The government on Monday approved a purchase proposal of two cargoes of liquefied natural gas (LNG) from BP Singapore Pte Ltd at a combined cost of more than Tk 1,850 crore, including advance income tax, amid continued efforts to ensure uninterrupted gas supply.
The decision was taken at the Cabinet Committee on Government Purchase (CCGP) meeting held at Bangladesh Secretariat with Finance Minister Amir Khosru Mahmud Chowdhury in the chair.
Govt resets fiscal clock, Apr-Mar cycle from FY29
The purchase proposal was placed by the Energy and Mineral Resources Division under the international Request for Quotation (RFQ) process in accordance with Rule 105(3)(a) of the Public Procurement Rules (PPR), 2025.
According to the proposal, one cargo for delivery on Aug 23-24 was recommended for purchase from BP Singapore at $21.878 per million British thermal units (MMBtu), costing Tk 927,50,60,833.92 including AIT.
Another cargo for delivery on Sept 4-5 was recommended from the same supplier at $21.778 per MMBtu, costing Tk 923,26,66,369.92 including AIT.
The total cost of the two cargoes stands at around Tk 1,850.77 crore.
The proposal was considered by the Cabinet Committee on Government Purchase, with the LNG procurement being placed under the applicable provisions of the PPR 2025.
Separately, the government is also considering the purchase of two LNG cargoes from Blackcube International Ltd of the UK at a negotiated price of $15.50 per MMBtu for delivery on Aug 17-18 and Aug 22-23.
The proposal noted that, under the LNG Sale and Purchase Agreements (SPA), LNG prices are determined on the basis of the Japan Korea Marker (JKM).
According to the average JKM published by Platts for the period from June 16 to July 15, the applicable JKM price for LNG to be delivered in August 2026 is $16.808 per MMBtu.
Blackcube initially quoted $13.00 per MMBtu, but the price was subsequently negotiated at $15.50 per MMBtu, taking into account market volatility, higher spot-market prices and the limited time available to arrange cargoes from alternative sources.
The proposal said the spot LNG price at JKM stood at $21.289 per MMBtu on Aug 11. Considering the prevailing market conditions, purchasing the two cargoes from Blackcube at the negotiated price could save around $37.05 million compared with the spot market, it said.
The government is also set to receive two LNG cargoes from MAXWELL International SPC, Oman, in 2026 at JKM plus $0.54 per MMBtu under the existing arrangement.
The proposal said the negotiation for the Blackcube cargoes was conducted in accordance with the provisions allowing negotiation in direct procurement under the Public Procurement Act, 2006 and Rules 97, 98 and 99 of the PPR 2025.
Bangladesh has been relying increasingly on imported LNG to meet domestic gas demand as domestic gas production has declined, making timely procurement of spot LNG cargoes important for maintaining gas supplies to power plants, industries and other consumers.