Bangladesh Seeks Long-Term LNG Contract With Qatar as Energy Crisis Looms

More than 70 percent of the country's electricity is generated from gas-fired power plants. The Sheikh Hasina government has curtailed working hours across the country to save power.

Bangladesh has started negotiations with Qatar for a long-term LNG import deal as the energy-starved Asian nation explores different ways to maintain its gas-powered plants. The prices under the contract would be lower than the spot price, reports indicate.

Salman F Rahman, the prime minister's private industry and investment adviser, said that current international gas prices are so high that "it's becoming tough for Bangladesh to afford it."

"The biggest issue at this moment is gas… About 70-80 percent of Bangladesh's electricity is generated by gas-based power plants," Rahman said.

The advisor warned of an impending gas crisis if the prices in the international market do not decrease within six months.

He added that Bangladesh is also trying to import fuel from India as an alternative source.

The high-ranking official underlined that potential imports of refined oil from Russia would not create problems for Bangladesh as the transactions can go through 24 non-sanctioned banks.

The Sheikh Hasina government curtailed school and office hours from August 24 to save power as the energy crisis worsens.

The country of 160 million people has been facing a severe fuel and food crisi triggered by a rise in commodity prices in the international market.