Bangladesh buys two more LNG cargoes from spot market

The government has approved the purchase of two more liquefied natural gas (LNG) cargoes from the spot market amid global fuel market volatility. According to a proposal from the Energy and Mineral Resources Division, the LNG will be procured through international tenders following the Public Procurement Rules 2025.

The approval was given at a meeting of the Cabinet Committee on Government Purchase held at the Cabinet Division conference room on Wednesday, chaired by Amir Khosru Mahmud Chowdhury.

Under the approved decision, the two LNG cargoes are scheduled to arrive in two phases during April – the 10th cargo between April 24 and 25, and the 11th cargo between April 27 and 28. The cost of each cargo has been estimated at approximately Tk 833 crore, with a total expenditure of about Tk 1,666 crore.

According to the proposal, the LNG is being procured from the UK-based company TotalEnergies. The price per unit (MMBtu) has been set at $19.77.

Sources in the Energy Division said ongoing tensions in the Middle East have created instability in the global fuel supply system. As a result, LNG market prices have increased, leading to higher costs for importing gas from the spot market compared to earlier rates.

Earlier, on March 11, the purchase of three LNG cargoes was approved at comparatively higher rates. Prior to that, approval was given for two more cargoes, which showed significant fluctuations in the price per MMBtu.