The government has approved the direct purchase of LNG from TotalEnergies, while holding back final approval for five fuel-import packages worth nearly Tk11,914 crore and ordering negotiations to bring down the quoted prices.
The decisions were taken at a meeting of the Cabinet Committee on Government Purchase at the Bangladesh Secretariat on Wednesday, chaired by Finance Minister Amir Khosru Mahmud Chowdhury.
The committee recommended procuring LNG from TotalEnergies at a price linked to the Japan Korea Marker (JKM), the key benchmark for spot LNG prices in Asia.
Under the proposed pricing formula, the LNG price will be set at the prevailing JKM price plus a premium of $0.06 per MMBtu.
The committee, however, stopped short of approving five separate packages for the import of diesel, Jet A-1 and furnace oil for September-December 2026.
Instead, it instructed the authorities to negotiate with the recommended bidders over their quoted premiums and base prices and submit the negotiated rates to the committee at its next meeting.
The five packages were floated through international competitive tenders, with a combined estimated procurement cost of about Tk11,914 crore.
Five fuel-import packages
Under the PG-01 package, the government proposed buying 220,000-250,000 tonnes of diesel and 50,000 tonnes of Jet A-1 at an estimated cost of Tk4,803.02 crore.
Trafigura Pte Ltd was recommended as the bidder for the package.
The PG-02 package involves 200,000-230,000 tonnes of diesel and 40,000 tonnes of Jet A-1, with an estimated cost of Tk4,326.89 crore. Vitol Asia Pte Ltd was recommended for the package.
The PG-03 package covers 25,000-50,000 tonnes of diesel at an estimated Tk792.79 crore, with Unipac Singapore Pte Ltd recommended as the bidder.
Another package, PG-04, involves 50,000-75,000 tonnes of diesel at an estimated Tk1,189.87 crore. Vitol Asia was again recommended.
The PG-05 package covers 75,000-100,000 tonnes of furnace oil at an estimated Tk801.47 crore, with Trafigura recommended as the bidder.
Price negotiation before approval
The committee’s decision means the recommended bidders do not yet have final government approval to supply the fuel.
The authorities must first negotiate the quoted premiums and base prices and secure rates considered acceptable by the government.
The revised offers will then be placed before the purchase committee for a fresh decision.
The move comes as the government faces substantial import requirements for both natural gas and petroleum products to meet domestic energy demand, making procurement prices an important factor in containing pressure on the energy import bill.
BSS Report added the Cabinet Committee on Economic Affairs (CCEA) today gave in-principle approval to a proposal for importing 18 cargoes of Liquefied Natural Gas (LNG) from Total Energies through the direct purchase method to meet the country’s emergency gas demand.
The approval was given at the CCEA meeting held at the Cabinet Division in the city with Finance Minister Amir Khosru Mahmud Chowdhury in the chair.
Under the approved proposal, Bangladesh will import two LNG cargoes per month from October 2026 to June 2027.
The agreement will also contain a provision for procuring additional LNG cargoes, if required, subject to mutual consent of the two parties.
The Energy and Mineral Resources Division placed the proposal before the committee.
The emergency direct procurement decision was taken against the backdrop of an unstable geopolitical situation and concerns over energy security arising from the ongoing conflict in the Middle East.