Govt moves to buy three more spot LNG cargoes for July delivery

The government has moved to procure three more liquefied natural gas (LNG) cargoes from the spot market for delivery by mid-July to meet rising domestic demand, despite a recent easing in global energy prices.

State-run Rupantarita Prakritik Gas Company Limited (RPGCL) has floated tenders for the purchase of the LNG cargoes, scheduled for delivery during the July 8-9, July 12-13 and July 14-15 windows.

The move comes amid continued uncertainty in global energy markets linked to tensions in the Middle East and concerns over potential disruptions in the Strait of Hormuz.

Global energy prices, however, have shown a downward trend on expectations of a possible peace agreement between Iran and the United States.

Sources said Iran and the US have agreed to a memorandum of understanding aimed at ending more than three months of conflict. Mediated by Pakistan and Qatar, the agreement is expected to be signed in Geneva on Friday (June 19).

RPGCL officials expect to receive more competitive offers from international suppliers as a result of the softer market sentiment.

Each spot LNG cargo contains approximately 3.36 million MMBtu, according to RPGCL officials. The deadline for bid submission is 8:10pm on June 16.

The cargoes will be delivered to Moheshkhali Island, with the option of unloading at either of the country's two floating storage and regasification units (FSRUs) located there.

RPGCL, a subsidiary of state-owned Bangladesh Oil, Gas and Mineral Corporation (Petrobangla), is responsible for LNG procurement and trading in Bangladesh.

If the tenders are successful, Bangladesh's total spot LNG purchases this year will rise to 31 cargoes, including 29 bought after the outbreak of the Middle East conflict.

The purchases would also raise the number of spot LNG cargoes scheduled for July delivery to five, according to RPGCL.

Bangladesh imported a record seven spot LNG cargoes in each of April, May and June to avoid supply shortages during the peak summer demand period.

The country has increasingly relied on spot LNG purchases since several long-term suppliers from Qatar and Oman reportedly suspended deliveries under force majeure declarations following the regional conflict.

Bangladesh imported 49 spot LNG cargoes in 2025, an RPGCL official said.

azizjst@yahoo.com