Play store
The government has approved the purchase of two cargoes of liquefied natural gas (LNG) at a price lower than the prevailing spot-market rate, potentially saving around Tk 370 crore.
The approval was given at an emergency meeting of the Cabinet Committee on Government Purchase held online on Monday (August 17), chaired by Finance Minister Amir Khosru Mahmud Chowdhury.
According to the proposal from the Energy and Mineral Resources Division, the government will purchase the two LNG cargoes from Oman-based Maxwell International SPC at $15.50 per million British thermal units (MMBtu).
The applicable JKM-based LNG price for August was $16.808 per MMBtu.
Meanwhile, the spot-market price stood at $21.289 per MMBtu on August 11.
The two cargoes are scheduled to be supplied on August 17–18 and August 22–23.
The government is expected to save approximately $30.75 million, or around Tk 370 crore, compared with the prevailing spot-market price.
The supplier had initially offered the LNG at $13 per MMBtu.
However, following negotiations, the price was revised to $15.50 per MMBtu, taking into account volatility in the global LNG market, higher spot-market prices, limited time to source cargoes from alternative suppliers and the potential savings for the government.
At the same meeting, proposals were also discussed to procure five additional LNG cargoes through international quotations.
Two of these cargoes were proposed to be purchased from BP Singapore Pte Ltd for delivery in late August and early September.
