Govt to procure 4 LNG cargoes to meet energy demand

The Cabinet Committee on Government Purchase (CCGP) on Wednesday approved procuring four cargoes of liquefied natural gas (LNG) at prices ranging from $23.98 to $28.03 per million British thermal units (MMBtu) to meet the country’s energy demand.

Of the four cargoes, three will be procured through the international quotation process while another cargo will be purchased from Saudi Aramco’s trading arm under a government-to-government arrangement.

Finance Minister Amir Khosru Mahmud Chowdhury presided over the meeting held at Bangladesh Secretariat.

The Energy and Mineral Resources Division placed the proposals before the CCGP.

Under the international Request for Quotation (RFQ) process, the 49th LNG cargo, scheduled for delivery on September 25-26, will be procured from Aramco Trading Singapore at $27.54 per MMBtu.

The 50th cargo, scheduled for October 1-2, will be supplied by BP Singapore Pte Ltd at $28.03 per MMBtu, while the 51st cargo, scheduled for October 5-6, will be purchased from Vitol Asia Pte Ltd, Singapore, at $26.6688 per MMBtu.

The committee recommended approval of the proposal to procure the three cargoes at the respective quoted prices.

Separately, the committee recommended purchasing another LNG cargo from Aramco Trading Singapore Pte Ltd at $23.98 per MMBtu.

The additional cargo will be procured under Clause 7.2(b) of the Short Term LNG Sale and Purchase Agreement (LNG SPA) signed between Aramco Trading Singapore Pte Ltd and Petrobangla under a government-to-government arrangement.

The cargo is scheduled for delivery on September 10, 2026 and will be purchased as an “Additional Quantity” under the existing agreement.

The latest approvals come as Bangladesh continues to rely heavily on imported LNG to meet the shortfall in domestic natural gas production and maintain supplies to power plants, industries and other consumers. -UNB