Written by The Banking Post
The government has moved to procure two more liquefied natural gas (LNG) cargoes from the spot market for delivery in July as it seeks to ensure adequate gas supply amid rising domestic demand.
State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) has floated separate tenders for the cargoes, which are scheduled to arrive during July 14-15 and July 20-21.
Each cargo will contain around 3.36 million MMBtu of LNG and will be delivered to Moheshkhali Island, where the fuel will be unloaded through either of the country’s two floating storage and regasification units (FSRUs).
If the latest tenders are successful, Bangladesh’s spot LNG purchases this year will rise to 33 cargoes. The number of spot cargoes imported in July alone will increase to seven, matching the monthly record set during April, May and June, when the country ramped up imports to avert gas shortages during the summer season.
RPGCL, the LNG trading arm of Petrobangla, has been relying more heavily on the spot market since disruptions in the Middle East prompted some long-term suppliers from Qatar and Oman to suspend deliveries under force majeure declarations, according to an official.
The country recently awarded three spot cargoes for delivery by early July to BP Singapore Pte Ltd and TotalEnergies Gas & Power Ltd at prices ranging between $18.64 and $18.84 per MMBtu.
Since starting LNG imports in 2018, Bangladesh has received nearly 600 cargoes carrying more than 37 million tonnes of LNG, according to RPGCL data.
As of June 20, the country’s total natural gas supply stood at around 2.69 billion cubic feet per day, including 1.05 billion cubic feet per day supplied from regasified LNG, according to Petrobangla data.
