Govt to import LNG from NZ to meet emergency needs
BI Report || BusinessInsider
Representational image. Photo: Collected
The government has taken an initiative to import one cargo (33.70 lakh MMBTU) of liquefied natural gas through international tender in order to meet the growing demand for gas in the country.
The price of liquefied natural gas (LNG) per MMBTU is $ 29.77. As such, the Bangladesh government has to spend a total of Tk 1007.5 crore in local currency to purchase the LNG.
New Zealand-based M/S TotalEnergies Gas and Power Limited will supply the LNG, an official of the Ministry of Power, Energy and Mineral Resources told the Business Insider.
Energy ministry proposal will be placed at the cabinet meeting on public purchase today, which will be presided over by Finance Minister AHM Mustafa Kamal.
In order to meet the growing demand for gas in Bangladesh, LNG is being procured from the spot market, alongside importing through two long-term agreements with Qatar Gas and Oman Trading International (OQT).
To purchase LNG from the spot market, Master Sale and Purchase Agreement (MSPA) was prepared and vetting of the Legislative and Parliamentary Division was taken. The MSPA is finalised accordingly.
Later, based on policy approval of the cabinet committee on economic affairs, Petrobangla signed MSPA with 16 companies.
Prime Minister Sheikh Hasina (the minister for Power, Energy and Mineral Resources) gave policy approval in February 2021 to procure two cargo LNG from the spot market for uninterrupted supply of gas to the country.
According to the proposal, due to Coronavirus situation, tenders were taken through LNG spot purchase (LSP) software and not directly or through courier service.
In 2022, bids were invited for the purchase of LNG from the spot market. As the received bids were technically and financially non-responsive, it was not possible to import one cargo LNG approved for the month of January 2022.
In 2021, 21 bids were invited for the purchase of LNG from the spot market through that software. Of these, approval has been sought from the cabinet committee on public procurement for the purchase of 16 cargo LNG.
At least one cargo of LNG needs to be purchased from the spot market for uninterrupted gas supply in February 2022.
On January 13, RPGCL sent e-mails to 18 MSPA signing companies inviting bids for supply of one cargo LNG on a spot basis for 2022.
The last date for sending tenders was January 23.
