Bangladesh to restart spot LNG shopping for as costs ease

DHAKA/SINGAPORE: Bangladesh goals to purchase extra liquefied pure fuel (LNG) on the spot market within the coming months, two officers at its nationwide fuel firm stated, reversing a authorities determination final yr to halt spot purchases after costs spiked.

Bangladesh’s state-owned Rupantarita Prakritik Gasoline Firm Ltd (RPGCL) final week sought one LNG cargo for supply in late February.

Whereas the tender has not but been awarded, the bottom supply was made at $19.74 by TotalEnergies amongst 4 contributors who competed, a supply at RPGCL stated. TotalEnergies didn’t instantly reply to a request for remark.

The South Asian nation depends on imported pure fuel for practically three-quarters of its energy technology, however was pressured to ration fuel provides final yr as world costs have been pushed up by Russia’s conflict in Ukraine.

“We’re planning to purchase 10 to 12 cargoes from the spot market till June. Costs are coming down, however they’re nonetheless larger than the costs we’re paying for the long-term offers,” stated a senior official at government-owned Petrobangla, which is in command of LNG imports into Bangladesh.

He declined to be recognized as he was not authorised to talk to the media. Bangladesh’s power ministry didn’t instantly reply to a request for remark.

Easing costs revive LNG curiosity from Asia’s rising fuel markets

“We’re additionally making an attempt to safe LNG from long-term companions, nevertheless it seems to be like they’re unable to offer this yr,” the Petrobangla supply stated. “We’re additionally exploring different sources.”

Bangladesh halted spot purchases of LNG in July after costs of the super-chilled gasoline spiked globally, with Asia spot LNG hitting report highs in August 2022 following Russia’s transfer to curb fuel provides to Europe.

They’ve since eased, falling by a 3rd because the begin of the yr on slower demand and excessive stock ranges in Europe and North Asia, main rising market consumers like Thailand and Bangladesh to hunt tenders on the spot market as soon as extra.

Bangladesh at present imports about 300 million-400 million cubic toes of LNG every day via a 10-year import take care of Oman and a 15-year import take care of Qatar.

“The federal government is making frantic efforts to make sure fuel provides to maintain the economic system operating,” one other Petrobangla official stated.