Govt to import 6.72m units LNG from Singapore

Staff Correspondent

18 February, 2021 12:00 AM printer

Govt to import 6.72m units LNG from Singapore

The government has cleared two proposals for procuring 67.20 lakh units liquefied natural gas (LNG) from Singapore spot market at a total cost of nearly Tk 6.24 billion to cater to growing demand for gas in the country.

The Cabinet Committee on Government Purchase (CCGP) gave nod to the proposals at a meeting held with Finance Minister AHM Mustafa Kamal on Wednesday.

“Approval has been given to LNG procurement proposals from Singapore spot market to meet emergency needs for gas while keeping the long term LNG procurement contracts intact,” Kamal told reporters after the meeting.

Under one proposal, Petrobangla will procure 33.60 lakh British Thermal Unit (MMBTU) LNG from Vitol Asia Pte Ltd, Singapore under the 6th LNG cargo with a cost of around Tk 3.11bn. Cost of per unit LNG will cost around $9.3123.

Petrobangla will procure another 33.60 lakh MMBTU LNG from the same Singaporean company at a cost of Tk 3.13bn. In this case, per unit LNG will cost $9.3611, Cabinet Division Additional Secretary Abu Saleh Mostafa Kamal informed.

LNG price in the spot market usually remains higher than that of long-term contracts as price fluctuates frequently in the spot market, the finance minister said.

The government purchased an LNG cargo in October last at $3.88 per MMBTU cost when price was much lower in the international market.

The government cut supply of imported LNG to the national grid by more than 200 MMBTU in January after LNG price jumped.

S&P Global Platts’ Japan-Korea-Marker (JKM), which is used as a reference point for Asian spot LNG prices, rose to $28.221 per MMBTU in January for a cargo for delivery in February.

Kamal said that the government often can’t purchase LNG under the long-term contracts for which it has been trying to procure LNG from the spot market.

Petrobangla is currently supplying only 2,700mmcfd of gas against the demand for 3,500mmcfd.

In reply to a question, Kamal said that Vitol Asia Pte Ltd, Singapore is not blacklisted in Bangladesh while the government usually makes any procurement considering the interest of the country.

The finance minister also informed that the concerned ministry would be asked to look into whether the company is blacklisted in any country, adding that updates in this regard might be available in the next meeting.

The CCGP approved another proposal under which the Mazid Sons Constructions Ltd will construct a 12-storey bachelor officer’s quarters, 10-storey force barrack and 8-storey DAD mess cum MT shed at RAB headquarters with around Tk 1.92 billion under the WD-1(b) lot of the project for constructing RAB Forces headquarters.

Besides, in another proposal approved in the meeting, the joint venture of Bangla         

Builders Ltd and L JI will construct a 15-storey residential building at Sylhet district police lines with around Tk 596.3mn under the WD-3 (a) lot of the project for building nine residential towers for Bangladesh Police in different parts of the country.

Besides, the CCGP meeting approved another proposal under which the Padma Associates & Engineers Ltd (PAEL) will construct two 20-storey residential buildings for government officials at the zone-A of Azimpur government colony with over Tk 1.76 billion.

Prior to the CCGP meeting, a meeting on the Cabinet Committee on Economic Affairs was held virtually with the finance minister in the chair.

The meeting approved in principle a proposal for procuring 25 wheel excavators for pourashavas under Direct Procurement Method (DPM) by the LGED on emergency state purpose.

Besides, the Ministry of Food apprised the meeting that the revised demand for food grains in the current fiscal year (FY21) is 24,55,007 metric tons including 18,64,829 metric tons of rice and 5,90,178 metric tons of wheat.

The meeting was informed that the government would have to collect more 14,49,529 metric tons of food grains in the current fiscal year.