Bangladesh to import first spot LNG cargo next month

Bangladesh is set to import its first spot cargo of liquefied natural gas (LNG) late next month and is inviting offers from shortlisted companies it has signed agreements with, two energy officials told Reuters.

State-run Rupantarita Prakritik Gas Company plans to issue a tender in the next few days and has informed 14 shortlisted companies it has signed sales and purchase agreements with on their eligibility to participate in the tender, a senior company official said.

"We will seek 138,000 cubic metres of lean LNG for end of September delivery," the official said, adding that only the 14 companies will be able to take part in the tender, which will be awarded to the lowest bidder.

Submissions will be due by 17 August and the shipment is for delivery from 30 September to 8 October, the official said.

Last year, Bangladesh shortlisted 17 companies for spot LNG and among them 14 have signed sales and purchase agreement with Rupantarito Prakritik Gas Company.

The companies include Marubeni Corp, Mitsui, Vitol Asia, Trafigura, Petronas, Excelerate Energy, Woodside Petroleum, AOT Trading, and ENI.

"We haven't fixed any target yet for spot LNG. We'll seek LNG from spot market as per our demand. We need to diversify market and ensure cheaper prices for our LNG imports," another company official said.

Lower Asian spot prices <LNG-AS> compared with previous years are attracting some countries to import more spot cargoes rather than sign long-term contracts.

Bangladesh, with a population of about 160 million people, is expected to become a major LNG importer in Asia, along with Pakistan and India, as domestic gas supplies fall.

Bangladesh has two floating storage and regasification units with a total regasification capacity of 1 billion cubic feet per day - equal to about 7.5 million tonnes a year - and is building a land-based terminal that can handle another 7.5 million tonnes a year of LNG, expected to be ready in five years.