Bangladesh ramps up coal-fired output on LNG shortages

: Coal
26/03/17

Bangladesh has ramped up coal-fired power generation this month so far, as the country faces an acute LNG shortage triggered by disruptions to shipments from the Mideast Gulf caused by the US/Israel–Iran war.

Coal-fired power generation in Bangladesh has risen despite costing almost double that of gas-fired generation, data from the country's power grid show. Bangladeshi coal-fired power generation is estimated to cost $53,294/GWh, compared with around $28,453/GWh for gas.

Coal burn could rise further this month, as LNG imports are set to fall sharply.

Bangladesh's LNG imports remained steady on the year at 337,000t over 1-17 March, data from analytics firms Kpler and Vortexa show. But only one vessel carrying 74,000t of LNG is signalling for arrival in Bangladesh over the rest of month, indicating monthly receipts will fall short of the 563,000t imported in March last year. The year-on-year shortfall is equivalent to about two LNG cargoes.

Around 6.6GW of gas-fired generation capacity in Bangladesh is facing fuel shortages, state-owned power grid reports show. Bangladesh has increased its power imports from India's 1.6GW Godda coal-fired plant since October, putting additional pressure on its foreign exchange balances.

In contrast, thermal coal imports have risen, with total arrivals set to be nearly 7pc higher on the year at 1.5mn t in March, Kpler data show. Bangladesh typically purchases Indonesian coal but has recently also bought small amounts of South African coal. About 608,000t of Indonesian coal has discharged in Bangladesh this month so far, alongside 55,000t from South Africa. A further 837,000t of material from Indonesia is scheduled to arrive in Bangladesh over the rest of March, according to preliminary fixtures.

The country purchases Indonesian thermal coal of GAR 5,000 kcal/kg and above, a trader said. Argus assessed Indonesian GAR 5,000 kcal/kg coal at $72.46/t fob on 13 March, up from $69.60/t before the conflict in the Mideast Gulf began. Low and mid-calorific value Indonesian coal prices are also elevated because of uncertainties surrounding mining firms' 2026 production quotas.

"Brokering into Bangladesh is not easy because of payment issues and negotiating letters of credit from banks," a trader said. The country's reliance on overseas supply continues to strain its foreign exchange reserves and is raising concern among exporters.

The war in the Mideast Gulf has led to state-owned gas distributor RPGCL awarding spot cargoes at much higher prices than usual. It awarded a 15-16 March delivery cargo to trading firm Gunvor at $28.28/mn Btu, and another for 18-19 March shipment to trading firm Vitol at $23.08/mn Btu, traders said. Bangladesh was last in the spot market late last year, securing a cargo for 4-5 January delivery at $10.37/mn Btu from TotalEnergies, and a 9-10 January delivery cargo from South Korean trading firm Posco at $9.99/mn Btu.

By Ashima Sharma and Irfan Jaafar

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

26/03/16

US in talks to boost Kazakh coal sector

London, 16 March (Argus) — Kazakhstan's energy ministry is in talks with the US over developing the country's coal sector and other ways to maintain energy security, according to an official Kazakh government release. Kazakh energy minister Yerlan Akkenzhenov today met the US ambassador to Kazakhstan, Julie Stufft, to discuss increasing co-operation between the two countries in the energy sector. Discussions included ways in which Kazakhstan can develop its coal processing and expand "clean coal" technologies to boost the efficiency of coal-fired generation and reduce environmental impacts. The parties also discussed partnerships with US firms, including oil majors Chevron and ExxonMobil, to develop oil and gas projects at three of the country's major producing fields — Tengiz, Kashagan and Karachaganak. Other topics for discussion were how to maintain stable export routes from Kazakhstan and developing projects to produce ammonia, urea, synthetic gas and diesel. Kazakhstan has in the past year received investment from China and Russia to develop its coal sector, but the meeting today marked the first sign of official interest from the US in the rapidly growing Kazakh sector. Global energy security concerns have been pushed to the fore by the US/Israel-Iran war , with oil and gas supplies from the Mideast Gulf disrupted by the effective closure of the strait of Hormuz. Kazakhstan has been focusing on ways to utilise its 33bn t of coal reserves as part of the country's national project to expand coal-fired power capacity starting this year. By Shreyashi Sanyal Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Indian cement firms increase domestic coal use in Feb

