Govt importing LNG at lower price

Bangladesh is getting liquefied natural gas (LNG) at a lower price from the international spot market as prices on the international market are on the decline.

The cabinet committee on government purchase approved the latest cargo, each of which is equivalent to 33.60 lakh million British thermal unit (MMbtu), at a rate of $9.93 per MMbtu yesterday.

It will be supplied by the Singapore-based company Vitol Asia Pte Ltd at a total cost of Tk 429.69 crore.

On January 23, the government had approved another cargo at a rate of $10.88 per MMbtu. It will be supplied by Switzerland-based TotalEnergies Gas and Power Ltd. The total cost for that cargo was Tk 470.48 crore.

Currently, Bangladesh has Master Sale and Purchase Agreements (MSPA) with 22 global entities to purchase and supply LNG in the spot market. In yesterday's meeting, Oman's state-owned company OQ Trading Limited (OQT) was enlisted as an LNG supplier.

In December last year, the government had purchased a cargo of LNG at Tk 542.27 crore.

Global market analysts are projecting that the price of LNG will decrease more.

Meanwhile, the project cost for the installation of a Single Point Mooring (SPM) system with double line under Eastern Refinery (ERL) has increased for the fourth consecutive term.

The government has reached a fourth supplementary agreement with the engineering and procurement contractor of the project, China Petroleum Pipeline Engineering Corporation, at a cost of Tk 382 crore.

Besides, the government reached a second supplementary agreement with the German consultancy firm of the project, ILF Consulting Engineers, worth Tk 104.70 crore.

The original cost of the project to build a pipeline from the Moheshkhali Sea to the ERL was estimated at Tk 4,936 crore. But it was later revised three times and currently stands at Tk 7,125 crore.

Despite repeated attempts, ERL Managing Director Md Lokman was unreachable.