The ongoing conflict in the Middle East has disrupted supplies, forcing Pakistan and Bangladesh to procure some of their most expensive liquefied natural gas (LNG) shipments in recent years. This situation is straining government finances and prompting a reassessment of their reliance on this super-chilled fuel.

According to informed traders, the Pakistani state-owned company Pakistan LNG Ltd purchased a cargo for delivery at the end of July on Monday at a price of approximately $21.88 per million British thermal units. This represents the highest price the company has paid since 2022. Traders also noted that Bangladesh's state-owned procurement agency secured at least one cargo for August delivery last week at similarly elevated prices.

The cost of these spot market cargoes is roughly double what the two countries pay for LNG procured under long-term contracts with Qatar. The Gulf gas exporter has postponed plans to restore production capacity as tensions escalate again around the Strait of Hormuz.

As policymakers in the region reassess the risks of depending on Middle Eastern energy, Bangladesh is accelerating its expansion of renewable energy sources. A report indicates that authorities in Dhaka introduced a package of support measures last month, including tax exemptions for the solar industry, valid until 2035.

Bangladesh has already begun increasing its procurement of related equipment, with sustained growth in imports of photovoltaic modules and cells from China. Although the scale remains relatively limited, imports from the world's largest manufacturing nation in this sector grew by 40% in the first half of 2026 compared to the same period the previous year.