Govt to buy 3 LNG cargoes from spot market

The government has approved the purchase of three cargoes of liquefied natural gas (LNG) from the spot market at a total cost of Tk 1,442 crore, with the average price set at about $11 per million British thermal unit (MMBtu).

The approvals came at a meeting of the Advisers Council Committee on Government Purchase at the Secretariat in Dhaka yesterday.

Finance Adviser Salehuddin Ahmed chaired the meeting.

The proposals were placed by the Energy and Mineral Resources Division.

One cargo will be imported from M/S TotalEnergies Gas & Power Ltd of the United Kingdom at a unit price of $11.44 per MMBtu, with the cost amounting to Tk 481 crore.

The second cargo will be procured from the same company, M/S TotalEnergies Gas & Power Ltd of the United Kingdom, at a unit price of $11.34 per MMBtu. This will cost Tk 476 crore.

The third cargo will be procured from the same entity in the UK, at a unit price of $11.54 per MMBtu, and total cost amounting to Tk 485 crore.

Briefing reporters after the meeting, the finance adviser said previously, there was pressure on the government to raise energy prices, particularly gas, every month or two.

But the interim government held back following various calculations by the Energy and Mineral Resources Division.

"It is a good thing," said Ahmed, according to Bangladesh Sangbad Sangstha (BSS).

"Our aim is to ensure the necessary supply of LNG so that no such pressure is created on us to raise the energy price, as such rises can impact the consumers as well as the industries," he said.

He added that the government was focusing on strengthening LNG supply while easing the burden on public finances. "But, it is hard to predict what will happen in the future."

The adviser said that LNG was being purchased at a comparatively reasonable rate.