In a decisive meeting on Wednesday, the Cabinet Committee on Government Purchase (CCGP) granted approval for three distinct proposals to import LNG (liquefied natural gas) cargo shipments from renowned Singapore-based firms. Chaired by Finance Minister Abul Hassan Mahmood Ali, the meeting marked a crucial step towards addressing Bangladesh’s severe gas crisis.
As outlined in the proposals from the Energy and Mineral Resources Division, state-owned Petrobangla is set to import two LNG cargo shipments from Golbar Singapore Limited. Each shipment, priced at Tk425.81 crore, comes with a unit cost of $9.847. Additionally, a third LNG cargo will be sourced from Vitol Asia (pvt) Limited, Singapore, at a cost of Tk422.48 crore, with each unit priced at $9.770. These transactions will be facilitated through a limited bidding process under the Rapid Increase in Supply of Power and Energy (Special) Act 2010.
Insights from the Energy and Mineral Resources Ministry reveal Bangladesh’s plan to import a total of 13 LNG cargo shipments between January and June this year. This decision follows the government’s earlier signing of a “Master Sale and Purchase Agreement” (MSPA) with 22 selected companies for LNG imports from the international spot market.
The temporary suspension of LNG imports from the spot market, lasting from July 2022 to January 2023, was a response to the increased prices amid a government dollar crisis. The country presently grapples with a severe gas crisis, with production at around 2500 million cubic feet per day (mmcfd) against a demand of 4000 mmcfd.
Household consumers in numerous areas face a shortage of gas for cooking, while power and industrial productions encounter serious disruptions due to the ongoing gas shortage. The swift approval of LNG imports from Singapore underscores Bangladesh’s commitment to mitigating these challenges and stabilizing the energy landscape for the benefit of consumers and industrial operations.
