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Bangladesh’s state-run Rupantarita Prakritik Gas Company Ltd (RPGCL) intends to buy three spot liquefied natural gas (LNG) cargoes by mid-May to meet the mounting demand for the summer.
The RPGCL has already floated three separate tenders for May 01-02, May 10-11 and May 16-17 delivery windows, a senior RPGCL official told The Financial Express on Wednesday.
The RPGCL might float more tenders to buy more spot LNG cargoes in late May, which is considered one of the hottest months of summer in Bangladesh, said the official.
The country’s hot summer season usually spans from March to May.
A mild heat wave is already sweeping over the districts of Rajshahi, Pabna, Naogaon, Nilphamari, Jashore, Dhaka, Faridpur, and Rangamati, and it may continue, according to the Bangladesh Meteorological Department website.
The country’s energy demand is expected to go up with the rise of mercury/Bangladesh procured four spot LNG cargoes each for March and April delivery windows, respectively.
The bid submission deadline is April 6.
The bid winners will deliver the LNG cargoes at Moheshkhali Island in the Bay of Bengal, with options to discharge the cargo at either of the country’s two floating storage regasification units (FSRUs) located on Moheshkhali Island.
The RPGCL, a wholly owned subsidiary of state-run Bangladesh Oil, Gas, and Mineral Corporation, or Petrobangla, looks into LNG trades in Bangladesh.
The volume of each of the spot LNG cargos will also be around 3.36 million MMBtu.
Bangladesh previously awarded its latest spot LNG cargo tender to TotalEnergies Gas and Power Ltd for the April 23-24 delivery window at US$14.42 per million British Thermal unit (MMBtu).
Bangladesh currently imports LNG from Qatar Energy and OQ Trading International under long-term deals and purchases LNG also from the spot market to re-gasify LNG in its two operational FSRUs, having the total capacity of 1.10 billion cubic feet per day (Bcfd). The country has been reeling from an acute energy crisis as its natural gas output is depleting.
Bangladesh has been rationing gas supply to industries, power plants and other gas-guzzling industries to cope with the mounting demand.
The country’s overall natural gas supply, however, dropped to 2,030 million cubic feet per day (mmcfd), including 765 mmcfd of re-gasified LNG, which is around 29.50 per cent less than that of one week before, during the ongoing Eid-ul-Fitr holidays as of April 1.
The country’s largest producing Bibiyana gas field, operated by US’s Chevron, is currently under 60-hour maintenance, causing a fall in gas production, sources said.