of them, 12 vessels have already arrived at Chattogram Port, while the remaining three are expected to arrive within this week.
Bangladesh relies on the Strait of Hormuz as a key shipping route for trade with several Middle Eastern countries, including Iraq, Iran, Qatar, Kuwait, Bahrain, the United Arab Emirates and Saudi Arabia.
According to officials from RPGCL’s LNG division, if the crisis in the Strait of Hormuz continues, Bangladesh may face a more severe gas shortage after Eid. Gas demand typically falls during the Eid holidays as many factories remain closed. However, the government is reportedly considering purchasing LNG from the spot market at higher prices to maintain supply.
Chattogram alone has more than 3,000 large and small industrial units, including around 1,200 heavy industries. Experts warn that these heavy industries would be the worst affected if gas supply is disrupted. The steel, cement, shipbreaking, corrugated iron and garment sectors are expected to face the greatest impact.
Premier Cement Managing Director Mohammed Amirul Haque said Bangladesh’s oil and gas imports largely depend on the Strait of Hormuz.
“The supply chain has already started to feel the pressure. There is already a gas shortage, and if the situation worsens, industrial production across the country could be disrupted,” he said.
BGMEA Director Rakibul Alam Chowdhury said uninterrupted gas supply is essential for the ready-made garment industry.
“If gas pressure drops, the dyeing quality in textile factories is affected. Maintaining production with alternative fuel increases costs more than twice,” he said, adding that the Iran-Israel conflict is creating serious uncertainty in the energy supply chain.
According to RPGCL data, Petrobangla has been importing LNG since 2018, mainly from Qatar and Oman, and occasionally from other countries including Malaysia. Bangladesh imports around 100 to 115 LNG cargoes each year, with each ship carrying roughly 3,000 million cubic feet of LNG.
Data from the Chattogram Custom House showed that Bangladesh imported 4,96,253.76 metric tonnes of LNG in the fiscal year 2024–25, worth Tk3,446.61 crore. The government collected Tk516.99 crore in customs revenue from these imports.
In the previous fiscal year 2023–24, LNG imports totalled 6,81,983.75 metric tonnes, valued at Tk4,705.48 crore, generating Tk705.82 crore in customs revenue.
Meanwhile, shipping companies have started increasing freight costs due to the conflict in the Middle East. To cover rising operational risks, several international shipping lines have imposed additional surcharges on container shipments, affecting Bangladesh’s trade with the Gulf region.
A review of shipping company notices showed that the surcharge ranges from $800 to $2,000 per standard container, while large refrigerated containers may face additional charges of up to $4,000. Typically, a standard container carries around 14 tonnes of cargo, while larger containers can transport 28 tonnes or more.
Mediterranean Shipping Company has imposed a mandatory surcharge of $800 per container for shipments to the Arabian Gulf. Maersk Line has announced an emergency surcharge of $1,800 per container for cargo bound for seven Gulf countries.
Meanwhile, Hapag-Lloyd has introduced a war risk surcharge of $1,500 per container effective from 2 March.
Shafiqul Alam Jewel, former vice-chairman of the Bangladesh Shipping Agents Association, said the impact of the Iran-Israel conflict is already being felt in the global shipping industry.
“The additional freight costs will ultimately be borne by shipping agents, importers and finally consumers. If the conflict continues, the global supply chain will face serious disruption,” he said.
