Government to purchase three spot LNG cargoes by mid-April

Bangladesh’s state-run Rupantarita Prakritik Gas Company Ltd (RPGCL) plans to procure three spot liquefied natural gas (LNG) cargoes by mid-April to meet the rising summer demand.

RPGCL has already issued tenders for the procurement of spot LNG cargoes scheduled for delivery on April 1-2, April 12-13, and April 14-15, a senior RPGCL official told The Financial Express on Saturday.

The official noted that additional tenders may be issued to secure more spot LNG cargoes to address the soaring demand in April, typically the hottest month in Bangladesh.

With temperatures expected to rise from early April, the country’s energy demand is anticipated to increase accordingly, he added.

For March, Bangladesh procured four spot LNG cargoes to ensure supply.

The selected bidders will deliver the LNG shipments to Moheshkhali island in the Bay of Bengal, with the flexibility to offload at either of the country’s two floating storage regasification units (FSRUs) stationed on the island.

RPGCL, a fully owned subsidiary of Bangladesh Oil, Gas, and Mineral Corporation (Petrobangla), oversees LNG trading in the country.

Each spot LNG cargo will carry approximately 3.36 million MMBtu.

In its latest tender, Bangladesh awarded a spot LNG cargo for the March 25-26 delivery window to Excelerate Energy LP at a price of $14.30 per million British thermal units (MMBtu).

The country currently imports LNG under long-term agreements with Qatar Energy and OQ Trading International, supplementing its supply with spot market purchases. The regasified LNG is processed through two operational FSRUs with a combined capacity of 1.10 billion cubic feet per day (Bcfd).

Bangladesh continues to grapple with an acute energy crisis due to declining domestic gas production.

To manage the shortfall, the country has been rationing gas supplies to industries, power plants, and other high-consumption sectors.

As of March 14, Bangladesh’s total natural gas supply stood at approximately 2,888 million cubic feet per day (mmcfd), including 991 mmcfd of regasified LNG, against a demand exceeding 4,000 mmcfd, according to Petrobangla data.