2024-10-02 23:22:12
The Ministry of Power, Energy and Mineral Resources has taken the initiative to import two cargoes of LNG from the spot market through two separate purchase proposals to meet the country’s energy needs. A total of 67,20,000 MMBTU of LNG will be imported in two cargoes of 33,60,000 MMBTU per cargo. The total cost to import 2 cargoes of LNG through international quotation will be 1 thousand 289 crore 74 lakh 80 thousand 960 taka. The LNG will be supplied by Singapore-based Gunvor Singapore Private Limited.
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. Currently 2.5 MTPA of LNG from Ras Laffan Liquefied Gas Company Limited (Qatar Gas) over 15 years and 1.0 MTCA over 10 years from Oman Trading International (now OQT) under agreement signed with Petrobangla on G2G basis through two terminals. LNG i.e. a total of 3.5 MTPA of LNG is being imported. Apart from long-term import of LNG for uninterrupted supply of gas to electricity, industry and fertilizer factories in the country, LNG is also being purchased from the spot market.
The process of purchasing LNG from the spot market was done under the ‘Promptly Increasing Supply of Electricity and Energy (Special Provisions) Act, 2010’. Following the due process under this Act, Petrobangla signed the MSPA with 23 MSPA signatories after preparing the Master Sale and Purchase Agreement (MSPA) after obtaining vetting by the Legislative and Parliamentary Affairs Department and in principle approval of the Cabinet Committee on Economic Affairs. Since 2020, the process of purchasing LNG from the spot market using the LNG Spot Purchase (LSP) software developed by Petrobangla and the list of MSPA signatories has been ongoing.
On August 18, 2024, the Ministry of Power, Energy and Mineral Resources instructed that all negotiations, project selection processing and procurement processing activities under the ‘Rapid Supply of Electricity and Energy (Special Provisions) Act, 2010 will be suspended for the time being. In this context, in view of the proposal of the Department of Energy and Mineral Resources, the Advisory Council Committee on Economic Affairs, in its meeting held on September 4, unanimously recommended that the proposal to import LNG from the spot market can be approved in principle, provided that it does not conflict with any provision of PPA-2006 and PPITRA, 2008. is
According to sources, the advisor to the Ministry of Power, Energy and Mineral Resources has given in-principle approval for the purchase of 16 cargoes of LNG from the spot market for September to December 2024 for uninterrupted gas supply to power, captive power, industrial, fertilizer and commercial sectors. The plan was to purchase 5 cargoes of LNG from the spot market in October. As a result, in general consideration, following the procedure of notification of request for quotation in international procurement as per Rule 85 of PPR-2008, when quotations were called for October 02-03, October 04-05, October 10-11 last September 11, the procuring authority did not submit quotations because the required number of companies did not submit quotations. Cancel quotations. However, due to lack of sufficient time to deliver the LNG cargo within the scheduled dates by re-inviting quotations, quotations were not invited for purchase of LNG on 02-03 October, 04-05 October.
On the other hand, the proposal for the purchase of one cargo LNG supply for the period October 10-11 has been sent for presentation to the Advisory Council Committee on Public Procurement by inviting re-quotation. In general, 23 companies that signed the MSPA on 22-09-2024 for supply of one cargo LNG on 17-18 October 2024 have been sent an e-mail for submission of courtation through LSP software.
According to sources, a total of 4 firms participated in the quotation for the 26th cargo. Among them, Singapore-based Gunvar Singapore Pvt Ltd is the lowest bidder, quoting the price of LNG at $13.5700 per unit. Among the other 3 firms, Vital Asia Pvt Ltd was at $13.9700, Accelerate Energy LP, USA at $14.1500 and PetroChina International (Singapore) Pvt Ltd at $14.5300. As the lowest bidder per unit of LNG at USD 13.5700, the total cost of importing one cargo of LNG including VAT will be Tk 640 crore 15 lakh 66 thousand 80.
On the other hand, when quotations are called for 1 more cargo (27th cargo), total quotations are received from 3 firms. Among them, Gunvar Singapore Pvt Ltd will supply this LNG as the lowest bidder by quoting the price of USD 13.770 per unit of LNG. The remaining 2 firms submitted quotations. Among them, Vital Asia Pvt Ltd quoted US $13.8866 per unit LNG price and Accelerate Energy LP US US $14.1500 per unit LNG price. The lowest bidder will supply the 27th cargo of LNG. The total cost including VAT-tax will be 649 crore 59 lakh 14 thousand 880 taka. That is, the total cost of purchasing 2 cargoes (26th and 27th) of LNG will be 1 thousand 289 crores 74 lakhs 80 thousand 960 taka.
Finance and trade advisor for approval of 2 separate proposals. It will be presented in the next meeting of the Advisory Committee on Public Procurement chaired by Salehuddin Ahmed, sources said.