26/03/16

Indian cement firms increase domestic coal use in Feb

Singapore, 16 March (Argus) — Domestic thermal coal supplies to Indian cement makers rose sharply in February, both year on year and month on month, as producers expanded their coal consumption to benefit from its cost advantage amid a surge in seaborne petroleum coke and coal prices. Cement makers received 1.36mn t of domestic coal in February, up by about 85pc from a year earlier, coal ministry data show. Receipts rose by almost 29pc on the year to 9.6mn t in April 2025-February 2026 — the first eleven months of India's April 2025-March 2026 fiscal year. Receipts rose by 43pc from 950,000t in January, even though the month had fewer working days. Domestic coal prices are regulated and largely insulated from fluctuations in the seaborne market. Meanwhile, delivered prices for seaborne coke rose sharply, prompting producers to increase their use of domestic coal. The Argus -assessed index for 6.5pc-sulphur coke delivered India averaged $124.25/t in February, up by $6.63/t from January, primarily due to an increase in fob prices. The cfr India 6.5pc coke market was last assessed at $145/t on 11 March. Cfr offers of US high-sulphur coke jumped sharply after the US-Iran war disrupted supplies of Saudi coke and pushed up freight rates. Trades for April-loading high-sulphur US coke on Supramax vessels have been scarce so far, but offers have been indicated at more than $150/t for India's west coast. Offers of US Northern Appalachian NAR 6,900 kcal/kg coal — a preferred alternative to coke — have also been scarce, but a Panamax cargo likely sold to an Indian cement maker for end-of-April loading at $145/t cfr — although the port of delivery was not known and this trade could not be immediately verified. Higher prices and reduced availability could push Indian cement makers to continue to look for cheaper fuel alternatives, including domestic coal. The removal of a 400 rupees/t ($4.33/t) levy on coal from September has further encouraged coal use. And higher domestic coal availability has enabled cement plants to increase coal's share in their fuel mix, while reducing imports. Plants can switch between coal and coke depending on cost. Indian cement makers imported just 382,300t of coke in January, down by 55pc from a year earlier and by 51pc from December, according to shipbroker Interocean. Firm cfr prices and offers of seaborne coke have prompted many cement plants to increase their domestic coal intake, although producers still need to blend coke in certain ratios to use local coal effectively. "We have started using a good amount of domestic coal in our plants and this has helped us offset the impact of the rise in coke prices," leading cement maker Nuvoco Vistas managing director Jayakumar Krishnaswamy told investors in January. Nuvoco Vistas cut its coke use to 41pc in October-December from 48pc in the corresponding quarter of 2024. Indian coal supplies to non-power consumers, such as cement plants and steel mills, increased in the first eleven months of the 2025-26 fiscal year, because of higher availability and lower demand from coal-fired power plants. Higher domestic coal supply to cement plants and a partial replacement of coke use limited India's overall appetite for imported coke last year. Indian cement makers imported 10.67mn t of coke from origins including the US and Saudi Arabia in 2025, down slightly from 10.83mn t a year earlier, according Interocean. By Ajay Modi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US oil sector warns against export restrictions

26/03/13

US oil sector warns against export restrictions

Washington, 13 March (Argus) — A spike in gasoline and diesel prices triggered by the US-Israel war with Iran has prompted oil industry officials to preemptively argue against potential calls for the reinstatement of crude export restrictions the US lifted more than a decade ago. Oil industry officials see no indications that President Donald Trump or other policymakers are considering a ban on exports, which they say would cause chaos in global markets and cut off energy supplies to allies when they need it most. In 2015, the industry successfully lobbied the US Congress to lift export limits that had been in place for decades, opening up a US crude export market that averaged 4mn b/d last year. "We don't believe the idea of banning domestic exports is being considered seriously, nor should it be," an oil industry official said. "The US doesn't have a supply problem, and halting exports only hurts our economy." But the recent surge in fuel prices — retail diesel prices rose by nearly $1/USG in the week ending on 9 March, and regular grade gasoline increased by nearly 50¢/USG — has put the industry on the defensive. Banning exports would likely result in an oversupply of light sweet crude in shale producing areas such as the US Gulf coast, where most of the region's refineries are optimized to process sour crude, according to industry leaders. "Pulling American oil off the world market would further tighten global supply and could trigger cascading economic consequences for consumers," American Petroleum Institute chief executive Mike Sommers said in a series of posts on X that attacked "bad policy ideas" of restricting exports. US energy secretary Chris Wright said during an interview on CNN on Thursday there was "no discussion" in the administration on banning oil exports. Trump, who has spent his second term focused on achieving "energy dominance", the same day said the ramp-up in oil prices would result in a financial benefit to the US. "The United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money," Trump wrote on his social media platform. But the administration's approach on a separate energy policy lever has already shifted. As recently as last week, administration officials said they were not considering the release of crude from the US Strategic Petroleum Reserve (SPR). That stance changed as sustained Iranian attacks on ships near the strait of Hormuz drove up oil prices. Trump on Wednesday ordered the release of 172mn bl of crude from the SPR, the second-largest release since the reserve was created. Reimposing a ban on crude exports could create a "short-run bonanza" for US refineries that specialize in processing light sweet crude, which they could buy at a discount, economists at the US Federal Reserve Bank said in a research report in 2022. But those dynamics would not last because lower prices would lead shale producers to cut output, according to the report, and domestic fuel prices would be unchanged as long as refiners could export refined products. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Indonesian supply, war may reshape Vietnam coal imports

