Bangladesh Moves to Buy Five LNG Cargoes for August-September Supply

DHAKA, Aug 18 —

Bangladesh has moved to procure five cargoes of liquefied natural gas (LNG) through an international quotation process as the government seeks to meet rising domestic gas demand and maintain supplies to power plants and industries.

The proposed purchases, covering deliveries in late August and early September, are expected to cost the government about 11 billion taka ($90 million), according to a proposal placed before the Cabinet Committee on Government Purchase.

The Energy and Mineral Resources Division has proposed buying the cargoes for delivery during five separate windows: Aug. 23-24, Aug. 26-27, Aug. 29-30, Sept. 1-2 and Sept. 4-5.

Blackcube International Ltd of Britain and Oman-based Maxwell International SPC have been identified as the lowest bidders for the proposed supplies, according to the procurement proposal.

The LNG prices were assessed against the Japan Korea Marker (JKM), a widely used benchmark for spot LNG deliveries in Asia.

For the cargo scheduled for Aug. 23-24, the proposed price is $21.88 per million British thermal units (mmBtu), while the cargo for Sept. 4-5 is priced at $21.78 per mmBtu. The combined purchase cost of those two cargoes is estimated at around 5.4 billion taka, according to the proposal.

The government has also been procuring LNG for delivery in August at lower prices. Two cargoes scheduled for Aug. 17-18 and Aug. 22-23 have been priced at $15.50 per mmBtu, with officials citing prevailing market conditions, elevated spot-market prices, supply risks and negotiations as factors behind the pricing.

The latest procurement proposals come as Bangladesh faces continued pressure to secure reliable gas supplies for electricity generation and industrial production. The country relies significantly on imported LNG to supplement domestic natural gas production.

Bangladesh has stepped up efforts to secure LNG supplies through a combination of long-term contracts and spot or short-term purchases. Recent government decisions have included direct procurement of additional cargoes from international suppliers as authorities seek to avoid disruptions in domestic gas supplies.

The government has also been pursuing longer-term supply arrangements. In a recently reported agreement, Bangladesh is set to receive five LNG cargoes from the United States in 2026, with additional cargoes scheduled for subsequent years under a pricing formula linked to the JKM benchmark.

The latest five-cargo proposal is expected to proceed to procurement once it receives the required approval from the Cabinet Committee on Government Purchase.

For Bangladesh, the purchases highlight the continuing challenge of balancing energy security with the cost of imported fuel, particularly when LNG prices rise sharply in international markets.

— End —