Bangladesh to purchase two more LNG cargoes from spot market

The government has approved the purchase of two more liquefied natural gas (LNG) cargoes from the spot market to tackle the ongoing energy strain linked to instability in the Middle East.

The Cabinet Committee on Government Purchase (CCGP) greenlit the proposal on Wednesday, according to the finance ministry.

Both cargoes will be procured from a UK-based company at a lower cost than previous purchases.

Before Eid-ul-Fitr, the committee had approved the purchase of three LNG cargoes -- two from a South Korean company and one from a UK firm.

This time, both cargoes are being sourced from the UK supplier.

Energy Secretary Mohammad Saiful Islam told reporters after the meeting: “The LNG is being purchased from the spot market at a lower price.”

An analysis of a finance ministry’s statement shows that each cargo will cost Tk 8.33 billion, which is about Tk 740 million less than the previous UK purchase, priced at Tk Tk 9.07 billion per cargo.

Compared with LNG bought from a South Korean company at Tk 8.73 billion per cargo, the current deal is around Tk 400 million cheaper.

The decision comes amid uncertainty in LNG supply routes, particularly through the Strait of Hormuz, where disruptions have raised concerns over shipments under long-term contracts with Qatar.

Prime Minister Tarique Rahman had earlier instructed authorities to import LNG from the spot market on an emergency basis after being briefed on the country’s energy reserves earlier this month.

Following the directive, the energy division moved to secure additional cargoes within the month.

Although the finance minister is typically expected to brief the media after such meetings, no briefing was held on Wednesday due to a cabinet meeting.

Details were later shared through a finance ministry statement.

The meeting also approved the purchase of 10 million litres of refined palm olein, procurement of vaccines directly from UNICEF with advance payment under the EPI programme, and the import of 30,000 tonnes of bagged granular urea.