The Bangladesh government has approved emergency imports of 100,000 tonnes of diesel and two LNG cargoes to stabilize domestic energy supplies amid global market disruptions.
The decision was taken at a virtual meeting of the Cabinet Committee on Government Purchase on Saturday, chaired by Finance Minister Amir Khasru Mahmud Chowdhury.
The diesel import is expected to cost over Tk 689 crore, while the LNG procurement could reach around Tk 1,560 crore. Officials said the move aims to meet urgent energy demand and prevent potential supply shortages.
Under the approval, 100,000 tonnes of 50 ppm sulphur diesel will be imported directly from Kazakhstan-based Kazakh Gas Processing Plant LLP. The total cost is estimated at $55.99 million, or approximately Tk 689.29 crore, with a price of $560 per tonne, equivalent to $75.06 per barrel.
The committee also approved the import of two LNG cargoes from Singapore-based Aramco Trading Singapore Pte Ltd. The cost is projected at around Tk 1,560 crore, with prices slightly above $19 per MMBtu, although the final rate may fluctuate depending on global market conditions.
Bangladesh Petroleum Corporation (BPC), the state-owned entity responsible for importing, storing, processing, and distributing petroleum products, will manage the diesel imports. BPC typically sources 50% of fuel through government-to-government agreements and the remainder through international tenders.
Officials said the emergency procurement was necessary due to geopolitical tensions in the Middle East, which have disrupted global energy supplies. Restrictions on shipping through the Strait of Hormuz following US-Israel military actions, along with limited LNG exports from Qatar and Oman, have caused significant price volatility and supply uncertainty.
Existing BPC suppliers, including Unipec Singapore and Petco Trading Labuan, recently declared force majeure, citing their inability to meet scheduled deliveries for April. This raised concerns over uninterrupted fuel supply, prompting the government to turn to alternative sources under emergency procurement provisions.
The diesel will be shipped from Kazakhstan via Batumi port in Georgia and unloaded at Chattogram port. A BPC evaluation and negotiation committee confirmed that the diesel meets national quality standards, including specifications set by the Bangladesh Standards and Testing Institution (BSTI). Terms for price, parcel size, payment, and demurrage have been mutually agreed.
Sources noted that the proposed diesel price is competitive, $8.043 per barrel lower than the Arab Gulf market rate as of April 1, although the final price may vary depending on benchmark rates and exchange fluctuations.
Cabinet Also Approves Large-Scale Diesel, Octane Imports
In a separate decision, the Cabinet Committee on Economic Affairs approved three proposals in principle for importing a total of 16 lakh metric tonnes of diesel and one lakh metric tonnes of octane to meet growing domestic energy demand amid ongoing global geopolitical instability.
The approvals came during the eighth meeting of the Cabinet Committee on Economic Affairs, held virtually chaired by the finance minister.
The proposals were submitted by the Energy and Mineral Resources Division.
The first proposal calls for importing 10 lakh metric tons of EN590-10 PPM diesel and one lakh metric tons of octane (Gasoline 95 Unleaded) from UAE-based DBS Trading House FZCO through the Direct Procurement Method (DPM) under international purchase.
The second proposal involves procuring one lakh metric tons of 50 PPM sulphur diesel from Oman-based Maxwell International SPC, also through DPM.
The third proposal seeks to import five lakh metric tons of High-Speed Diesel (AGO) from Kazakhstan-based Kazakh Gas Processing Plant LLP via DPM.
All three proposals were approved to ensure uninterrupted fuel supply in the context of unstable geopolitical conditions arising from the Middle East, officials said.