Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC

Bangladesh imports first LNG from Oman Trading as terminal runs full

DHAKA, (Reuters) - Bangladesh has imported its first liquefied natural gas (LNG) cargo from Oman Trading International, its long-term supplier of the super-chilled fuel, after construction at a domestic pipeline was completed.

The LNG tanker Cape Ann, with a capacity of about 135,000 cubic metres, arrived at the floating storage regasification unit (FSRU) Excellence, offshore Bangladesh’s Moheshkhali island, on Jan. 29 after loading LNG from Nigeria earlier this month, according to an official from state-owned energy company Petrobangla and data from Refinitiv Eikon.

Bangladesh’s 1 million tonnes per annum (mtpa) deal with Oman had been expected to start later this year after a second FSRU started operations. The country also has an ongoing 2.5 mtpa deal with Qatar’s RasGas.

“We had been looking for one more cargo after a pipeline was ready. We started discussions with Qatar and Oman Trading, but Qatar was unable to supply more for now while Oman Trading came forward to start supplying LNG,” said the official from Petrobangla, who asked to remain unidentified since he is not authorized to speak to the media.

He added that the Excellence, with a regasification capacity of 500 million cubic feet per day, is now able to run at full capacity after construction of a 30-km (19-mile) gas transmission pipeline in southern Bangladesh was completed in late November.

Bangladesh has a 10-year LNG import deal with Oman Trading International. That LNG will be priced at 11.9 percent of the three-month average price of Brent crude oil plus a constant price of 40 cents per million British thermal units (mmBtu).

Under its 15-year deal with Qatar, Bangladesh agreed to pay 12.65 percent of the three-month average price of Brent oil plus a constant of 50 cents per mmBtu.

Separately, the company is moving ahead with plans to import LNG by shortlisting about 30 companies out of a total of 42 for its spot tender process, said a second Petrobangla official, who also asked not to be identified.

The companies include Trafigura, Gunvor, Vitol Asia, Itochu Corp, Royal Dutch Shell, Total SA, Chevron Corp, Woodside Petroleum Ltd, RasGas, AOT Energy and Engie SA, he said.

Petrobangla plans to sign sales and purchase agreement with the shortlisted companies and traders who have signed these agreements will then be able to participate in spot tenders the company will issue later when cargoes are needed, the official added. (Reporting by Ruma Paul in DHAKA; writing by Jessica Jaganathan; editing by Christian Schmollinger)

Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo


Editorial Comment
-Adrienne Blume
The $26-B small-scale LNG market is gaining exciting traction this year.
Regional Focus: Singapore moves closer to becoming a global LNG trading hub
-Eugene Gerden
Amid strong demand for LNG in the Asia-Pacific region and the need to secure regular gas supplies on a large scale, Singapore may become a major regional hub for LNG trade.
Show Preview
-Adrienne Blume
For the third time in its 47-yr history, Gastech is returning to Houston, Texas.

Reliable Operations & Saving OPEX for Gas Plant Refrigeration – Selecting the right technologies

Register Now

By selecting integrally geared turbocompressors for gas plant refrigeration duty coupled with a mag bearing turboexpander, operators get the added values of technology with highly reliable operations and reduced OPEX. Join Sami Tabaza and Chris Blackmer from Atlas Copco Gas and Process for a presentation followed by Q&A surrounding the turbocompressor and turboexpander technologies that can efficiently and reliably fit your gas plant design and operation to get the advantages of both technologies.

June 18, 2019 10:00 AM CDT

Register Now


Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2019 Gulf Publishing Holdings LLC.