Bangladesh will import LNG (liquefied natural gas) from Brunei on a long term basis under a G-to-G contract.
The Advisors Council Committee on Economic Affairs (ACCEA), in a meeting with Finance Advisor Dr Salehuddin Ahmed in the chair, approved in principle a proposal in this regard on Wednesday.
The Energy and Mineral Resources Division of the Ministry of Power, Energy and Mineral Resources moved a proposal of state-owned Petrobangla to seek the approval for such a long term contract.
Currently, Bangladesh has been importing LNG from Qatar and Oman on a long term basis under government to government (G-to-G) agreements.
Last year, the previous Awami League government signed two more contracts with the two countries to import more LNG.
Under the new proposal, state-owned Brunei Energy Services and Trading Sdn Bhd (BEST) will supply the LNG to Bangladesh.
About the proposal, Petrobangla Chairman Zanendra Nath Sarker said since this has been an in principle approval, now the organisation will start negotiation to set price of the LNG and also a contract period.
“Until negotiations end, nothing will be set regarding the price and contract period of the supply, “he told UNB.
Official sources said the Southeast Asian nation Brunei Darussalam has been pursuing Dhaka to export its petroleum products, specially, LNG to Bangladesh.
Sultan of Brunei Haji Hassanal Bolkiah paid a state visit to Bangladesh on October 15-17 in 2022 and offered Bangladesh to export LNG and petroleum fuels.
Initially Bangladesh agreed with the offer. But there was widespread allegation that then state-minister for energy and power Nasrul Hamid was opposing the offer as his business interests were involved in LNG suppliers from the international spot market.
As a result, Brunei became disappointed with such opposition from Nasrul Hamnid, a top official of the Energy Division said.
But after the fall of of Awami League government in a mass uprising, Brunei resumed its move and finally became successful.
Meanwhile, the ACCGP, in a separate meeting on Wednesday, approved two proposals to import two cargoes of LNG from the international spot market.
Of these, Vitol Asia Pte, Ltd, Singapore, will supply one cargo, containing 33.66 lakh million British Thermal Unit (MMBtu) of LNG, at a cost of Tk 666.57 crore, with each MMBtu at $14.13.
Another cargo, having the same quantity, will be supplied by TotalEnergies Gas & Power Ltd, Switzerland, at a cost of Tk 687.33 crore, with each MMBtu at $14.57.