The Bangladesh government on Wednesday moved to secure LNG supplies through a series of procurement decisions, recommending the purchase of several spot cargoes and a long-term supply of 117 LNG cargoes up to 2038, while in-principle approval was given to another eight cargoes to meet urgent gas demand.
The decisions were taken at separate meetings of the Cabinet Committee on Government Purchase (CCGP) and the Cabinet Committee on Economic Affairs, both chaired by Finance Minister Amir Khosru Mahmud Chowdhury.
The CCGP recommended purchases of LNG from Blackcube International of the UK, Maxwell International SPC of Oman and Zhenyu Shipping Co Ltd of Hong Kong, besides a long-term government-to-government arrangement with Gunvor USA LLC.
Separately, the Economic Affairs Committee gave policy approval for the direct purchase of eight LNG cargoes from four suppliers amid what the proposal described as an unstable geopolitical situation and the need to meet urgent domestic gas demand.
CCGP recommends LNG purchases
The CCGP considered a proposal to procure eight LNG cargoes through direct procurement from Blackcube International Ltd of the UK, Global Fuel Supplies Pte Ltd of Australia, Plentitude Energy Sdn Bhd of Malaysia and Maxwell International SPC of Oman.
Of the proposal, the committee recommended purchasing two cargoes from Blackcube at $15.50 per MMBtu and two cargoes from Maxwell at JKM plus $0.54 per MMBtu.
The committee also recommended the purchase of two LNG cargoes from Zhenyu Shipping Co Ltd of Hong Kong for 2026 at $14.95 per MMBtu.
A separate government-to-government proposal involving 117 LNG cargoes from Gunvor USA LLC for 2026-2038 was also recommended.
Under the recommendation, five cargoes would be purchased in 2026, six in 2027 and three in 2028 at JKM plus $0.0875 per MMBtu.
For 2028, another six cargoes, and from 2029 to 2038 10 cargoes annually, would be purchased at a formula of 121% HH + $5.20 per MMBtu, according to the document.
Eight more LNG cargoes get policy nod
At the Economic Affairs Committee meeting, the Energy and Mineral Resources Division placed a proposal for urgent LNG purchases through the Direct Procurement Method.
The proposal sought eight cargoes in total, with two cargoes each from Zhenyu Shipping Co Ltd of Hong Kong, PETRONAS LNG Ltd of Malaysia, China Runze Holdings Group Ltd and DARAB Inc of the United States.
The committee recommended the proposal for in-principle policy approval.
Another proposal before the Economic Affairs Committee sought policy approval for direct purchase of two LNG cargoes from China Runze Holdings Group Ltd, while a separate proposal sought policy approval for two cargoes from DARAB Inc of the United States. Both received the committee’s recommendation for policy approval.
The LNG proposals were placed against the backdrop of the geopolitical situation arising from the Iran-US-Israel war, with the documents citing the need to meet urgent gas demand.
Refined fuel and other energy-related decision
The CCGP also recommended the purchase of 20 million litres of refined soybean oil through international open tender at an estimated cost of Tk 282.55 crore, at $1.150 per litre, from PT Trinity Cahya Energy of Indonesia.
The committee also considered a proposal to procure 20,000 tonnes of refined fuel oil through international open tender. The proposal was placed by the Commerce Ministry and named PT Trinity Cahya Energy as the recommended supplier.
Note: The CCGP document’s scanned text presents the quantity and unit description inconsistently in places. The report above retains the figures and terminology shown in the document rather than attempting to reconcile them with outside information.
River dredging gets policy approval
The Economic Affairs Committee gave policy approval for direct procurement of dredging and ancillary works on the Jinai, Sutia and Kachamatia rivers.
The works are part of a Bangladesh Inland Water Transport Authority project for restoring river flow during the dry season, improving navigation and flood management.
Family Card equipment
The CCGP recommended procurement of Android tablets through the direct procurement method for implementation of the Family Card under the Strengthening Social Protection for Improved Resilience, Inclusion, and Targeting (SSPIRIT) Project.
The estimated procurement cost is Tk 320.71 crore, with Dockyard and Engineering Works Ltd, Bangladesh Navy, Sonakanda, Bandar, Narayanganj, named as the recommended supplier.
The Economic Affairs Committee separately gave in-principle policy approval for the same Family Card-related Android tablet procurement under the SSPIRIT project.
Fertiliser imports
The CCGP recommended the import of 80,000 tonnes of granular urea from SABIC Agri-nutrients Company of Saudi Arabia for the 2026-27 fiscal year.
The purchase price is stated at Tk 209.06 crore, with the price set at $421.67 per tonne.
It also recommended importing 40,000 tonnes of DAP from OCP Nutricrops, Morocco, under a G2G agreement at Tk 441.91 crore, or $891.67 per tonne.
Another 30,000 tonnes of TSP would be imported from OCP Nutricrops at Tk 251.76 crore, or $677.33 per tonne.
A proposal to extend for another year a technical service contract with MHI, Japan, for maintaining uninterrupted production at the Ghorashal Palash Fertiliser PLC was withdrawn from the meeting at the ministry’s request.
Rice, sugar and lentils
The CCGP recommended importing 100,000 tonnes of non-basmati parboiled rice from Vietnam under a G2G arrangement.
The purchase price is Tk 515.05 crore, at $416 per tonne, with Vietnam Southern Food Corporation (VINAFOOD II) named as the recommended supplier.
It also recommended purchasing 25,000 tonnes of sugar through international open tender at Tk 157.86 crore, or $514 per tonne, from PT Trinity Cahya Energy of Indonesia.
A further proposal to purchase 10,000 tonnes of lentils through a national open tender was recommended at Tk 78.96 crore, with the price set at Tk 78.96 per kilogram. Nabil Naba Foods Ltd was named the recommended supplier.
The proposal to purchase 20 million litres of refined palm olein through a national open tender was withdrawn from the meeting at the Commerce Ministry’s request.