Tk 1,243cr LNG to be imported from spot market

Time Business Report: The government yesterday approved two proposals seeking to buy 67.20 lakh tonnes of liquefied natural gas (LNG) worth Tk 1,243 crore from the international spot market to alleviate the energy shortage facing the economy.

The cabinet committee on purchase gave the nod during a meeting at the secretariat in Dhaka. Finance Minister AHM Mustafa Kamal presided over the meeting.

The spot market is where financial instruments, such as commodities, currencies, and securities, are traded for immediate delivery.

Of the LNG, 33.60 lakh MMBTUs would be supplied by Switzerland's TotalEnergies Gas & Power Ltd. Per unit will cost $13.77.

An equal amount of super-chilled fuel would be delivered by Vitol Asia Pte Ltd of Singapore with each unit costing $14.97.

Bangladesh depends on imported LNG for about 25 percent of its gas consumption as its domestic production can't meet the entire demand for the energy.

The country was forced to ration gas supplies last year as global prices were driven up by the Russia-Ukraine war. The higher prices also forced Bangladesh to pause the purchase of LNG from the international spot market to save its foreign currency reserves.

In February, the government turned to the spot market again to ramp up electricity production ahead of Ramadan and the summer season after LNG prices plunged by more than 70 percent from last year's record $70 per MMBTU.

The cabinet meeting approved a proposal seeking to import 30,000 tonnes of superphosphate fertiliser from OCP Group of Morocco at Tk 129.10 crore. Each tonne will be priced at $393.

Some 40,000 tonnes of di-ammonium phosphate, popularly known as DAP, will be purchased from Saudi-based Ma'aden at a total price of Tk 237.61 crore. The price will be $542 per tonne.

A proposal from the Payra Port Authority received the consent to procure two mobile harbour cranes and allied equipment worth Tk 109.53 crore for the Payra Sea Port. Saif Powertec Ltd will deliver the items.