Bangladesh to import 5 cargoes of LNG at higher cost to tackle energy crisis

Cabinet committee approves the purchase at a higher cost amid global fuel panic

The government has approved the import of five cargoes of liquefied natural gas (LNG) to address potential energy supply challenges arising from the Iran war.

Of the five cargoes, two will be imported from Switzerland under the government-to-government (G2G) arrangement, while three will be procured through the international quotation process.

The three LNG cargoes to be imported through international quotations will cost Tk 23 billion, higher than the amount spent on LNG imports approved last month.

BP Singapore will supply one cargo, while TotalEnergies Gas & Power of the UK will supply two cargoes.

The proposal was approved at the 23rd meeting of the Cabinet Committee on Government Purchase held at the Secretariat on Wednesday, according to a media statement issued by the finance ministry.

The meeting was chaired by Finance Minister Amir Khosru Mahmud Chowdhury.

At the previous meeting of the committee, approval was given to import two LNG cargoes from South Korea's Posco International Corporation and one cargo from the UK's TotalEnergies Gas & Power Limited.

The total cost was estimated at over Tk 23 billion.

At the committee's May 7 meeting, approval was granted to purchase three LNG cargoes from the spot market.

The cargoes were sourced from Vitol Asia, BP Singapore and Gunvor Singapore at a total cost of nearly Tk 22 billion.

The purchase committee meeting on Wednesday also approved the procurement of 40,000 tonnes of bulk granular urea fertiliser.

It further approved the purchase of construction materials for 53 government primary schools-cum-flood shelters in two districts under a project financed by the World Bank and implemented by the Local Government Engineering Department (LGED).

The committee also approved the procurement of 10 million new cut-size B-twill sacks with a capacity of 50kg each.