BD defers two LNG cargoes as demand fell due to Covid-19

Bangladesh has deferred two LNG cargoes having the capacity of carrying 138,000 cubic meters of LNG each as nationwide lockdown to combat the coronavirus pandemic has dented domestic demand of natural gas.

Both the cargoes were bound to supply LNG, or liquefied natural gas, in May from Qatar’s QatarGas, managing director of state-run Rupantarita Prakritik Gas Company Ltd, RPGCL, Md Kamruzzaman told the FE Wednesday.

He said both the cargoes have already been rescheduled and one of them will supply LNG in September and another in December this year, when domestic demand of natural gas are expected to grow.

Bangladesh’s nationwide shutdown, which lasted until May 30 restricted almost all types of transportation including air, rail, public transport as well as movement of private vehicles, with the exception of some critical travel services.

Almost all types of gas-based industries and factories were shuttered under the nationwide shutdown aimed at slowing the spread of coronavirus.

Only the gas-guzzling power plants are operational with limited output due to lower electricity demand across the country, which fell on an average by around 30 per cent to around 7,000 megawatt, according to the state-run Bangladesh Power Development Board.

More than half of Bangladesh's natural gas demand comes from the power sector, according to the International Energy Agency.

Natural gas demand had slipped by around one-third to 2,130 million cubic feet per day , or mmcfd, in May but state-run Petrobangla kept re-gasification of LNG almost unchanged to around 600 mmcfd most of the shutdown period compared with the pre-shutdown period.

Later the re-gasification shed to the current level of around 500 mmcfd.