Bangladesh plans additional spot LNG import in early July amid energy crisis

The government is considering importing one more spot liquefied natural gas (LNG) cargo in early July to meet the country’s natural gas demand during the upcoming monsoon.

State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) aims to purchase the spot LNG cargo for delivery within the July 2-3 window, a senior RPGCL official told The Financial Express on Monday.

The volume of the spot LNG cargo is around 3.36 million British thermal units (MMBtu).

The successful bidder will deliver the LNG cargo at Moheshkhali Island in the Bay of Bengal, with options to discharge the cargo at either of the country’s two floating storage and regasification units located on Moheshkhali Island.

If this tender is successful, the country’s total procurement of spot LNG cargoes in early July will be two in total.

The country may also seek to purchase more spot LNG cargoes in late July, the official added.

Bangladesh has so far purchased three spot LNG cargoes for June deliveries.

RPGCL is a wholly owned subsidiary of state-run Petrobangla and handles LNG trading in Bangladesh.

Bangladesh recently awarded a spot LNG cargo in a buy tender to Gunvor Singapore Pte Ltd for the June 26-27 delivery window at $12.18 per MMBtu.

Previously, the country awarded a July 2-3 delivery window spot LNG cargo to Vitol Asia Pte Ltd at $11.57 per MMBtu.

Bangladesh currently imports LNG from Qatar Energy and OQ Trading International under long-term deals and also purchases LNG from the spot market to regasify in its two operational floating storage and regasification units (FSRUs), which have a total capacity of 1.10 billion cubic feet per day (Bcfd).

The country has been facing an acute energy crisis as its natural gas output declines.

Bangladesh has been rationing gas supplies to industries, power plants, and other high-demand sectors to manage the rising demand.

azizjst@yahoo.com