Tender issued again to buy one spot LNG cargo

The government has reissued a tender to purchase one spot LNG cargo for the June 26-27 delivery window to meet growing summer demands in industries and power plants.

State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) reissued the tender last week to buy the cargo having a volume of around 3.36 million British thermal units (MMBtu).

The bid winners will deliver the LNG at Moheshkhali island in the Bay of Bengal, with options to discharge at either of the country's two floating storage re-gasification units located on Moheshkhali island.

The RPGCL reissued the tender after cancelling the previous one as it had received higher-than-expected price proposals from the suppliers, said a senior RPGCL official.

If this tender becomes successful, the country's total buying of spot LNG cargoes in June will be three, which is half of May purchases, he said.

Bangladesh purchased six spot LNG cargoes for May deliveries, which is the highest in a single month so far this year.

The country projected less LNG demand in June when the temperature is expected to fall with monsoon rainfall, said the RPGCL official.

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

Bangladesh recently awarded two spot LNG cargo tenders to Vitol Asia Pte Ltd for May 30-31 and July 2-3 delivery windows at $11.44 per MMBtu and $11.57 per MMBtu respectively.

In addition to spot LNG cargoes, Bangladesh has been importing LNG from its two existing long-term suppliers - QatarEnergy LNG (formerly Qatargas) and OQ Trading International - for regasification at its two operational floating, storage and re-gasification units (FSRUs).

Azizjst@yahoo.com