The Ministry of Power, Energy and Mineral Resources has taken the initiative to import 2 cargoes of LNG from the spot market through two separate purchase proposals to meet the country’s energy needs. The total cost will be 1355 crore 89 lakh 54 thousand 500 taka.
US-based Accelerate Energy LP will supply the LNG.
According to Ministry sources, in addition to domestically produced gas to meet the existing and growing gas demand of the country, 2.5 MTPA (million tons per enum) from Qatar and 1.0 from Oman under a long-term contract on G2G basis through two floating LNG terminals established at Maheshkhali in Cox’s Bazar. MPTA is procuring LNG. Apart from this, LNG is also procured from spot market under Annual Delivery Plan (ADP) in light of demand. In light of this (31st and 32nd) the Department of Energy and Mineral Resources has taken the initiative to import a total of 2 cargoes of LNG.
A total of 3 firms responded when quotations were called for the 31st cargo. Among them, US-based Accelerate Energy LP was the lowest bidder, quoting a price of USD 14.5500 per unit of LNG. In addition, PetroChina International Singapore 14.8500 USD 2nd and Vital Asia Pvt. The 3rd respondent quoted the price per unit as USD 15.6700. The Bid Evaluation Committee after reviewing the overall issues recommends Accelerate Energy LP as the lowest bidder. In this, the total cost of purchasing one cargo of LNG including VAT will be 686 crore 38 lakh 75 thousand 200 taka.
There are also plans to purchase 5 cargoes of LNG from the spot market in November. Accordingly, Petrobangla sent the 32nd LNG purchase proposal on November 16-17. On October 21, 23 MSPA signatories were sent an e-mail to submit quotations through LPS software. Three institutions responded to this. All three organizations are responsive.
According to sources, the tender evaluation committee recommended the name of Accelerate Energy LP as the lowest bidder. According to the rate mentioned by Accelerate Energy, one cargo equal to 32,55,000 MMBTU of LNG will cost 669 crore 50 lakh 79 thousand 300 taka including VAT-tax. That is, the total cost of buying 2 cargoes of LNG will be 1355 crores 89 lakhs 54 thousand 500 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.
It is to be noted that the advisor to the Ministry of Power, Energy and Mineral Resources has given policy approval for the purchase of 16 cargoes of LNG from the spot market for the period of September to December 2024 for uninterrupted gas supply to power, captive power, industrial, fertilizer and commercial sectors.
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Interview between Time.news Editor and LNG Expert
Time.news Editor (E): Good day, and welcome to Time.news. Today, we have the pleasure of speaking with Dr. Anika Rahman, an expert in energy economics and environmental policies. Dr. Rahman, thank you for joining us.
Dr. Anika Rahman (A): Thank you for having me! I’m excited to delve into today’s topic.
E: Let’s start with the recent initiative by the Ministry of Power, Energy and Mineral Resources to import two cargoes of LNG at a cost of approximately 1356 crore taka. What are your thoughts on this move?
A: This initiative is quite significant, especially for a country like ours that is facing increasing energy demands. Importing liquefied natural gas (LNG) can effectively supplement our domestic production, which is crucial for ensuring energy security.
E: The Ministry has indicated that they are not just relying on domestic gas supplies but also looking to long-term contracts with countries like Qatar and Oman. How does this fit into our overall energy strategy?
A: It’s a sound strategy. Diversifying our supply sources—through both long-term contracts and spot market purchases—helps mitigate risks associated with supply disruptions. Moreover, having a stable and predictable energy supply is essential for economic growth and public welfare.
E: Speaking of the spot market, the LMS’s lowest bidder was Accelerate Energy LP from the U.S., quoting a price of 14.55 USD per unit of LNG. How does this pricing impact the overall cost for consumers and the economy?
A: The competitive pricing from Accelerate Energy LP is a positive outcome for the government, potentially lowering costs for consumers. However, it’s important to note that global LNG prices can fluctuate. To keep energy affordable in the long term, a careful balance of short-term and long-term contracts is necessary.
E: It’s interesting to note that the government is also looking to purchase five additional cargoes in November. How does this potential procurement align with seasonal energy demands?
A: Seasonal dynamics can greatly affect energy needs. In many regions, energy consumption surges during winter months due to heating requirements. By proactively securing additional cargoes, the Ministry is not only preparing for an anticipated increase in demand but also working to ensure price stability.
E: There are concerns regarding environmental impacts associated with increased LNG imports. How can the government address these environmental considerations effectively?
A: That’s a valid concern. While natural gas is a cleaner fossil fuel compared to coal and oil, we must aim for sustainability. The government should invest in cleaner technologies, enhance energy efficiency, and actively pursue renewable sources as part of a broader transition to a sustainable energy future. Integrating these efforts can help mitigate environmental impacts while meeting energy demands.
E: Thank you for sharing your insights, Dr. Rahman. As we are witnessing a shift in the energy landscape not just locally but globally, what do you think lies ahead for Bangladesh in terms of energy resilience?
A: Bangladesh has a tremendous opportunity to strengthen its energy resilience by continuously investing in diverse energy sources—both traditional and renewable. By leveraging international trade and collaboration, we can create a more sustainable energy mix that supports economic growth while protecting our environment.
E: A long-term vision indeed. Dr. Rahman, it’s been a pleasure discussing these important issues with you today.
A: Thank you! I enjoyed our conversation and look forward to seeing how Bangladesh navigates its energy future.
E: And thank you to our readers for tuning in. Stay with Time.news for more updates on energy developments and how they affect our future!