Govt recommends LNG purchase, holds back fuel deals

The Cabinet Committee on Government Purchase has recommended the approval of a proposal to directly purchase liquefied natural gas (LNG) from TotalEnergies to meet the country’s energy demand.
However, the committee withheld final approval for five proposals to procure diesel, Jet A-1 and furnace oil for September-December 2026, directing the authorities to negotiate with the recommended bidders over proposed premiums and base prices before finalising the deals.
The decisions were taken at a meeting of the Cabinet Committee on Government Purchase at the Secretariat on Wednesday, chaired by Finance Minister Amir Khosru Mahmud Chowdhury.
The committee recommended the proposal to purchase LNG directly from TotalEnergies at a price linked to the international Japan Korea Marker (JKM). Under the proposal, the price of each unit of LNG will be determined by adding $0.06 to the JKM price.
Meanwhile, the government proposed purchasing diesel, Jet A-1 and furnace oil through international open 
tenders under five packages for September-December 2026.
The five packages have a combined estimated procurement cost of around Tk11,914 crore.
The committee did not give final approval to any of the five packages. Instead, it directed the authorities to negotiate with the recommended suppliers on the proposed premium and base prices and place the negotiated prices before the committee at its next meeting.
Under the package PG-01, the government proposed purchasing between 2.20 lakh and 2.50 lakh tonnes of diesel and 50,000 tonnes of Jet A-1, at an estimated cost of Tk4,803.02 crore. Trafigura Pte Ltd has been recommended as the supplier for the package.
The proposal under package PG-02 involves purchasing between 2 lakh and 2.30 lakh tonnes of diesel and 40,000 tonnes of Jet A-1, with an estimated cost of Tk4,326.89 crore. Vitol Asia Pte Ltd has been recommended for the package.
Under PG-03, the government proposed purchasing between 25,000 and 50,000 tonnes of diesel at an estimated cost of Tk792.79 crore. Unipac Singapore Pte Ltd has been recommended as the supplier.
As per the proposal in PG-04, between 50,000 and 75,000 tonnes of diesel would be purchased at an estimated cost of Tk1,189.87 crore. Vitol Asia Pte Ltd has again been recommended as the supplier.
Under the package PG-05, the proposal is to purchase between 75,000 and 1 lakh tonnes of furnace oil, with an estimated cost of Tk801.47 crore. Trafigura Pte Ltd has been recommended for the package.
Government to buy 9,000 tonnes of chickpeas
The committee also recommended the purchase of 9,000 tonnes of chickpeas through an international open tender at a total cost of Tk76.21 crore. Including VAT and taxes, the price of chickpeas will be Tk84.67 per kg.
Australian company Aust-Grain Exports, based in Horsham, Victoria, has been recommended to supply the chickpeas.
One crore litres of rice bran oil
The government has also recommended the purchase of one crore litres of refined rice bran oil in two-litre PET bottles through a local open tender.
The total procurement cost will be Tk181.50 crore, with the price, including VAT and taxes, set at Tk181.50 per litre.
Four companies have been recommended to supply the oil.
Green Oil and Poultry Feed Industries will supply 20 lakh litres, Pradhan Oil Mills Ltd 20 lakh litres, Majumdar Bran Oil Mills Ltd 30 lakh litres and Majumdar Products Ltd 30 lakh litres.
According to the proposal, Majumdar Products Ltd’s portion will be worth Tk54.45 crore. The value of the supplies from the other three companies will be determined according to their recommended quantities and tendered prices.