Bangladesh seeks LNG cargo for December delivery

11/23/2020

Bangladesh's state-owned Rupantarita Prakritik Gas Company is seeking one LNG cargo for delivery in December through a tender, two officials familiar with the matter said.

It has sought a cargo of 138,000 cubic metres for delivery over Dec. 22-26 in a tender closing on Nov. 25 that was reissued after it was cancelled because of high offered prices.

Rupantarita Prakritik Gas Company, which is in charge of Bangladesh's LNG imports, had earlier cancelled two tenders for November and early December delivery, again citing high prices.

Bangladesh has two long-term contracts with Qatargas and Oman Trading International.

With domestic gas production dwindling, the nation of 160 million people is set to be a significant player in the global LNG market, alongside Pakistan and India.

It bought Bangladesh's first ever spot LNG cargo from Vitol at $3.8321 per mmBtu for delivery over late September to early October. But since then its LNG imports plan from the spot market has faced a setback amid a surge in prices.

Asian spot prices for LNG slipped this week as supply from Malaysia returned after a brief hiatus, although a colder-than-expected winter in Northeast Asia supported prices, that jumped more than 40% this month.

The average LNG price for January delivery into Northeast Asia was estimated at about $6.40 per MMBtu, while the price for cargoes delivered in December was estimated to be about $6.70 per MMBtu, industry sources said.

Bangladesh currently has two FSRUs with a total regasification capacity of 1 billion cubic feet per day - equal to about 7.5 million tons a year.

(Reporting by Ruma Paul; editing by David Evans)