With domestic gas production dwindling, the nation of 160 million people is set to be a significant player in the global LNG market, alongside Pakistan and India.
The south Asian country had planned to resume spot LNG purchases from January, but bids as high as $51/mmbtu forced it to cancel.
Prices are too high but we have no other option but to buy to keep the economy running
It then bought two cargoes for February delivery, resuming imports of the super-chilled fuel from the spot market after a near three-month hiatus due to high prices.
“Prices are too high but we have no other option but to buy to keep the economy running,” one of the officials said.
Vitol will supply 138,000 cubic meters of lean LNG for 11-12 March delivery, the officials said, with Bangladesh paying $27.97/mmbtu for a cargo for 6-7 March delivery compared to the around $30/mmbtu it paid for two cargoes for February delivery.
Bangladesh has not bought on the spot market since a cargo from Gunvor for late October delivery at $36.95 per mmBtu.
Asian spot LNG prices LNG-AS are hovering at $25/mmBtu but a colder weather outlook and uncertainty over European gas supply amid geopolitical tensions means that traders are bullish about potential rises.
Bangladesh earlier renewed the leases of five oil-fired power plants which were nearing expiry, despite its plan to move from oil towards natural gas for power generation.
The country has two long-term contracts with Qatargas and Oman Trading International.