The government has given the green light to acquire 67.20 lakh tonnes of liquefied natural gas (LNG) from the international spot market. This purchase, valued at Tk 1,243 crore, aims to bolster the country’s energy reserves.

The decision came during a meeting at the secretariat in Dhaka, chaired by Finance Minister AHM Mustafa Kamal. 

The move signifies a proactive approach to tackling the energy crisis in Bangladesh.

The LNG procurement plan includes agreements with two international companies. Switzerland’s TotalEnergies Gas & Power Ltd will supply 33.60 lakh MMBTUs of LNG, priced at $13.77 per unit. Simultaneously, Vitol Asia Pte Ltd from Singapore will deliver an equivalent quantity of super-chilled fuel, each unit costing $14.97.

Bangladesh heavily relies on imported LNG to fulfill around 25% of its gas needs, as domestic production falls short of the demand. 

Last year, due to the Russia-Ukraine conflict, global LNG prices surged, prompting Bangladesh to ration gas supplies and temporarily halt LNG purchases from the international spot market to safeguard foreign currency reserves.

In a turn of events, the government re-entered the spot market in February, seizing the opportunity as LNG prices dropped by over 70% from the previous year’s record high of $70 per MMBtu. 

This strategic move aimed to enhance electricity production ahead of Ramadan and the summer season.

Aside from the LNG acquisition, the cabinet meeting also greenlit other important procurements:

• Import 30,000 tonnes of superphosphate fertilizer from Morocco’s OCP Group, valued at Tk 129.10 crore, with each tonne priced at $393.
• Purchase of 40,000 tonnes of di-ammonium phosphate (DAP) from Saudi-based Ma’aden at a total cost of Tk 237.61 crore, equating to $542 per tonne.
• Approval for the Payra Port Authority to procure two mobile harbor cranes and associated equipment worth Tk 109.53 crore for the Payra Sea Port. Saif Powertec Ltd will deliver these items.

These decisions reflect the government’s commitment to addressing key issues, including energy shortages and agricultural needs, while ensuring efficient port operations. 

Bangladesh continues to adapt to dynamic market conditions to secure its energy and economic stability.