JUNE 2026
Bangladesh’s LPG market has demonstrated remarkable resilience this year, recording year-on-year import growth despite disruptions to LPG exports from the Middle East. According to data cited by local media from the Bangladesh National Board of Revenue (NBR), LPG imports rose by 38% year-on-year to 211,000 t in March, following a 21% increase in February when imports reached 171,000 t. The increase has been driven primarily by private sector companies, including Meghna Fresh LPG, United Aygaz, Jamuna Spacetech Joint Venture and Omera Petroleum.
Meanwhile, the Bangladesh Petroleum Corp. (BPC) has been exploring options to enter the LPG import market. Earlier this year, the state-owned agency invited tenders from several countries for LPG supply. However, the initiative did not achieve any success, as many suppliers did not respond, while others submitted offers above BPC’s target prices.
In a positive development, Bangladesh and the US signed an energy cooperation memorandum of understanding (MOU) in Washington on May 14. The agreement aims to promote knowledge sharing, capacity building and cooperation in energy sectors including oil, gas, geothermal and bioenergy. It could also support future imports of US LNG, LPG and other energy products.
Despite robust demand growth, infrastructure constraints remain a challenge. Bangladesh lacks the facilities to directly unload VLGCs, requiring ship-to-ship transfers into smaller vessels. Nevertheless, with a population approaching 180 million and with government support for LPG adoption, imports are projected to rise from about 1.5 MMt/y in 2026 to 2.2 MMt/y by 2028.
Bangladesh’s LPG imports declined in 2025 amid political uncertainty following the student-led protests that resulted in the removal of the previous prime minister and the installation of a caretaker government. The newly-elected government is now taking steps to strengthen energy security and support economic growth. If the government and private sector successfully secure LPG cargoes from the US under the planned MOU, LPG imports in 2026 and 2027 could exceed current forecasts.
This excerpt is taken from Poten’s LPG Market Outlook. Complete the form below to learn more or request a trial.