Petrobangla is going to make a fresh list of international spot market LNG supply companies through an open tender by next week. "The tender is ready for circulation in the media and hopefully the notice will be published in the first half of the next week", Petrobangla Chairman Zanendra Nath Sarker told UNB. He noted that this time an open tender will be floated to make a fresh list of the LNG suppliers through a transparent process. Bangladesh has been importing liquefied natural gas (LNG) from the international spot market since 2019 to meet its growing gas demands. To ensure a smooth supply, as per instruction of the Energy and Mineral Resources Division, the Petrobangla and its LNG handling subsidiary Rupantarita Prakritik Gas Company Limited (RPGCL) invited expressions of interest from the international companies to enlist them with the authorities concerned. Initially, 17 companies were listed on the basis of the Speedy Increase of Power and Energy Supply Act 2010 and then 5 more companies were added to the list. From these companies, Petrobangla has been importing the LNG from the international spot market. But every time, it was seen that again and again a number of certain companies are getting contracts and dominating the business. These companies include Vitol Asia of Singapore, TotalEnergies of Switzerland, Excelerate Energy of USA, and Gunvor Singapore. Read: Govt approves bulk imports of rice, wheat, sugar, LNG, fertiliser Of these, there are allegations; some of the companies had business interests with former ministers and state ministers of the fallen Awami League government and also some local business groups. After the fall of the Awami League government, when the interim government assumed office, it decided to suspend the Speedy Increase of Power and Energy Supply Act 2010 and instead import the LNG from the spot market under the Public Procurement Rule 2008. It also decided to scrap the list of the companies soon to bring transparency in the bulk import of LNG as the government has to spend more than a billion dollars to import the LNG. As part of the decision, finally the Petrobangla moves to prepare a fresh list of the interested companies through an open and transparent process. "We have decided once the new list of the companies is prepared, we will cancel the previous list of the 23 companies", said the Petrobangla. Energy industry insiders said that the new move will encourage more reputed international companies to supply LNG to Bangladesh from the international spot market. "This will also facilitate to get LNG at a much lower rate which will ultimately reduce the energy cost of the government", said an energy expert wishing anonymity. Bangladesh has been experiencing huge gas crisis as it produces 3100 MMCFD Gas per day against a demand of about 4000 MMCFD. Read more: Govt approves LNG and fertilizer import proposals Of the total production of 3100 MMCFD, some 1100 MMCFD gas is being imported from abroad of which 150-200 MMCFD gas is imported from the spot market while remaining is imported from Qatar and Oman under long term contract.

The government has resumed importing LNG (liquefied natural gas) from the international spot market. According to official sources, the Cabinet Committee on Government Purchase (CCGP) approved a proposal of the state-owned Petrobangla to import one cargo of LNG. Agriculture Minister Abdur Razzaque presided over the meeting held virtually on Wednesday. The government had earlier suspended the import of LNG from the international spot market in July last year (2022) following the excessive hike in prices of the gas against the backdrop of the Russia-Ukraine war. Before the war, Bangladesh was purchasing LNG from the spot market between $6-10 per MMBtu. After the start of the war in February this year, the price crossed $37 per MMBtu.      Official sources said the Energy and Mineral Resources Division placed the proposal on behalf of its subordinate body Petrobangla to import the LNG. "The price of LNG was quoted at $19.78 per MMBTu (Million British Thermal unit) and the cost of the total consignment was set at Tk 850 crore", said a source at the Energy and Mineral Resources Division. He noted that the government has planned to import a total of 12 LNG cargos in 2023 to meet the growing demand for natural gas. Read moroe: Bangladesh expects 1-1.5mn MT LNG annually from Brunei starting early 2023 As part of the austerity measures, the government last year suspended power generation from diesel-fired power plants and also import of the LNG as the prices of the products went too high. As a result, the government was incurring a huge financial loss in importing LNG at higher prices and selling it to the local market at lower prices. But recently, the government raised the gas prices at retail level for power plants, industries, and commercial users to reduce subsidies in the sector as per advice of the International Monetary Fund (IMF) to get a loan from the multilateral lending agency. As per the recent announcement, the retail price of gas was raised by 14.5 percent to 178.9 percent for industries, power plants and commercial establishments, who together account for 78 percent of gas use in Bangladesh while price of gas for captive power plants and industries, gas was raised to Tk 30 per cubic metre. This would be a 150 percent hike for large industries, 154.7 percent for medium industries and 178.3 percent for small and cottage industries. For captive power plants, it would be an increase of 87.5 percent. Commercial establishments like hotels and restaurants will have to pay Tk 30.50 per unit, up 14.5 percent from the existing rate. Read more: Despite suspension of LNG import, govt decides to increase listed suppliers’ numbers The tariff for households, fertiliser production, CNG-run vehicles and tea gardens will remain unchanged. The country produces about 2,300 million cubic feet per day (MMCFD) gas from local gas fields to meet a demand of over 2,800 MMCFD leaving a gap of 500 MMCFD. To meet this gas the government has to import a huge LNG from abroad of which it meets 350 MMCFD gas through importing it from Qatar and Oman under long-term agreements while remaining 150 MMCFD is being imported from the international spot market.