Govt short lists 17 companies for buying LNG

DHAKA, The government has short listed 17 companies

for buying Liquefied Natural Gas (LNG) to meet the growing demand of energy

in the country.

The Cabinet Committee on Economic Affairs approved a draft of Master Sale

and Purchase Agreement (MSPA) with the 17 companies in connection to the

purchase, Finance Minister AHM Mustafa Kamal told journalists at the

Secretariat in the capital this afternoon.

The Finance Minister said the government has already taken initiative to

procure LNG from the spot market apart from going on with long-term

agreements with various companies.

He said out of 43 companies which submitted their Expression of Interest

(EOI) as per the Speedy Supply of Power and Energy (Special Provision) Act,

2010, the cabinet committee has selected the 17 companies out of the

shortlisted 29 companies adding that the purchase will be made from the spot

market.

The government started importing LNG in August last year in the face of

falling domestic production.

Since then, Kamal said the government has spent Tk 14,000 crore to

subsidize the import adding that the price of imported gas was much higher

than the price which was produced locally.

Gas production cost stands at Taka 14 for per cubic metre, after the

imported LNG is mixed with the locally produced gas.

At the moment, the government sells per cubic metre at Taka 7.17.

Source: Bangladesh Sangbad Sangstha (BSS)