26/03/13

Indonesian supply, war may reshape Vietnam coal imports

Hanoi, 13 March (Argus) — Vietnam is reviewing coal supply security ahead of the dry season as availability of seaborne cargoes from Indonesia remains tight and the US-Israel war with Iran exacerbates volatility in international coal markets. Officials at coal, power and coal trading companies in Vietnam told Argus that discussions are under way to assess summer power and coal demand with projections of a sharp increase in temperatures across the country. Vietnam relies heavily on imports, as seaborne receipts meet more than half of its coal requirement. The concerns in Vietnam reflect a broader trend in Asia with the World Meteorological Organisation pencilling in a potential El Nino event during this summer, which could lead to higher global temperatures and a sharp increase in power demand. India is already making preparations to ensure stable power supply to meet peak demand . The review in Vietnam comes at a time when there is lack of clarity over the production and supply outlook from Indonesia , a key source of seaborne coal for Vietnam. This is also pushing Hanoi to consider diversifying sources and exploring markets such as the US, while also looking at possibilities of raising purchases from Laos, officials said. But higher freight rates following the Middle East conflict are weighing on plans to seek coal from far-off origins. The conflict and disruptions to the LNG supply chain has also potentially raised competition for Vietnamese utilities in procuring mid-to-high calorific value (CV) coal, with some countries looking to boost coal stocks to support an expected increase in coal-fired generation and decline in natural gas-powered generation. Mid-CV coal is typically preferred by Vietnamese utilities with coal-fired generation, accounting for the bulk of the country's total power supplies, although some plants buy higher-CV coal from countries including Indonesia and Australia. Hydropower output could decline during the dry season, aggravating coal burn and fuel demand at utilities to meet power demand. Fuel security is more important for Vietnamese utilities as escalations in costs are generally a pass-through in power tariffs, an official with a generating company said. But authorities closely monitor power tariffs to ensure power is affordable, and any sharp increase in electricity prices because of higher cost of generation could lead to partial or full shutdown of a power plant. "So, the situation is very complicated," the official added. State-owned coal producer and importer Vietnam National Coal and Mineral Industries (Vinacomin) is also cautiously evaluating its seaborne purchase plans for supplying blended domestic and imported coal to utilities and other end users in the volatile market. Domestic stocks, imports Vinacomin and power utilities have stable coal stocks following a year of strong hydropower generation and broadly steady imports and domestic output, giving some cushion to authorities to plan coal sourcing ahead of the dry season. The imports have also been supported in recent years by regular utility tenders and seaborne coal purchases by Vinacomin from origins such as Australia, South Africa and Laos for blended supplies to a number of utilities to meet specific technical requirements of boilers. Vinacomin has also signed an agreement with state-owned utility EVN this year to supply Indonesian coal to state-owned plants that run on imported coal until 2047 as part of plans to centralise fuel procurement. State-owned producer Dong Bac would also import coal to supply to utilities. The demand for imported coal as well as electricity is expected to rise in line with Vietnam's plans to grow its economy by over 10pc this year and expand its overall energy-intensive manufacturing capabilities. The increase in imports in the coming years would be led by utility demand and purchases by Vinacomin as well as Dong Bac, and expansion in industrial coal consumption. Vinacomin's imports could rise to 13mn t in 2026 and 17mn t in 2027 from around 10mn t in 2025, another official said. But traders said the pace of import growth could vary depending on factors such as hydropower and renewable power output, availability from key exporting countries and international coal prices. Vietnam's demand for seaborne coal declines when international coal prices rise, while it emerges as a key buyer in a weak price environment. Vietnam imported a record 65.43mn t of coal in 2025 , surpassing the previous high recorded in 2024, according to preliminary customs data. The widely used Indonesian GAR 4,200 kcal/kg coal was assessed by Argus for Supramax vessels at an average price of $45.17/t in 2025, down by about 15.6pc from a year earlier. Indonesia was one of the largest suppliers of seaborne coal to Vietnam. By Saurabh Chaturvedi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US trade deficit narrows by 25pc in January

