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The government on Wednesday approved proposals for procurement of three cargoes of liquefied natural gas (LNG) from two Singapore-based companies.
The Cabinet Committee on Public Purchase gave the approval at a meeting at the Cabinet Division's conference room with Finance Minister Abul Hassan Mahmood Ali in the chair.
Briefing newsmen after the meeting, Cabinet Division Additional Secretary Sayeed Mahbub Khan said procurement of three cargoes of LNG from spot market will cost the exchequer a total of Tk12.741 billion.
Under an approval, the Petrobangla will import two cargoes of LNG from M/s Golbar Singapore Pvt Ltd where each cargo or 3.36 million MMBtu LNG will cost Tk4.25 billion.
In this purchase, each unit of LNG will cost $9.847, lower from $9.93 in the previous purchase from the spot market.
Under another approval, the Petrobangla will import one cargo LNG from M/s Vitol Asia (pvt) Limited, Singapore at a cost of Tk4.224 billion with each unit costing $9.77.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid after the meeting told newsmen that since price has lessened at the spot market the government now prefers to import LNG from there instead of long-term suppliers.
He explained that Bangladesh buys 60 per cent LNG from long term suppliers and 40 per cent from spot market.
Mr Hamid said presently price of per unit of LNG under long-term agreement stands at around $12 whereas at spot market the price is $9 or so.
"We will need huge gases as summer season is approaching," he said adding, "We have to keep our gas-based power plants operational," Mr Hamid added.
The government kept suspended importing LNG from spot market between July 2022 and January 2023 period as LNG price shot up significantly at the spot market.
Moreover, the dollar crisis had forced the government to stop LNG import thus in last summer the operation in many gas-based power plants had remained suspended.
The cabinet committee also approved appointment of a contractor to set up well-head compressor at Srikail Gas Field in Cumilla.
Moreover, the committee also approved two purchase proposals of the Ministry of Shipping for dredging works by cutter suction dredgers for old the Brahmaputra River.