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The government has decided to purchase nine cargoes of liquefied natural gas (LNG) from Singapore-based Trafigura Pte Ltd between December 2026 and December 2027, with prices linked to international market rates.
The price has been set at $0.10 per million British thermal units (MMBtu) below the Japan-Korea Marker (JKM) benchmark. The number of cargoes may be increased or reduced by mutual agreement, depending on demand.
The proposal was approved at a meeting of the Cabinet Committee on Government Purchase on Tuesday, chaired by Finance Minister Amir Khosru Mahmud Chowdhury, who joined the meeting online from Thailand. The Finance Ministry disclosed the decision on Wednesday.
The total import cost will depend on international market prices, the volume supplied and other contractual terms.
Meanwhile, the Cabinet Committee on Economic Affairs has given in-principle approval to two proposals for LNG procurement under the government-to-government (G2G) system to maintain the country’s gas supply and ensure energy security.
Under a proposal from the Energy and Mineral Resources Division, offers from Trafigura Pte Ltd and Cheniere Marketing International LLP will be processed under the G2G arrangement.
The committee also approved in principle the purchase of LNG through a direct procurement method from BP Singapore Pte Ltd, Sahara Energy Resources Ltd and Shell International Trading Middle East Ltd FZE to meet urgent domestic gas demand.
The proposals will be processed under relevant provisions of the Public Procurement Act 2006 and the Public Procurement Rules 2025.
Details of the total volumes and costs under the additional procurement proposals were not immediately disclosed.
