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Govt to buy three LNG cargoes at more than double the price from spot market

Of the three cargoes, one will be imported from the United Kingdom’s TotalEnergies Gas & Power Ltd at a cost of around BDT 9.07 billion. The price has been set at $21.58 per MMBtu.

The government has decided to purchase three cargoes of liquefied natural gas (LNG) from the spot market at more than double the previous price to maintain a stable gas supply in the country amid the ongoing war situation in the Middle East. The total cost of the three cargoes will exceed BDT 26.54 billion. Of these, two cargoes will be imported from South Korea and one from the United Kingdom.

The proposal to import the LNG cargoes was approved at a meeting of the Cabinet Committee on Government Purchase on Wednesday. The meeting was chaired by Finance Minister Ameer Khasru Mahmud Chowdhury, who convenes the committee.

Of the three cargoes, one will be imported from the United Kingdom’s TotalEnergies Gas & Power Ltd at a cost of around BDT 9.07 billion. The price has been set at $21.58 per MMBtu.

On December 9 last year, the government had decided to purchase one LNG cargo from the same company for BDT around 4.36 billion, when the price was set at $10.37 per MMBtu. This means the government is now importing LNG from the UK-based company at more than double the previous price.

Similarly, LNG imports from South Korea will also cost more than double compared to previous purchases. One cargo will be bought from South Korea’s POSCO International Corporation at a cost of around BDT 8.73 billion. In this case, the price has been set at $20.76 per MMBtu.

Another cargo will also be imported from the same South Korean company at the same cost of around BDT 8.73 billion, with the price again set at $20.76 per MMBtu. This indicates that LNG imports from South Korea will also cost more than double compared to the prices in December.

Sources at the meeting said the Energy and Mineral Resources Division placed the proposal to purchase the three LNG cargoes outside the scheduled agenda. The LNG will be procured from the spot market through the international quotation collection process in accordance with Rule 105(3)(a) of the Public Procurement Rules 2025. The cargoes are expected to arrive on April 5–6, April 9–10, and April 12–13, respectively.

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