State-run Petrobangla inked Sunday a sales and purchase agreement (SPA) with Oman Trading International (OTI) to import around 1.0 million tonne of LNG (liquefied natural gas) annually for 10 years.
This is the country's second binding SPA to import LNG after Qatar's RasGas.
State minister for the Ministry of Power, Energy and Mineral Resources (MPEMR) Nasrul Hamid was the chief guests at the deal signing ceremony held at Petrobangla headquarters in the city.
The SPA is of delivery ex-ship (DES) type meaning the price would include transportation cost and Petrobangla would receive LNG at the terminal.
The base annual contract quantity (BACQ) would be 0.5 million tonne per year (Mtpa) subject to completion of the LNG terminal of US-based Excelerate Energy and another 0.5 Mtpa subject to completion of the LNG terminal owned by Summit Group.
The cabinet committee on public purchase earlier on April 19 approved inking the SPA with the OTI to import LNG under government to government negotiation.
The government has planned to start commercial supply of re-gasified LNG soon as Bangladesh received its first LNG cargo on April 24 as the Excelerate Energy Bangladesh Ltd (EEBL) brought in its floating, storage and re-gasification unit (FSRU) carrying 136,009 cubic meter of lean LNG from Qatar's RasGas.
The government is also in negotiations with other suppliers and is planning to sign binding SPAs with several other suppliers for long-term deals and moved to ink deals with half a dozen firms to import LNG for short-term on spot basis.
Petrobangla chairman Abul Mansur Md Faizullah, RPGCL (Rupantorito Prakritik Gas Company Ltd) managing director Md Quamruzzaman and joint secretary of Energy and Mineral Resources Division (EMRD) Zanendra Nath Sarker were also present at the deal signing ceremony.
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