Govt to get Tk 624cr LNG from Singapore firm
The government yesterday approved two proposals to get a complete of 67.2 lakh MMBTU liquified natural gas from spot industry for Tk 623.64 crore to meet up with the developing demand for the super-chilled fuel.
Vitol Asia Pte Ltd of Singapore will supply the gas. The cabinet committee on get authorized the proposals to get the LNG from the location market in a meeting, presided over by Financing Minister AHM Mustafa Kamal.
In a spot market, economic instruments, such as for example commodities, currencies and securities, are traded for immediate delivery.
"We are ordering LNG from the location market alongside getting the gas through a long-term contract," Kamal told reporters.
Under among the proposals, Petrobangla, a company of the energy and mineral resources division, will purchase 33,60,000 MMBTUs (million British thermal products) of LNG for about Tk 310.98 crore. Each MMBTU will cost $9.3123.
The second proposal will see Petrobangla buy 33,60,000 MMBTU LNG for about Tk 312.65 crore. The fuel is priced at $9.3611 per MMBTU.
In September this past year, the government moved to the location market for the very first time to get the fuel at a cheaper rate. At the period, Vitol Asia gained the work order to provide 3,490,200 MMBTUs for Tk 132.93 crore.
In January, Asian spot LNG rates rose to unprecedented levels due to cargo shortages, transportation bottlenecks, supply outages, and record winter temperatures boosting end-user demand, according to selling price agency S&P Global Platts.
The S&P Global Platts JKM for February was assessed at a record most of $32.494 per MMBTU on January 12. This is the highest for the LNG benchmark for Asian location LNG since it premiered in early 2009.
The Japan-Korea-Marker (JKM) is employed as a reference stage for spot discounts in Asia.
LNG price has drop in latest weeks, and an additional drop is expected by the end of the month, according to the official of Rupantarita Prakritik Gas Enterprise Ltd.
Bangladesh also buys LNG from Qatar and Oman under a government-to-government agreements.
In 2017, Bangladesh signed a 15-year contract with RasGas of Qatar, which would supply 2.5 million tonnes of LNG every year. The fuel comes at 12.65 per cent of the three-month average price of Brent oil as well as $0.5 frequent per MMBTU.
The government includes a 10-year LNG import cope with Oman Trading International. The LNG will cost at 11.9 per cent of the three-month average price of Brent crude oil and also a continuous price of 40 cents per MMBTU.
Bangladesh added LNG to its energy system found in 2018 within the government's work to eradicate gas shortages and electricity outages and unlock the economy's potential.
Excelerate Energy of the US began supplying re-gasified LNG from its terminal in Moheshkhali in August 2017. It includes a regasification capability of 500 million cubic feet of gas per day.
In May 2019, Summit LNG Terminal Co Ltd, the country's second LNG terminal, started supplying re-gasified LNG. The unit includes a capacity of supplying 500 million cubic legs of re-gasified LNG.
