The government is planning to import three liquefied natural gas (LNG) cargoes from the spot market in late August and September to meet the growing domestic demand.

State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) has floated a tender to purchase the cargoes for the delivery windows of August 30-31, September 10-11, and September 21-22, a senior RPGCL official said. The deadline for bid submission is July 27.

The volume of the spot LNG cargo is around 3.36 million British thermal unit (MMBtu). The cargoes are to be delivered to Moheshkhali Island, with an option to discharge it at either of the country’s two floating storage re-gasification units located on the island.

Bangladesh has already bought four spot LNG cargoes for delivery in August. And if the tender is successful, the total spot LNG cargo purchase for August will rise to five. Bangladesh procured five spot LNG cargoes for July also.

The South Asian nation has been purchasing an increased volume of spot LNG cargoes over the past several months under a plan to boost natural gas supplies to industries, said the RPGCL official.

The country awarded its latest spot LNG cargo tender to Vitol Asia Pte Ltd for August 28-29 delivery window for US$12.43 per MMBtu, the official said. The RPGCL is a part of Petrobangla and looks after LNG trading in Bangladesh.

In addition to spot LNG purchases, the country has been importing LNG under long-term agreements with QatarEnergy LNG (formerly Qatargas) and OQ Trading International.

Bangladesh has been rationing gas supply to industries, power plants and other gas-guzzling consumers to cope with the mounting demand for natural gas.

The country’s total natural gas supply-local gas and imported LNG combined- stood at around 2.832 million cubic feet per day (mmcfd), including 1,022 mmcfd of re-gasified LNG, against a demand for over 4,000 mmcfd, according to official data as of July 23.
Source: Financial Express