26/03/12

US trade deficit narrows by 25pc in January

Houston, 12 March (Argus) — The US trade deficit narrowed in January to its lowest in three months, as exports grew faster than imports. The US trade deficit in goods and services fell to a seasonally adjusted $54.4bn in January, down from $72.9bn in December, the Bureau of Economic Analysis (BEA) reported Thursday. The deficit in goods fell from December by $17.5bn to $81.8bn. The services surplus widened by $1bn to $27.3bn. Compared with January 2025, the total deficit shrank by 58pc. President Donald Trump launched a raft of tariffs on 2 April last year, "Liberation Day," citing emergency powers, before suspending the highest reciprocal tariffs in a bid to negotiate bilateral trade deals or gain leverage for sometimes unrelated deals. The ensuing uncertainty in US trading relations, along with scattershot diplomatic sorties, including lashing out at allies and adversaries alike, has scrambled supply chains, corporate investment and hiring plans and spending patterns, helping to undermine the dollar and US debt markets. The trade-weighted dollar has depreciated by about 2pc so far this year following an 8pc depreciation last year, according to Oxford Economics. A weaker dollar supports US exports and makes imports more expensive. The US trade deficit edged higher to $911bn last year from $904bn in 2024, with the goods deficit rising to $1.24 trillion from $1.215 trillion the prior year. The full trade deficit peaked at $923bn in 2022, up from $837bn the prior year, before falling to $774bn in 2023, according to BEA data. Total US exports in January rose to $302bn, $15.8bn more than in December, while imports were $356bn, $2.6bn less than in December. "Imports would normally be rising, so their recent stagnation suggests that the tariffs have depressed demand somewhat, in favor of domestic production, but the returns are minimal in the context of the pain of higher costs inflicted on businesses and households," Pantheon Macroeconomics said in a note. "The overall deficit in January was essentially unchanged from its Q4 average of $53.3B, suggesting that net trade will have little bearing in GDP growth in Q1." Exports of goods increased on the month by $14.6bn to $195.5bn in January, while imports of goods fell by $2.8bn to $277bn. Exports of services increased by $1.2bn to $106.7bn, and services imports rose by $23bn to $79.3bn. Petroleum trade slows US exports of crude and petroleum products, including natural gas liquids, fuel oil and others on an end use basis, totaled $20.6bn in January, down from $21.1bn in December, with imports at $15.5bn in January, down from $16.2bn the prior month, the report said. Exports of crude averaged 3.9mn b/d in January, with imports at 6.1mn b/d the same month. The US had a $19bn deficit with Vietnam in January, a $12.9bn shortfall with Mexico and a $12.5bn deficit with China, a $6.1bn deficit with the EU and a $6bn deficit with South Korea, a $5.5bn deficit with Japan and a $4.9bn shortfall with Germany. The US deficit with Canada was $2.7bn in January. The US had a $7bn surplus with the UK, a $6.4bn surplus with the Netherlands, a $4.5bn surplus with central and south America, a $2.2bn surplus with Saudi Arabia and a $1.8bn surplus with Brazil. For 2025, the US showed surpluses of $61bn with Netherlands, $52bn with south and central America — including $14bn with Brazil — $32bn with the UK, and $28.5bn with Hong Kong. The average US tariff rate on imports rose to 13pc by the end of last year from 2.6pc at the beginning of the year, according to a Federal Reserve Bank of New York study released late last year. US firms and consumers bear 90pc of the economic burden from the tariffs, the New York Fed study said. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more

Bangladesh ramps up coal-fired output on LNG shortages

Related news posts

US in talks to boost Kazakh coal sector

US in talks to boost Kazakh coal sector

Indian cement firms increase domestic coal use in Feb

Indian cement firms increase domestic coal use in Feb

US oil sector warns against export restrictions

US oil sector warns against export restrictions

Indonesian supply, war may reshape Vietnam coal imports

Indonesian supply, war may reshape Vietnam coal imports

US trade deficit narrows by 25pc in January

US trade deficit narrows by 25pc in January

Argus International Coal Forward Curves

Argus Coal Daily International

Argus Seaborne Coal Outlook

Business intelligence reports