Singapore — Bangladesh expects to import its first LNG cargo from the spot market around Sept. 15-20 with a vessel carrying 138,000 cu m of lean LNG, managing director of state-run Rupantarita Prakritik Gas Company Limited Md Kamruzzaman told S&P Global Platts Aug. 4.
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He said RPGCL had already shortlisted 14 global companies for spot supplies. "As this will be our first import of LNG from the spot market, we are careful with all the relevant procedures and pricing," he added.
The Bangladesh government had earlier constituted several committees to ensure a smooth start to LNG imports from the spot market, as its current imports are tied to fixed term contracts.
RPGCL, the state-run entity that oversees LNG imports, earlier signed a master sale and purchase agreement with 14 companies separately, in an effort to take advantage of low spot prices.
The companies include Japan's Mitsui, Marubeni Corp., Osaka Gas and Jera; Cheniere Marketing International, Vitol Asia, Trafigura and Diamond Gas International from their Singapore-based affiliates; Excelerate Energy, Woodside Petroleum, Eni, AOT Trading from Switzerland, Petronas and the joint venture of Summit Corp. and Summit Oil & Shipping of Bangladesh.
Purchasing LNG from the spot market will help diversify Bangladesh's LNG sources as well, Kamruzzaman said. Bangladesh, which started LNG imports on Sept. 9, 2018, imports lean LNG under long-term deals from Qatargas and Oman Trading International with five to six cargoes arriving every month.
Spot LNG providers will supply as per instructions, depending on demand. RPGCL will specify the quantity of spot LNG needed and blend it with domestic natural gas, which is sulfur-free and sweet gas, before it is delivered to end-users.
The imported spot LNG should have a gross heating value ranging between 1,025 Btu and 1,100 Btu per standard cubic feet, and be delivered on an ex-ship basis. RPGCL will procure spot LNG based on market prices, terminal availability, increased regasification capacity and downstream demand.
Bangladesh currently has two FSRUs, owned by US-based Excelerate Energy and local Summit Group, which regasify around 600 MMcf/d of LNG. They have the capacity to regasify around 500 MMcf/d each.