Bangladesh seeks third LNG cargo for March delivery
Bangladesh's Rupantarita Prakritik Gas Company Ltd (RPGCL) has issued a tender for the third liquefied natural gas (LNG) cargo it has sought since Dhaka reversed last year's decision to halt spot purchases, two company officials said on Friday.
State-owned RPGCL is seeking one LNG cargo for delivery between 30 and 31 of March, said the officials, who asked not to be named as they are not authorised to speak to media. The tender will close on 27 February, they added.
The government said in July last year it was suspending spot purchases after prices spiked following the Russia-Ukraine war.
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Asia spot LNG prices LNG-AS have since shed 46% from their record highs amid firm inventory levels in North Asia and a mild European winter, prompting buying interest from emerging gas markets in Asia.
RPGCL, a subsidiary of Petrobangla, earlier this week received its first US-loaded LNG cargo since mid-2022 via its first tender, which was awarded to TotalEnergies at $19.74 per million British thermal units (mmBtu), officials said.
The second tender was awarded to JERA, Japan's biggest power generator, at $16.50 mmBtu, two Petrobangla officials said.
The South Asian nation of 170 million people relies on imported natural gas for nearly three-quarters of its power generation, but was forced to ration gas supplies last year as global prices were driven up by Russia's war in Ukraine.
Bangladesh's LNG imports in 2022 fell 14% from the previous year, according to Kpler, which drove down power output while demand was rising. Analysts say the crisis is likely to worsen this year because of an acute shortage of gas.
An official in Bangladesh said this month it would buy 10-12 spot LNG cargoes between February and June if prices soften further, while also seeking long-term supplies from other sources, including Brunei LNG.
"The government is making frantic efforts to ensure gas supplies to keep the economy running," a senior Petrobangla official said.
Bangladesh currently imports about 300 million-400 million cubic feet of LNG daily through a 10-year import deal with Oman and a 15-year deal with Qatar.
