LNG tender reissued after spot price snag

In a renewed bid to meet its growing energy needs, state-run Rupantarita Prakritik Gas Company Ltd (RPGCL) has reissued a tender to procure two LNG cargoes for delivery later this August, after the earlier tender was scrapped due to unexpectedly high price offers.

Each cargo, containing 3.36 million British thermal units (MMBtu), is scheduled to be delivered during August 21-22 and August 28-29 to Moheshkhali Island in the Bay of Bengal, with discharge at either of the country's two floating storage and regasification units (FSRUs) located there.

The deadline for submitting bids is July 20, a senior RPGCL official said.

RPGCL has asked the selected short-listed spot liquefied natural gas (LNG) suppliers to re-submit their offers under the fresh tender.

Bangladesh has already secured two spot LNG cargoes for delivery in August, the official added.

Previously, the country purchased five spot cargoes in July and six in May-the highest in any single month so far.

RPGCL, a wholly owned subsidiary of Petrobangla, handles all of Bangladesh's LNG imports.

The country currently relies on long-term supply contracts with QatarEnergy and OQ Trading International, while topping up supplies through spot market purchases as necessary.

Bangladesh's two operational FSRUs at Moheshkhali have a combined re-gasification capacity of 1,100 million cubic feet per day (mmcfd). However, this remains insufficient as domestic gas production continues to decline.

As of July 15, 2025, total natural gas output-including domestic production and imported LNG-stood at 2,844 mmcfd, while demand was estimated to exceed 4,000 mmcfd, according to official data.

This persistent shortfall has forced the authorities to ration gas to power plants, industrial units, and other major consumers in an effort to manage the ongoing crisis.

azizjst@yahoo.com