Bangladesh to buy one spot LNG cargo from Vitol
Bangladesh government has greenlit the purchase of a spot cargo of LNG from global commodity trader Vitol, Bangladesh Sangbad Sangstha (BSS), the country's official news agency, reported on January 31.
The approval was granted during a meeting of the Cabinet Committee on Government Purchase (CCGP), presided over by finance minister Abul Hassan Mahmood Ali. Vitol Asia will be the supplier of the LNG cargo, and the agreed-upon price stands at $9.93/mn British thermal units (mn Btu), according to BSS.
Earlier this month, Petrobangla, the state-owned energy company, received approval to secure a spot LNG cargo from Total Energies Gas & Power, a unit of France’s TotalEnergies. The price for this deal was set at $10.88/mn Btu.
Amidst the backdrop of declining global gas prices, Bangladesh has also undertaken efforts to secure fresh long-term agreements. It recently signed a long-term LNG deal with QatarEnergy Trading, the LNG trading arm of QatarEnergy. In June last year, Bangladesh signed a deal with Oman. Last month Petrobangla got approval to sign long-term deals with Summit Oil and Shipping Company and Excelerate Energy.
Bangladesh already has existing LNG import deals with Oman Trading International and Qatargas. The country has two floating LNG terminals, each with a capacity of 500 million ft3/day, located in Maheshkhali. One of these terminals is operated by Summit, while the other is managed by Excelerate Energy.