Govt Recommends LNG Purchase, Holds Back Fuel Deals

The Cabinet Committee on Government Purchase has recommended approval of a proposal to directly purchase liquefied natural gas (LNG) from TotalEnergies to meet the country’s energy demand.

However, the committee withheld final approval for five proposals to procure diesel, Jet A-1 and furnace oil for September-December 2026, directing authorities to negotiate with the recommended bidders over proposed premiums and base prices before finalising the deals.

The decisions were taken at a meeting of the Cabinet Committee on Government Purchase at the Secretariat on Wednesday, chaired by Finance Minister Amir Khosru Mahmud Chowdhury.

Under the LNG proposal, the government will purchase the fuel directly from TotalEnergies at a price linked to the international Japan Korea Marker (JKM). The price will be determined by adding $0.06 to the JKM price for each unit of LNG.

Meanwhile, the government proposed procuring diesel, Jet A-1 and furnace oil through international open tenders under five packages for September-December 2026.

The five packages have a combined estimated procurement cost of around Tk11,914 crore.

The committee did not give final approval to any of the packages. Instead, it directed authorities to negotiate with the recommended suppliers on the proposed premiums and base prices and submit the negotiated prices to the committee at its next meeting.

Under package PG-01, the government proposed purchasing 2.20 lakh-2.50 lakh tonnes of diesel and 50,000 tonnes of Jet A-1 at an estimated cost of Tk4,803.02 crore. Trafigura Pte Ltd has been recommended as the supplier.

Package PG-02 involves purchasing 2 lakh-2.30 lakh tonnes of diesel and 40,000 tonnes of Jet A-1 at an estimated cost of Tk4,326.89 crore. Vitol Asia Pte Ltd has been recommended as the supplier.

Under PG-03, the government proposed purchasing 25,000-50,000 tonnes of diesel at an estimated cost of Tk792.79 crore, with Unipac Singapore Pte Ltd recommended as the supplier.

Package PG-04 involves purchasing 50,000-75,000 tonnes of diesel at an estimated cost of Tk1,189.87 crore. Vitol Asia Pte Ltd has again been recommended as the supplier.

Under PG-05, the government proposed purchasing 75,000-1 lakh tonnes of furnace oil at an estimated cost of Tk801.47 crore. Trafigura Pte Ltd has been recommended for the package.

Govt to Buy 9,000 Tonnes of Chickpeas

The committee also recommended purchasing 9,000 tonnes of chickpeas through an international open tender at a total cost of Tk76.21 crore.

Including VAT and taxes, the price has been set at Tk84.67 per kg. Australian company Aust-Grain Exports, based in Horsham, Victoria, has been recommended to supply the chickpeas.

One Crore Litres of Rice Bran Oil

The government also recommended purchasing one crore litres of refined rice bran oil in two-litre PET bottles through a local open tender.

The total procurement cost is Tk181.50 crore, with the price, including VAT and taxes, set at Tk181.50 per litre.

Four companies have been recommended to supply the oil.

Green Oil and Poultry Feed Industries will supply 20 lakh litres, Pradhan Oil Mills Ltd 20 lakh litres, Majumdar Bran Oil Mills Ltd 30 lakh litres and Majumdar Products Ltd 30 lakh litres.

Majumdar Products Ltd’s portion will be worth Tk54.45 crore, while the value of supplies from the other three companies will be determined based on their recommended quantities and tendered prices.