Dhaka: The government has granted approval for the acquisition of two cargoes of liquefied natural gas (LNG) from BP Singapore Pte Ltd, amounting to over Tk 1,850 crore, which includes advance income tax. This decision is part of ongoing efforts to ensure a steady supply of gas.
According to United News of Bangladesh, the approval came during a meeting of the Cabinet Committee on Government Purchase (CCGP) at the Bangladesh Secretariat, chaired by Finance Minister Amir Khosru Mahmud Chowdhury. The proposal for the purchase was submitted by the Energy and Mineral Resources Division under the international Request for Quotation (RFQ) process, adhering to Rule 105(3)(a) of the Public Procurement Rules (PPR), 2025.
The proposal outlines the purchase of one cargo for delivery on August 23-24 from BP Singapore at a rate of $21.878 per million British thermal units (MMBtu), totaling Tk 927,50,60,833.92, including advance income tax. The second cargo, scheduled for delivery on September 4-5, is priced at $21.778 per MMBtu, amounting to Tk 923,26,66,369.92, including tax. The total expenditure for the two cargoes is approximately Tk 1,850.77 crore.
In a separate development, the government is contemplating the purchase of two LNG cargoes from Blackcube International Ltd, UK, at a negotiated rate of $15.50 per MMBtu for delivery on August 17-18 and August 22-23. The proposal highlights that LNG prices under the Sale and Purchase Agreements (SPA) are determined based on the Japan Korea Marker (JKM).
The average JKM price published by Platts from June 16 to July 15 indicates that the applicable JKM price for LNG delivery in August 2026 is $16.808 per MMBtu. Although Blackcube initially quoted $13.00 per MMBtu, the price was later negotiated to $15.50 per MMBtu due to market volatility, higher spot-market prices, and limited time to arrange cargoes from alternative sources.
The spot LNG price at JKM was recorded at $21.289 per MMBtu on August 11. Given the current market conditions, procuring the two cargoes from Blackcube at the negotiated price could result in savings of approximately $37.05 million compared to the spot market.
Additionally, the government is set to receive two LNG cargoes from MAXWELL International SPC, Oman, in 2026 at JKM plus $0.54 per MMBtu under an existing arrangement. The negotiation for Blackcube cargoes was conducted following the provisions for negotiation in direct procurement under the Public Procurement Act, 2006, and Rules 97, 98, and 99 of the PPR 2025.
Bangladesh’s increasing reliance on imported LNG to meet domestic gas demand, due to declining domestic gas production, underscores the importance of timely procurement of spot LNG cargoes to maintain gas supplies for power plants, industries, and other consumers.