Four global liquefied natural gas (LNG) suppliers are in queue to supply the maiden cargo of the fuel from international spot market.
The state-run Rupantarita Prakritik Gas Company Ltd (RPGCL) received bids from only four suppliers out of the 14 short-listed firms that showed interest to supply LNG to Bangladesh from spot market, a senior energy ministry official told the FE.
The official did not disclose the names of the LNG suppliers that submitted bids after closure of the submission deadline on August 17.
"We are now evaluating their bids, which include price and other necessary issues," he said.
Bangladesh is eyeing to initiate importing LNG from spot market from late September to early October to rip benefit of the low price of the fossil fuel in international market.
"Initially we will import one cargo, carrying 138,000 cubic metres of lean LNG," RPGCL managing director Md Kamruzzaman earlier said.
The government previously constituted several committees to ensure smooth start of LNG import from spot market.
The RPGCL, the state-run entity that looks after LNG import issues, earlier signed the master sale and purchase agreement (MSPA) with 14 firms separately in efforts to take advantage of low price of the fuel in spot market and thus meet the country's growing demand.
The firms with whom the MPSAs were signed include Mitsui and Co Ltd, Marubeni Corporation, Osaka Gas Co Ltd, and Jera Co Inc. of Japan; Cheniere Marketing International LLP, Vitol Asia Pte Ltd, Trafigura Pte Ltd, and Diamond gas International Pte Ltd of Singapore; Excelerate Energy Ltd Partnership of USA, Woodside Petroleum Ltd of Australia, Eni S.p.A of Italy. AOT Trading AG of Switzerland, Petronas LNG Ltd of Malaysia, and the joint venture of Summit Corporation Ltd and Summit Oil & Shipping Co Ltd of Bangladesh.
Spot LNG price plunged to historic low this year on the back of its lower demand due to milder-than-usual winter coupled with the Covid-19 outbreak and increased supply from the US and Australia.
Purchasing LNG from spot market will help diversify the country's LNG sourcing as well.
The country started regular import of LNG on September 9, 2018. Currently, Bangladesh has been importing lean LNG under long-term deals from Qatar's RasGas, which has recently merged with Qatargas and is renamed Qatargas, and Oman Trading International (OTI) of Oman.
The spot LNG providers will supply the fuel to the country's LNG-receiving terminals as per instructions to be given from time to time, depending on the demand.
The RPGCL will initially place proposals to these firms, specifying the quantity of spot LNG, for supplying to the LNG terminals.
The imported spot LNG will be blended with locally produced natural gas, which is sulfur-free and sweet gas, before it is delivered to end-users. As a result, the imported LNG's sulfur content will be low.
The imported spot LNG should have a gross heating value ranging between 1,025 and 1,100 Btu per standard cubic feet.
The LNG should be supplied on a delivered ex-ship basis, and the vessel size should range between 125,000 and 220,000 cubic metres.
The RPGCL will procure spot LNG based on market prices, terminal availability, increased re-gasification capacity, and downstream demand.
Currently, two floating storage regasification units (FSRUs), owned by the US-based Excelerate Energy and local Summit Group, are re-gasifying around 600 million cubic feet per day (mmcfd) of LNG.
Both the FSRUs have the capacity to re-gasify around 500 mmcfd of LNG each.
Bangladesh imports around five to six cargoes from term suppliers Qatargas and OTI every month to meet mounting natural gas demand.
Azizjst@yahoo.com
