With lowering LNG prices, Bangladesh is back in the business with a spot LNG buy tender. The state-owned Rupantarita Prakritik Gas Company Ltd (RPGCL) has issued a buy tender for a cargo for delivery between Feb 21-22. RPGCL LNG buy tender issued for a cargo to be delivered on ex-ship basis (DES) will close on Jan 29.
Bangladesh awarded around 12 spot cargoes in the first six months of 2022 but pulled out of the spot market for the remaining six months of 2022. Extraordinary hike in spot prices during the second half of 2022, following Russian invasion of Ukraine and subsequent shutdown of piped gas supply to Europe, forced most of the Asian countries to pull out of spot LNG market.
In all, Bangladesh has imported 29 spot cargoes since first one, Bangladesh imported in September 2020. RPGCL had imported its last spot cargo in 2022 in June from trading major Gunvor at $24.75/mBtu. With JKM prices hovering around $20, spot LNG has attracted most of the Asian LNG buyers including ones from South Asia like India and Bangladesh. Indian importer GAIL also closed a buy tender for two cargoes to be supplied in February whereas PTT of Thailand closed a buy tender for six cargoes in the middle of January.
Besides spot, Bangladesh receives five to six spot cargos every month under two different long-term contracts signed with Qatargas and Oman Trading International now renamed as OQ.