RPGCL reissues tenders to buy two spot LNG cargoes

State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) has reissued tenders to purchase two spot LNG cargoes for February 27-28 delivery and March 05-06 delivery windows.

The bid winners will deliver the LNG cargoes 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 (FSRUs) located on the island, said a senior RPGCL official.

The RPGCL, a wholly owned subsidiary of state-run Bangladesh Oil, Gas, and Mineral Corporation, or Petrobangla, oversees LNG trades in Bangladesh.

The South Asian country initially floated the tenders for the two spot LNG cargoes in late January and cancelled both of them, as the bid prices were higher than expected – ranging above US$16 per million British Thermal unit (MMBTu).

The RPGCL re-issued the tenders on February 4 with the bid submission deadline ending on February 9.

The volume of each of the spot LNG cargo will be around 3.36 million MMBtu.

Bangladesh previously awarded its latest spot LNG cargo tender to Vitol Asia Pte Ltd for February 13-14 delivery window at US$13.82 per MMBTu, the RPGCL official said.

Apart from spot LNG cargoes, Bangladesh has been importing LNG from its two existing long-term LNG suppliers – Qatargas and OQ Trading International – for regasification in its two operational FSRUs.

Officials said Bangladesh will have to depend more on the volatile spot market this year to import costly LNG to feed mounting demands from industries, power plants and other gas-guzzling consumers as domestic natural gas output is on the wane.

This year, for the first time, the government has planned to source a major portion of LNG from the spot market rather than long-term LNG suppliers this year.

A senior Petrobangla official said Petrobangla has planned to import a total of 115 LNG cargoes – 59 from the spot market and 56 from long-term suppliers – marking a 33.72 per cent increase compared to the previous year.

Last year, the country imported a total of 86 LNG cargoes – 56 from long-term suppliers and 30 from spot market— the official added.

The country has been importing the same number of LNG cargoes from its two existing long-term LNG suppliers Qatargas and OQ Trading International over the past three years when the LNG demand across the world grew after initiation of Russia-Ukraine war, said the RPGCL official.

Of the total long-term LNG cargoes for 2025, Qatargas will supply 40 LNG cargoes and OQ Trading will supply 16 LNG cargoes. The regular size of an LNG cargo is 138,000 cubic metres.

Considering the current market price, Bangladesh has to pay US$45-50 million to import one spot LNG cargo from the international market.

The country’s overall natural gas output currently hovers around 2,707 mmcfd, of which around 821 mmcfd is re-gasified LNG, according to official Petrobangla’s data as of February 5, 2025.

Azizjst@yahoo.com