Govt to buy LNG from three companies

The government has approved proposals to purchase liquefied natural gas (LNG) from three companies in line with international market prices.

Under the decisions, Bangladesh will buy five LNG cargoes from BP Singapore Pte Ltd and may purchase additional cargoes if necessary. It will also buy one cargo from QatarEnergy Trading LLC.

In addition, the government has given in-principle approval to a proposal to purchase LNG from Japan’s JERA Global Markets Pte Ltd.

The decisions were taken at separate meetings of the Cabinet Committee on Government Purchase and the Cabinet Committee on Economic Affairs on Saturday (October 24), chaired by Finance Minister Amir Khosru Mahmud Chowdhury. The Ministry of Finance disclosed the decisions on Sunday.

At the government purchase committee meeting, a proposal to buy five LNG cargoes from BP Singapore Pte Ltd through direct procurement was approved. The price was set at $0.17 per million British thermal units (MMBtu) below the Japan-Korea Marker (JKM) benchmark.

Additional cargoes may also be purchased if both parties agree.

The procurement will be carried out under Section 68 of the Public Procurement Act 2006 and Rule 99(2) of the Public Procurement Rules 2025.

The committee also approved the purchase of an additional LNG cargo from QatarEnergy Trading LLC under a long-term government-to-government agreement. Scheduled for delivery on December 20, the cargo will cost $0.10 per MMBtu below the JKM benchmark.

Meanwhile, the Energy and Mineral Resources Division presented a proposal to purchase LNG from JERA Global Markets Pte Ltd at the meeting of the Cabinet Committee on Economic Affairs.

The proposal involves direct procurement under the same provisions of the Public Procurement Act 2006 and the Public Procurement Rules 2025. The committee also gave in-principle approval for Petrobangla and JERA Global Markets to sign a short-term LNG sale and purchase agreement and the prescribed format of its terms and conditions.