Thirty-four global firms have submitted expressions of interest (EOIs) to supply spot liquefied natural gas (LNG) to Bangladesh as the interim government has started shortlisting spot LNG suppliers afresh.
A senior official of state-run Petrobangla told The Financial Express Monday that eleven of the firms had been selling LNG in the spot market since September 2020, and the remaining 23 were new.
The firms from the US, Germany, Switzerland, Japan, Singapore, Hong Kong, Turkey, Oman, Malaysia, Nigeria, and their consortia submitted bids to sell lean LNG to Bangladesh at the close of the bid submission deadline on December 1.
Of the companies that submitted bids, 13 are from Singapore, five from Switzerland, three from the US, two from Turkey, two from the UAE, and one each from Germany, Japan, Hong Kong, Oman, Malaysia, and Nigeria.
The companies are PetroChina International (Singapore) Pte Ltd Singapore, SEFE Marketing & Trading Singapore Pte (Singapore), Emirates National Oil Company (Singapore) Pvt Ltd, Excelerate Energy LP US, Glencore Singapore Pte Ltd, OQ Trading Oman, Vitol Asia Pte Ltd Singapore, Gunvor Singpore Ptd Ltd, TotalEnergies Switzerland, Woodside Singapore, Sinochem International Oil (Singapore) Pte Ltd, JERA Japan, Unipec Singapore Pte Ltd Singapore, BP Singapore Pte Ltd Singapore, Uniper Global Commodities Germany, MET International AG Switzerland, Aramco Trading Singapore Pte Ltd, ADNOC Trading UAE, Trafigura Pte Ltd Singapore, DXT Commodities SA Switzerland, SOCAR Trading SA Switzerland, Shell International Trading Middle East Ltd, FZE UAE, Mercuria Energy Trading SA Switzerland, Derin Shipping Turkey, BB Energy (Asia) Pte Ltd Singapore, BGN Int DMCC Turkey, Posco International Corporation South Korea, Global LNG & Boustead Holdings Sdn Bhd Malaysia, Oando PLC Nigeria, Wiselun Petroleum Gas Ltd Hong Kong, QatarEnergy Trading LLC's (QET), Sonangol EP, US and Trafigura-Astro JV.
"We will evaluate the EOIs soon to shortlist potential LNG suppliers based on their trading experience and ability to deliver the right cargo specification to both onshore and offshore terminals on a spot basis," said the Petrobangla official.
State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) would ink the master sales and purchase agreement (MPSA) with the short-listed suppliers to purchase LNG, said the official. However, the official did not disclose the LNG quantity.
The spot market is where commodity is bought or sold for immediate delivery or delivery in the very near future.
The selected firms would provide LNG for Bangladesh's LNG-receiving terminals from the spot market after getting orders from RPGCL from time to time based on demand, said an official of RPGCL.
The RPGCL would initially submit proposals to the selected firms specifying the quantity of spot LNG and seek to purchase the gas under the MPSA, said the official.
The imported LNG should have a gross heating value ranging between 1,025 and 1,100 British thermal unit (Btu) per standard cubic feet (scf). It would require to be blended with locally-produced natural gas, which is sulphur-free and sweet gas, before being delivered to the end user. The imported LNG's sulphur content could be low as a result.
The selected firms would have to supply LNG on a delivered ex-ship basis and the vessel size should range between 125,000 and 220,000 cubic metre (cu m).
The RPGCL will procure spot LNG based on market prices, terminal availability, increased re-gasification capacity, and downstream demand.
Bangladesh is currently purchasing LNG both from long-term and spot suppliers to re-gasify in the country's two operational floating storage and re-gasification units.
Thirty-nine companies submitted EOIs during Bangladesh's first-ever bid to shortlist spot LNG suppliers in 2017, and 23 of them inked final deals with Petrobangla then.
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