Fresh tender floated to purchase one more spot LNG cargo

State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) has floated a fresh tender to purchase one spot LNG cargo during the second week of July to feed growing demand in gas-guzzling power plants and industries.

The RPGCL intends to buy the spot liquefied natural gas (LNG) cargo for the July 11-12 delivery window, a senior RPGCL official told The Financial Express Thursday.

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

The bid submission deadline is May 25.

The bid winner 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 re-gasification units located on Moheshkhali island.

If this tender becomes successful, the country's total buying of spot LNG cargoes in early July will be three.

The country might seek to buy more spot LNG cargoes in late July, said the official. Bangladesh has purchased three spot LNG cargoes for June deliveries.

RPGCL is a wholly-owned subsidiary of state-run Petrobangla and looks into LNG trades in Bangladesh.

Bangladesh previously awarded one spot LNG cargo for July 2-3 delivery window 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 purchases LNG also from the spot market to re-gasify in its two operational floating, storage and re-gasification units (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.

Azizjst@yahoo.com