BD to ramp up LNG imports in April

Bangladesh is expected to increase further the import of liquefied natural gas (LNG) in April as it has planned to purchase a total of eight cargoes in the month, 14.28-per cent higher than that of March.

The country will require an estimated US$450 million (equivalent to around Tk 45 billion) to import the increased quantity of the energy, meant for meeting a mounting demand for fuel in the industries and power plants, according to a senior Petrobangla official.

Of the total, he said, six cargoes will be bought from long-term suppliers and two from the international spot market, which currently remains at low ebb. Qatargas will supply four cargoes and Oman Trading International or OTI two cargoes in April.

For the two spot cargoes to be purchased next month, state-run Rupantarita Prakritik Gas Company Ltd (RPGCL) that looks after LNG trading in Bangladesh, has already floated a tender to buy an LNG cargo for early April delivery.

The RPGCL, a wholly owned subsidiary of the state-owned Petrobangla, is seeking delivery of one spot LNG cargo on April 6-7.

Bangladesh purchased the latest spot LNG cargo from Vitol Asia Pte Ltd at US$16.10 per million British thermal unit (MMBTu) for a March 30-31 delivery to the Moheshkhali floating storage and re-gasification unit (FRSU).

The highest bid among several other suppliers including Gunvor Singapore, Excelerate Energy and TotalEnergies were above $18 per MMBTu to supply around 3.20 million MMBTu, said sources.

Japanese energy company JERA was awarded a bid to supply another cargo from the spot market to Bangladesh at $16.50 per MMBtu for a March 11-12 delivery to the Moheshkhali FSRU, where the highest bid among other suppliers was $21 per MMBTu.

Bangladesh received its first spot LNG cargo for 2023 over February 21-22 from TotalEnergies at $19.78 per MMBtu to the Moheshkhali FSRU, which was also awarded in a bidding round in which the highest bid received was around $24 per MMBTu.

Bangladesh's Brent crude-linked purchasing cost of LNG from Qatargas and OQ currently hovers around US$10.50/ MMBTu considering Brent-crude price at US$85 per barrel.

Bangladesh's overall natural gas supply now hovers around 3,004 million cubic feet per day (mmcfd) with re-gasified LNG of around 802 mmcfd, according to Petrobangla data as on March 4, 2023.

Before ceasing LNG import from the spot market from July last year, Bangladesh had imported its last LNG cargo for June 22-23, 2022 delivery to its Moheshkhali FSRU from Gunvor Singapore Pte Ltd at S$24.75 per MMBTu.

"Bangladesh will start importing increased quantities of LNG regularly from the spot market in March," Petrobangla Chairman Zanendra Nath Sarker said earlier.

The country has a target to boost overall natural-gas output to more than 3,000 mmcfd as industries seek uninterrupted gas supply to keep their wheels rolling on a full scale in the process of a rebound, he said.

Bangladesh raised the natural gas tariffs by up to 178.88 per cent from February 01 to secure funds for importing increased quantities of LNG and to meet the growing domestic demands, especially in industries, and ensure uninterrupted supply of gas to the consumers.

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