Two global firms -- Vitol Asia and AOT Trading AG of Switzerland -- are keen to supply the second LNG cargo to Bangladesh from the international spot market.
State-run Rupantarita Prakritik Gas Company Ltd, or RPGCL, received bids from these two suppliers to supply LNG, or liquefied natural gas, to Bangladesh in November from the spot market, a senior energy ministry official told the FE.
The Energy and Mineral Resources Division, or EMRD, under the Ministry of Power, Energy and Mineral Resources sent their proposals to the cabinet committee on public purchase for approval.
Vitol Asia Pte delivered the first-ever spot LNG cargo carrying around 138,000 cubic metres of LNG from the spot market last month as the country started consuming spot LNG taking advantage of lower oil and natural gas prices globally.
Re-gasified spot LNG entered the national gas grid immediately after the start of unloading.
Bangladesh could save around Tk 300 million in purchasing LNG from the spot market from the first cargo compared to regular LNG market.
Vitol Asia had offered the best bid at $3.8321 per million British thermal unit, or MMBTu, to bag the deal to supply its first LNG cargo to Bangladesh.
The RGCL, the state-run entity that oversees LNG imports, had invited 14 global LNG suppliers in early August to quote prices and relevant services to supply spot LNG from the international market.
Four suppliers including Vitol Asia had submitted bids and among them, Vitol become the best bidder.
Currently, the country's LNG import price under long-term deal with Qatar's Qatargas and Oman's Oman Trading International, or OTI, ranges between $5.50 and $6.0 per MMBtu, RPGCL official said.
Bangladesh has two operational FSRUs, or floating, storage, and re-gasification units.
Each of the two operational FSRUs in Bangladesh has the capacity to re-gasify around 500 mmcfd equivalent of LNG.
Excelerate Energy started supplying re-gasified LNG from its FSRU commercially since August 2018 while Summit started supplies in April 2019.
State-run Petrobangla was operating the FSRUs at about half capacity before as the pipeline was not ready to carry re-gasified LNG.
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