Bangladesh plans to raise Bangladesh LNG imports for fertilizer in 2026 to support gas-starved fertilizer factories. State-run Petrobangla will import at least seven additional LNG cargoes each year, preferably from the spot market. The company will include these extra cargoes in its Annual Delivery Programme (ADP) for 2026.
Petrobangla Chairman Md Rezanur Rahman said the move aims to ensure steady gas supply to fertilizer plants, many of which have faced repeated shutdowns due to ongoing gas shortages. As a result, the country’s fertilizer output has suffered.
Gas tariff for fertilizer factories rises sharply
The Bangladesh Energy Regulatory Commission (BERC) raised the natural gas tariff for fertilizer factories by 82.81%, bringing it to Tk 29.25 per cubic metre from December 1. This increase follows a public hearing held on October 6.
Earlier, Petrobangla and its subsidiary companies proposed a bigger hike—from Tk 16 to Tk 40 per cubic metre—to finance more LNG imports.
In their proposal, the state entities explained that the tariff hike is essential to cover rising LNG import costs and to fix the country’s chronic supply shortfall.
Higher LNG imports to support fertilizer production
Petrobangla stated that the revised tariff will allow it to supply:
250 mmcfd during peak fertilizer season (October–March),
165 mmcfd during April–May,
175 mmcfd in June,
130 mmcfd from July–September.
Currently, Bangladesh’s six fertilizer factories receive only 135 mmcfd on average, far below the required 194 mmcfd. This gap has led to production losses and increased import dependence.
Thanks to the tariff hike, Petrobangla plans to increase its annual LNG imports to 115 cargoes, up from 108, a 6.48% rise.
Revenue support and subsidies
Petrobangla Director for Finance Md Mizanur Rahman said the new tariff will generate Tk 20.34 billion in additional annual revenue. He added that the government may provide further support if needed.
Petrobangla already receives Tk 60 billion in government subsidies and Tk 1.07 billion from the Energy Security Fund to help import LNG during FY 2025-26.
Domestic fertilizer output set to rise
State-run Bangladesh Chemical Industries Corporation (BCIC) expects fertilizer production to rise by 63%, reaching 1.8 million tonnes per year, once gas supply becomes stable. BCIC’s Director for Planning and Implementation Md Delwar Hossain said this increase will help cut reliance on imported fertilizer and strengthen national food security.
Sources: The Financial Express
