LNG: European thirst for natural gas puts Bangladesh and Pakistan in the dark

Synopsis

The war in Ukraine significantly impacts global energy markets, leading to a surge in demand for liquefied natural gas (LNG) as European countries seek alternatives to Russian imports. Between January and September, Belgium's gas demand increases by 157%, the Netherlands by 109%, and France by 88%. However, this spike in demand raises LNG prices, making it unaffordable for many emerging economies. In Pakistan, demand drops by 19%, while India and Bangladesh see declines of 17% and 10%, respectively. Bangladesh experiences its worst blackouts in nearly a decade, leaving 100 million people without power. Muhammad Tamim from Bangladesh University of Engineering and Technology highlights the severity of the situation, noting that rolling blackouts last four to five hours, disrupting both households and businesses, particularly in the garment and textile sectors that rely on grid power and face gas shortages.