2024-03-13 08:00:06
For the last few years, LNG has to be imported from abroad to meet the increasing gas demand in the country. As part of this, the Ministry of Power, Energy and Mineral Resources has taken the initiative to import 4 cargoes of LNG through four separate quotations. The total cost will be 1 thousand 637 crore 43 lakh 22 thousand taka. Of these, Accelerate Energy LP of the US will supply 1 cargo, Singapore-based Gunvar Pvt Ltd one cargo and Singapore’s Vital Asia 2 cargoes of LNG.
According to sources, two floating LNG terminals with a capacity of 500 mmcf per day and 600 mmcf per day have been set up at Maheshkhali in Cox’s Bazar to meet the existing and increasing gas demand of the country. A total of 3.5 MTPL of LNG is currently being imported from Qatargas for a period of 15 years and 1.0 MTPL for a period of 10 years from Oman under the agreement signed with Petrobangla on G-to-G basis through these two terminals. Besides, LNG is being procured from the spot market besides importing LNG on a long-term basis for uninterrupted gas supply to power, industry and fertilizer plants in the country. In view of that, the Minister (Prime Minister) of the Ministry of Power, Energy and Mineral Resources has given in-principle approval for the purchase of a total of 13 cargoes of LNG from the spot market from January to June 2024.
Petrobangla finalized the MSPA with 23 MSPA signatories on the basis of vetting by the Legislative and Parliamentary Affairs Department and in-principle approval of the Cabinet Committee on Economic Affairs by preparing the Master Sale and Purchase Agreement (MSPA) following due process for the purpose of purchasing LNG from the spot market.
Tenders are being accepted through LNG Spot Purchase (LSP) software instead of accepting bids directly or through courier services due to Covid-19. In view of that, tenders are invited through the software for importing LNG cargo from the spot market from 2020.
Note that a total of 68 tenders were invited in 5 years from 2020 to 2024. Of these, 59 cargoes of LNG have been approved by the Cabinet Committee on Public Procurement.
According to sources, 5 cargoes of LNG are required to be procured from the spot market in April 2024 for uninterrupted gas supply to power, captive power, industrial and commercial sectors.
It should be noted that the variation in the price of LLG has been observed in the spot market for the past few months. As a result, an e-mail was sent from RPGCL to MSPA signatories on March 4 calling for bids for supply of 1 cargo of LNG for the month of April 2024 from the spot market. As only one company submitted bids and there was ample time to call for bids again, 3 companies participated to make LNG import prices more competitive. Among them, Accelerate Energy LP of the United States will supply one cargo of LNG as the lowest bidder at USD 9.7858 per unit of LNG. It will cost 423 crore 16 lakh 93 thousand 65 taka.
Besides, Singapore-based M/s Gunavar Private Limited will supply one cargo of LNG in the same manner. The price per unit is 9.3690 US dollars and it will cost 405 crore 14 lakh 55 thousand 408 taka. One cargo of LNG from Singapore-based Vital Asia will cost 409 crores 51 lakhs 31 thousand 44 taka per unit of LNG at USD 9.4700. Another cargo of LNG will be procured from the same company i.e. Vital Asia at USD 9.2388 per unit of LNG. It will cost 39 crore 51 lakh 52 thousand 761 taka.