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Bangladesh continued to import two spot cargoes for August

Bangladesh will import two spot cargoes of LNG in August and around six cargoes from the term suppliers- Qatar and OQ of Oman under the term contract. Bangladesh sought to import two cargoes in July and imported four in June this year.  

A wholly owned subsidiary of state-owned Petrobangla- Rupantarita Prakritik Gas Company Ltd (RPGCL) has been mandated to import LNG has awarded a buy tender to US major Excelerate Energy for $13.35/mBtu for Aug 7-8 delivery window, according to Reuters report. Swiss trading house Vitol won a cargo to be delivered during Aug 25-26 window for $12.70/mBtu. The previous two cargoes for delivery in July were awarded one each to Excelerate Energy and Gunvor for above $13. Excelerate Energy won two cargoes back-to-back one each for July and August delivery and apparently, both were priced in mid-$13 compared to Gunvor cargo in less than $13 for delivery in July and one awarded to Vitol for in high -$12 for delivery in August.

From the long-term contracts, Oman will supply four cargoes in August like it had been slated for July and two from OQ of Oman in August. Bangladesh needs majority of LNG for power generation and some volume for industrial major like textile industry consumers and fertilizer companies.

Under the Qatari contract, with Qatar’s RasLaffan Liquefied Gas Company Ltd, Bangladesh receives approximately 40 cargoes annually. So far till June, Bangladesh received 20 term cargoes under 1.8 to 2.5mil mt/year contract signed for 15 years. Under the annual delivery programme (ADP), Qatar will supply 40 cargoes to Bangladesh in 2023.

In its another term contract with OQ Trading Ltd, previously known as Oman International (OTI), till June, Bangladesh had received seven cargoes. Under the government-to-government level contract between Oman and Bangladesh for 1 to 1.5mil mt/year LNG for 10 years, Bangladesh receives around 20 cargoes annually. For the current year, Oman will supply total 16 cargoes under ADP.