Bangladesh Cancels LNG Import Tender over High Prices

Ruma Paul
Friday, October 23, 2020

Bangladesh is canceling another tender to import liquefied natural gas (LNG) in December, as it received one offer to supply the shipments that were too expensive, a senior energy ministry official said on Friday.

The offer from the Asian unit of Vitol to supply 138,000 cubic meters of LNG for Dec. 9-10 delivery was more than $2 per unit higher than the prices that Bangladesh pays under long-term contracts, said Anisur Rahman, senior secretary to the Energy and Mineral Resources Division.

State-run Rupantarita Prakritik Gas Company, which is in charge of LNG imports into the country, canceled a tender for November delivery, citing the same reason.

"From December, we have a plan to import two cargoes of LNG from the spot markets each month," Rahman said, adding that both the tenders would be reissued.

Under its long-term deals with Oman Trading International and Qatar gas, Bangladesh pays about $5.50 to $6 per million British thermal units (mmBtu).

Rupantarita bought Bangladesh's first spot LNG cargo ever from Vitol at $3.8321 per mmBtu for delivery over late September to early October.

However, prices for spot cargoes, or shipments typically for next month delivery, are gaining on expectations that colder weather during the Northern Hemisphere winter will increase LNG demand for heating.

Spot LNG prices for Asia were estimated at $5.80 per mmBtu as of last Friday, their highest in more than 11 months.

Bangladesh, with a population of about 160 million people, is set to become a major LNG importer in Asia as domestic gas supplies fall.

The country currently has two floating storage and regasification units with a total regasification capacity of 1 billion cubic feet per day, equal to about 7.5 million tonnes a year. 

(Reporting by Ruma Paul; Editing by Rashmi Aich)

Categories: Energy LNG Vessels Industry News Activity Asia Floating Production FSRU

Related Stories

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

French Oil Major Acquires Interests in Multiple Blocks in Southeast Asia

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

Fugro Lands Deepwater Gas Field Job in Southeast Asia

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

Current News

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com