2024-07-11 03:56:17
The Department of Energy and Mineral Resources has prepared to import one more cargo of Liquefied Natural Gas (LNG) to ensure energy security of the country. It will cost 583 crore 56 lakh 30 thousand 528 taka. Switzerland’s Total Energies Gas & Power Limited as the lowest bidder will supply these LNG.
A cargo of LNG will be imported from the spot market through the process of collection of quotations from among the signatories of the Master Sale and Purchase Agreement (MSPA) under the ‘Expedited Supply of Electricity and Energy (Special Provisions) Act, 2010 (Amendment 2021)’. This will be the 23rd phase of LNG import in 2024.
According to sources, two floating LNG terminals with a capacity of 500 mmcf per day and 600 mmcf per day regas have been set up at Maheshkhali in Cox’s Bazar to meet the increasing gas demand of the country. Currently, 2.5 MTPA of LNG is being imported from Ras Laffan Liquefied Natural Gas Company Limited (Qatargas) for a period of 15 years and 1 MTPA of LNG is currently being imported from Oman Trading International for a period of 10 years under the agreement signed with Petrobangla on G2G basis through the two terminals. Apart from this, LNG is being purchased from the spot market besides importing LNG on a long-term basis for uninterrupted gas supply to power, industry and fertilizer factories in the country. In view of this, the Minister of Power, Energy and Mineral Resources (Prime Minister) has given in-principle approval for the purchase of 32 cargoes of LNG from July 2024 to December 2024 from the spot market.
Following due process for LNG procurement from spot market, Petrobangla signed MSPA with 23 MSPA signatories based on vetting of Legislative and Parliamentary Affairs Department and in-principle approval of Cabinet Committee on Economic Affairs by preparing MSPA.
2 cargoes of LNG are required to be purchased from the spot market in July 2024 for uninterrupted gas supply to power, captive power, industrial and commercial sectors. As a result, an e-mail was sent from RPGCL on June 26 to the 23 MSPA signatories inviting tenders for the supply of 1 cargo of LNG for the month of July from the spot market. Three companies submitted their tenders within the specified period, i.e. on June 28. Total Energies Gas and Power Limited was the lowest bidder by quoting the price of LNG at USD 12.5 per unit. On the other hand, Vital Asia Pvt Ltd quoted USD 13.48 and Gunvar Singapore Ltd quoted USD 15.15.
Government Procurement has accepted the price (US$12.5/MMBTU) offered by Total Energies and Power Ltd., the company offering the lowest overall price, considering the recent increase in LNG prices in the spot market and uninterrupted supply of gas to power plants, fertilizers and industrial sectors. It is recommended to send it to the Cabinet Committee.
Taking into consideration the price proposed by Total Energies Gas and Power Limited, the company offering the lowest price, the total expenditure including VAT-tax will be 583 crore 56 lakh 30 thousand 528 taka for the purchase of 32 lakh 55 thousand MMBTU LNG with 5 percent operational tolerance.
A procurement proposal in this regard will be presented in the next meeting of the Cabinet Committee on Government Procurement under the chairmanship of Finance Minister Abul Hasan Mahmud Ali.