The government has decided to import a total of 23 spot LNG cargoes during the January-June 2024 instead of the previously set 13 to reap the benefits of lower prices in the international market.
The Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) has instructed the state-run Petrobangla to import 10 more cargoes, a senior Petrobangla official told the FE on Saturday.
To augment spot LNG imports, the state-backed Rupantarita Prakritik Gas Company Ltd (RPGCL) has already floated tenders to import two more spot cargoes in May to meet the mounting gas demand during summer.
Both cargoes would be supplied to Moheshkhali island, with an option to discharge them at either of the country’s two floating storage and regasification units (FSRUs), said the official.
The volume of LNG (liquefied natural gas) in each of the cargoes will be an estimated 3.36-million British thermal unit (MMBtu).
With these two, Bangladesh will be importing five cargoes for May deliveries, which is the highest number of spot purchases in a month so far since its initiation of such procurement from 25 September 2020, the official added.
The South Asian country has been importing a total of four spot LNG cargoes in April.
It has already awarded three delivery tenders to three separate suppliers for May deliveries with the purchase prices ranging below $10 per MMBTu.
It awarded the May 04-05 delivery tender to Vitol Asia Pte Ltd to supply LNG at $9.68 per MMBTu, May 09-10 delivery tender to Total Energy and Power Ltd to supply LNG at $9.89.
Gunvor Singapore Pte Ltd will supply a cargo for May 14-15 delivery window at $9.49 per MMBTu.
With May’s five, according to the official, the country will be importing a total of 16 cargoes from spot market since January 2024.
The RPGCL deals with LNG trading and necessary infrastructure in Bangladesh.
Petrobangla assumes that the purchase rate of spot LNG will continue to be lower amid a supply glut of the fuel in the international market at least for next several months, he added.
Apart from three spot cargoes, Bangladesh will be importing regular cargoes from two long-term suppliers – QatarEnergy and OQ Trading – in May to meet the mounting demand for natural gas.
Its LNG purchase price from long-term suppliers hover around $11 per MMBTu, which is above 10 per cent of the price than spot LNG, according to market sources.
Source: The Financial Express
