Bangladesh is expected to double its imports of Liquefied Natural Gas (LNG) from the spot market as demand rises and to capitalise on low prices of the super-chilled fuel. Rupantarita Prakritik Gas Company is seeking 1,38,000 cubic metres of so-called lean LNG, which has a lower energy content, for Dec. 9-10 delivery.
Rupantarita, a subsidiary of Petrobangla, may issue a second tender next week for a similar volume of lean LNG for end-December delivery. The second tender will increase the number of LNG cargoes purchased under short-term, to two per month from one currently. The imports are needed to meet rising demand and as prices remain lower than normal.
Spot LNG prices for Asia were estimated at $5.50 per million British thermal units (mmBtu), which is up from the record low hit earlier this year but still 29.6% below its five-year average. Rupantarita Prakritik bought Bangladesh’s first spot LNG cargo ever from trading house Vitol at $3.8321 per mmBtu for delivery over late September to early October. The company is also currently assessing offers for its second spot cargo for Nov. 12-13 delivery.
Bangladesh, with a population of about 160 million people, is expected to become a major LNG importer in Asia, along with Pakistan and India, as domestic gas supplies fall. The country currently has two floating storage and regasification units (FSRUs) with a total regasification capacity of 1 billion cubic feet per day, equal to about 7.5 million tonnes a year. Bangladesh imported 3.89 million tonnes of LNG in 2019 through two long-term contracts with Oman and Qatar.
