The delivery of a total of seven liquefied natural gas (LNG) cargoes has so far been affected for Bangladesh due to the enforcement of force majeure by QatarEnergy and restrictions on the passage of vessels through the Strait of Hormuz.Bangladesh Investment Guide
The cargoes were scheduled to reach Bangladesh by mid-April.
Of the affected cargoes, four were scheduled to be supplied by QatarEnergy and one each by OQ Trading of Oman, Excelerate Energy of the US, and Aramco of Saudi Arabia, Petrobangla Chairman Md Arfanul Hoque told The Financial Express on Thursday.
Petrobangla was informed by the Middle Eastern Qatari LNG supplier about its announcement of force majeure several days back after ceasing its LNG production.
OQ Trading, Excelerate Energy, and Aramco informed Petrobangla about their enforced force majeure over the delivery of one LNG cargo each subsequently, said the Petrobangla official.
OQ trading was loading LNG in vessel in Qatar and some 39,000 cubic metres of LNG, out of the vessel’s capacity of 138,000 cubic metres, were loaded before the announcement of QatarEnergy’s force majeure and subsequent restrictions on the passage of vessels through the Strait of Hormuz, an industry insider said.
As per the terms of LNG supply contracts, the supplier has to announce port of loading for every LNG cargo they deliver, he said, adding all the mentioned LNG suppliers had previously announced their port of loading as Qatar.
The media departments of QatarEnergy, OQ Trading, Excelerate Energy, and Aramco did not comment on their enforcement of force majeure over the delivery of LNG cargoes to Bangladesh, following requests for comment by The Financial Express.
If the restriction on the passage of cargoes through the Strait of Hormuz continued for long, Bangladesh might have to face major challenges ahead, the Petrobangla chairman feared.
“We already purchased five spot LNG cargoes at very high prices for March and April deliveries as backup to the supply disruptions of our scheduled cargoes caused by the war and subsequent restrictions on the passage of cargo vessels through the Strait of Hormuz,” Mr Hoque said.
Bangladesh had no previous plan to purchase spot LNG cargoes in March and April, he said.
“Further to the announcement by QatarEnergy to stop the production of LNG and associated products, QatarEnergy has declared Force Majeure to its affected buyers,” QatarEnergy said in a press statement issued on March 4.
“Due to military attacks on QatarEnergy’s operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in the State of Qatar, QatarEnergy has ceased production of LNG and associated products,” QatarEnergy said in another press statement issued on March 2.
About 20 per cent of the global LNG exports come mainly from Qatar and are shipped through the Strait of Hormuz. Fortunately, four LNG cargoes out of six had passed through the Strait of Hormuz before the enforcement of force majeure by QatarEnergy, a senior official of state-run Rupantarita Prakritik Gas Company Ltd (RPGCL) told The Financial Express.
Source: Financial Express
