Economy Desk: Bangladesh is finally buying liquefied natural gas (LNG) from the spot market. Two officials of the National Gas Company confirmed the matter.
The Russia-Ukraine war had driven up LNG prices. The government stopped buying it for 10 consecutive months. Now they are buying the fuel again as the price has come down. Khabar-Reuters
Last week, the Bangladesh state-controlled Converted Natural Gas Company Limited (RPGCL) placed a purchase order for one cargo of LNG in the spot market. It will arrive in the country at the end of February.
According to RPGCL sources, one cargo (3.36 million mmbtu) of LNG is being purchased from the French company Total Energies. The purchase price per unit will be 19 dollars and 74 cents. However, tenders have not been called for this yet. Even TotalEnergies did not immediately comment on this.
The South Asian country depends on imported natural gas for nearly three-quarters of its electricity generation. But they were forced to stop buying it last year as global prices rose due to Russia’s war in Ukraine. Petrobangla is responsible for importing LNG to Bangladesh.
A senior official of the government-run gas company said, “We are planning to buy 10 to 12 cargoes from the spot market until next June.” The price of LNG has fallen. But it is still higher than what we pay for long-term contracts.
Russia started attacking Ukraine at the end of February last year. After that, the price of LNG started to increase around the world. As a result, the Bangladesh government suspended its purchase. Finally, they moved away from that position.
