The cargoes are scheduled to arrive between 23-24 August and 4-5 September amid an ongoing gas shortage.
File of an LNG vessel. Photo: Reuters
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File of an LNG vessel. Photo: Reuters
The government has approved the purchase of two more liquefied natural gas (LNG) cargoes from the international market to help address the ongoing gas shortage in the country.
The cargoes will be purchased from Singapore-based BP Singapore Pte Ltd at a total cost of around Tk1,850.77 crore.
The approval was given at the 38th meeting of the Cabinet Committee on Government Purchase held today (17 August), according to a press release from the finance ministry.
The Energy and Mineral Resources Division had proposed purchasing five LNG cargoes at the meeting.
The first approved cargo will cost $21.878 per million British thermal units (MMBtu), with the total purchase price set at Tk927.51 crore. It is scheduled to arrive in Bangladesh on 23-24 August.
The second cargo, also being purchased from BP Singapore Pte Ltd, is scheduled for delivery on 4-5 September. Its price has been set at $21.778 per MMBtu, with the total cost amounting to Tk923.27 crore.
Together, the two cargoes will cost the government around Tk1,850.77 crore.
LNG being bought above international market price
According to a source familiar with the matter, Bangladesh is purchasing the LNG at prices higher than those prevailing in the international market.
An Energy Division report said the average Japan Korea Marker (JKM) price for LNG scheduled for delivery in August was $16.808 per MMBtu, based on the average JKM price between 16 June and 15 July.
The prices approved for the two cargoes are therefore more than $4.9 per MMBtu higher than the reported August JKM average.
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