Fresh bidding for mid-July delivery

FE REPORT | Published: June 27, 2024 22:58:53

The government has floated a new tender to buy a cargo of spot-market LNG (liquefied natural gas) for mid-July delivery after the cancellation of four such cargoes for June delivery.
The state-backed Rupantarita Prakritik Gas Company Ltd (RPGCL) invited bidders on Tuesday to take delivery during the July 15-19 period, a senior RPGCL official told the FE on Thursday.
Earlier, the RPGCL cancelled four spot cargoes for June delivery as Summit LNG Terminal remained out of operation since May 30 because of its damage done by cyclone Remal.
Summit's FSRU (floating, storage and regasification unit) would not be available for LNG regasification until July 13, a senior Petrobangla official said.
In consequence, the RPGCL had to cancel three spot cargoes of Gunvor Singapore Pte Ltd and one of QatarEnergy Trading LLC, he added.
The latest tender, however, is the first spot LNG cargo to be bought by the government for July delivery.
The bid winner might deliver the cargo at Moheshkhali, with an option to release it at either of the country's two FSRUs located on the island, the official said.
The RPGCL, a wholly-owned subsidiary of the state-run Bangladesh Oil, Gas and Mineral Corporation, known as Petrobangla, looks after LNG trading in Bangladesh.
The volume of the spot LNG cargo should be 3.36 million British thermal unit (MMBtu).
Bangladesh might float tenders for more spot LNG cargo purchases once Summit's damaged FSRU resumes operation by mid-July, added the official.
It previously awarded one spot cargo to Gunvor Singapore to supply one lean spot cargo for June 28-29 delivery at $12.9697 per MMBTu.
The cabinet committee on government purchase approved the spot LNG procurement proposal of the Energy and Mineral Resources Division under the Ministry of Power, Energy and Mineral Resources on June 05.
Separately, Bangladesh is set to import a total of six long-term LNG cargoes in July-four from QatarEnergy, formerly Qatargas, and two from OQ Trading, previously Oman Trading International, said the official.
Despite payment delays, Bangladesh is continuing LNG imports from both long-term and spot suppliers to meet the mounting domestic demand, according to sources.
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