Govt adds 8 more firms as LNG suppliers from spot market

The government will be expanding its list of supplier companies for the procurement of liquified natural gas (LNG) from the spot market at competitive prices amid a global dearth of energy fuel in the country.

Eight more companies will be included in the list of existing 16, increasing the number of signatory firms to 24, Cabinet Division Additional Secretary Sayeed Mahbub Khan said on Thursday.

The approval came from the 24th meeting of the Cabinet Committee on Economic Affairs (CCEA) in this year held virtually with Finance Minister AHM Mustafa Kamal in the chair.

Under the proposal moved by the Petrobangla under the Energy and Mineral Resources Division, a Master Sale and Purchase Agreement (MSPA) has already been signed with the eight companies.

The newly added firms are LNG Japan Corporation, Japan; Socar Trading UK Ltd.; POSCO International Corporation, Korea; Qatar Energy Trading LLC; Inpex Corporation, Japan; Pavilion Energy Trading & Supply Pte Ltd. Singapore; PetroChina International Pte Ltd. Singapore; and PTT International Trading Pte Ltd, Singapore.

The additional secretary said that increasing the number of companies under MSPA will make the LNG procurement process more competitive.

However, he informed import of LNG from the spot market is now suspended due to an abnormal price hike of LNG in the global market.

Bangladesh’s overall natural gas supply now hovers around 3,100 mmcfd with re-gasified LNG standing around 800 mmcfd, against the demand for over 4,100 mmmcfd, according to Petrobangla.

Bangladesh’s current buying prices of LNG from term suppliers hover around $14 per MMBTU, considering the Brent crude price at around $108 per barrel.

The country imports half a dozen LNG cargoes from two long-term suppliers - Qatargas and Oman Trading International, or OTI.

Petrobangla started importing LNG from a long-term supplier in September 2018.

It started importing LNG from the spot market in September 2020, two years after it had initiated importing LNG from long-term suppliers.