Bangladesh to buy one cargo of LNG from spot market

The Bangladesh government has decided to buy one cargo of liquefied natural gas from Japan’s Jera Co at a ‘spot market’ rate in an effort to rapidly increase the fuel supply and power production.

Syed Mahbub Khan, additional secretary of the Cabinet Division, said the total cost of the shipment will be Tk 6.9 billion.

The state-run Rupantarita Prakritik Gas, a company under Petrobangla, will buy 3.36 trillion Btu of LNG at $16.5 per unit, reports bdnews24.com.

The proposal was one of six passed by the cabinet committee on government purchase at a meeting on Wednesday, led by Finance Minister AHM Mustafa Kamal.

The government has moved back to the LNG spot market to keep up with the high power demand during the irrigation season, Ramadan and the oncoming summer, Prime Minister Sheikh Hasina said on Feb 8.

The government went ahead with buying LNG at higher rates for uninterrupted supply to captive power plants in the export-oriented industries, the prime minister had said in parliament.

BSS report said the committee also approved a proposal to procure some 11.0 million litres of soybean oil from City Edible Oil Ltd with around Tk 1.92 billion.

The state-run Trading Corporation of Bangladesh (TCB) will procure the soybean oil. The cost of per litre soybean oil would be Tk 174.5 against the previous per litre price of Tk 176.88.

Additional Secretary Mahbub informed that the TCB would also procure some 8,000 metric tonnes of lentil from a Turkish company with around Tk 734.4 million where per tonne lentil would cost $158.

Besides, the Bangladesh Chemical Industries Corporation (BCIC) under the Ministry of Industries would procure some 20,000 metric tonnes of phosphoric acid for DAP Fertilizer Company Ltd, Chattogram with around Tk 1.20 billion. M/S Sun International FZE, UAE would supply this consignment with per tonne costing $559.5 down from the previous price of $688.5.

The BCIC would also procure some 25,000 metric tonnes of rock phosphate for the TSP Complex Limited, Chattogram with around Tk 880.6 million. M/S Agro-Industrial Input, Dhaka would supply such a quantity of rock phosphate where per ton would cost $329.85 down from the previous price of $334.

Apart from these, the Cabinet Division additional secretary informed that the work on constructing a 730-metre long bridge over River Khoirabad under Nalchity upazila in Jhalokati district was awarded to the joint venture of MM Builders Engineers Ltd and M/S Podder Enterprise with around Taka 1.23 billion. The bridge will be constructed under the project for constructing important bridges on rural roads.