Saturday, 18th May, 2024
Saturday, 18th May, 2024

Bangladesh halts bid to import spot LNG

Bangladesh has cancelled tenders to import LNG (liquefied natural gas) from spot market in December as evaluators found too ‘expensive’ the bidding for two 138,000-cubic metre LNG cargoes.

Rupantarita Prakritik Gas Company Ltd (RPGCL), which oversees LNG imports, may go for re-tender to get expected price quotes from bidders, a senior energy ministry official told the FE.

Vitol Asia Pte Ltd was the lone bidder for both tenders for early and late December deliveries of cargoes.

It quoted $7.60 and $6.89 per million British thermal unit (MMBTu) respectively.

The quoted prices are higher than the import price of LNG from long-term contractors Qatargas and Oman’s Trading International (OTI).

Earlier, Bangladesh cancelled tender for November delivery of spot LNG cargoes as the price quotes of two bidders-Vitol and Swiss AOT Trading AG-were found higher than expected.

The country has so far imported only one 138,000-cubic metre LNG cargo from spot market, which was delivered in late September.

Vitol delivered the first and so far the lone cargo carrying an estimated 138,000 cubic metres of LNG from spot market on September 25.

Regasified spot LNG entered the national gas grid immediate after the start of unloading.

Bangladesh could save around Tk 300 million ($3.52 million) in purchasing LNG from spot market from first cargo compared to regular LNG market.

Vitol had offered the best bid at $3.8321 per MMBTu to bag a deal to supply its first LNG cargo in Bangladesh.

“We will continue our drive to import LNG from spot market to diversify our import sources and get it at expected low prices,” said a senior RPGCL official.

Energy and mineral resources division under power, energy and mineral resources ministry initiated to import spot-market LNG after two years into the country’s first LNG cargo import in August 2018.

Global energy prices, including that of spot LNG, has recently soared for a demand boom in developed nations like the US and Europe over the ensuing winter.

Market insiders, however, said the spot LNG prices might come down again as the cases of coronavirus infection are on the rise again globally.

The state energy entity invited all the 14 selected global LNG suppliers during the previous tenders to quote prices for delivery of each cargo.

Currently, the country’s LNG import price under long-term deals with Qatargas.

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