Bangladesh factories cancel orders as Gulf LNG supplies tighten

Conflict and shipping disruptions around the Strait of Hormuz and Red Sea have sharply reduced or complicated Middle Eastern oil and LNG supplies, driving Asian LNG prices toward $30 per million British thermal units from about $10 before the crisis. Bangladesh, which relies on imported LNG for roughly two-fifths of its gas supply and more than 40% of its electricity, is facing gas shortages, blackouts and higher spot-market costs despite its floating terminals operating near capacity. The shortages are disrupting households, hospitals and factories, with more than half of surveyed knitwear manufacturers reporting canceled or reduced orders and most reporting partial production suspensions. Pakistan is experiencing steep petrol and diesel price increases and possible winter gas shortages, prompting the government to introduce a fuel subsidy that has been hindered by registration problems. The crisis underscores South Asia’s vulnerability to geopolitical shocks and could keep pressure on regional energy costs and global oil and gas markets if disruptions persist.