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The interim government is eyeing to float an international tender afresh to seek expressions of interest (EoIs) from interested global players for the supply of liquefied natural gas (LNG) on a spot basis.
Officials said the state-owned Rupantarita Prakritik Gas Company Ltd (RPGCL), a wholly-owned subsidiary of Petrobangla, would float the tender soon.
The RPGCL is now carrying out all necessary work, including vetting from law ministry, before inviting the bid.
It will float the tender seeking EoIs in line with the government's policy to continue importing LNG through both long-term contracts and spot deals.
Currently, a total of 23 LNG suppliers are shortlisted by the RPGCL for supplying LNG from the spot market.
The RPGCL sought prices from all of them for purchasing LNG from the spot market, but only half a dozen suppliers took part in the bidding.
The government has moved afresh to float tender to ensure that more such global suppliers participate in the bidding and the purchasing price of LNG from the spot market becomes competitive.
Sources said the Energy and Mineral Resources Division under the Ministry of Power, Energy and Mineral Resources has not decided yet whether the existing 23 listed suppliers will be removed from the suppliers' list or not.
Like the existing ones, the RPGCL has planned to pick up a pool of LNG suppliers who would be interested in supplying LNG on a spot basis in line with the RPGCL's request, they added.
The shortlisted suppliers would be requested to submit price quotations for supplying LNG time to time, when Petrobangla would feel necessary, he said elaborating the process of buying LNG under spot terms.
LNG would be purchased from those shortlisted firms, whose offer would be best suited from the funds of the government of Bangladesh, the sources added.
They would be asked to supply lean LNG as per specification on a delivered ex-ship basis to LNG terminals-floating, storage and regasification units (FSRU) and land-based LNG terminal-of Petrobangla near Moheshkhali Island or any other place in Bangladesh.
LNG suppliers will be shortlisted based on but not limited to the age of the firm, historical LNG delivery experience both in FSRU-based and land-based terminals, and ability to delivery lean LNG.
Shortlisted LNG suppliers will be notified and provided with draft master sale and purchase agreement, and draft confidentiality agreement, which would be required to be signed for selection.
The interested LNG suppliers may either be a single or joint venture of more than one firm or associate firm may also be included, if necessary.
The imported spot LNG should have a gross heating value ranging 1,025-1,100 British thermal unit (Btu) per standard cubic feet, according to sources.
The imported spot LNG would require to be blended with locally produced natural gas, which is sulfur-free and sweet gas, before it is delivered to end-users.
The selected firms would supply LNG on a delivered ex-ship basis and the vessel size should range between 125,000 and 220,000 cubic metres.
Sources said the RPGCL would buy spot LNG based on market prices, availability of terminals, increased regasification capacity and downstream demand.
The RPGCL is in charge of the LNG purchase for the country.