Retenders floated to purchase two spot LNG cargoes

State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) has floated retenders to purchase two spot liquefied natural gas (LNG) cargoes for November 3-4 and November 10-11 delivery windows.

The RPGCL re-tendered for these two spot LNG cargoes after cancelling the initial tenders as these did not fulfil the minimum criteria to get the bidding evaluated under the Public Procurement Rules (PPR) 2008, a senior RPGCL official said.

It floated these tenders for both the spot LNG cargoes on October 14 with the bid submission deadline ending on October 20.

The bid winners will have the option to deliver the LNG cargoes at Moheshkhali island, with the choice to discharge the cargo at either of the country's two floating storage re-gasification units (FSRUs) located on the island. Each spot LNG cargo has a volume of approximately 3.36 million British thermal units (MMBtu).

The volume of each of the spot LNG cargoes is around 3.36 million British thermal units (MMBtu).

The RPGCL received only two bids in each of the initial two tenders, one short of the minimum requirement, turning those non-qualified for evaluation under the rule, said the RPGCL official.

The RPGCL, a wholly owned subsidiary of state-run Bangladesh Oil, Gas, and Mineral Corporation, looks into LNG trades in Bangladesh.

Bangladesh previously awarded one spot LNG cargo tender to Gunvor Singapore Pte, Ltd for October 27-28 delivery window at US$13.93 per MMBtu.

The Advisers Council Committee on Government Purchase (ACCGP) approved the spot LNG procurement proposals of state-run Petrobangla under the energy and mineral resources division (EMRD) of the Ministry of Power, Energy and Mineral Resources (MPEMR) in a meeting on October 9.

Bangladesh's new interim government has been struggling to purchase LNG from the spot market as it has decided to execute the competitive PPR 2008 instead of Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010 (Amended 2021) to select the bidders, after taking office in August.

[email protected]