Int'l LNG suppliers asked to submit bid by Monday

Interested potential global liquefied natural gas (LNG) suppliers will have to submit their bids by Monday to supply first spot LNG cargo to Bangladesh.

State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) invited all 14 short-listed firms on Wednesday to quote prices of one LNG cargo from spot market having the capacity of around 138,000 cubic metres, a senior energy ministry official said on Sunday.

The first LNG cargo from spot market might deliver the fuel within late September to early October to reap benefits of low prices of the fossil fuel in international market.

Earlier, RPGCL signed the master sale and purchase agreement (MSPA) with 14 firms separately to take advantage of low prices of the fuel in the spot market and meet the country's growing demand.

The firms that were invited to submit bids to supply LNG from spot are Mitsui & Co Ltd, Marubeni Corporation, Osaka Gas Co Ltd, and Jera Co Inc. of Japan; Cheniere Marketing International LLP, Vitol Asia Pte Ltd, Trafigura Pte Ltd, and Diamond gas International Pte Ltd of Singapore; Excelerate Energy Ltd Partnership of USA, Woodside Petroleum Ltd of Australia, Eni S.p.A of Italy, AOT Trading AG of Switzerland, Petronas LNG Ltd of Malaysia, and the joint venture of Summit Corporation Ltd & Summit Oil & Shipping Co Ltd of Bangladesh.

Spot LNG prices have plunged to historic lows this year owing to lower demands due to milder-than-usual winter coupled with the Covid-19 outbreak and increased supply from the US and Australia.

Currently, Bangladesh has been importing lean LNG under long-term deals from Qatar's RasGas, which has recently merged with Qatargas and is renamed Qatargas, and the Oman Trading International (OTI).

The country started regular imports of LNG on September 9, 2018.

The spot LNG providers will supply the fuel to the country's LNG-receiving terminals according to instructions to be given time to time, depending on the demand.

The RPGCL would initially place proposals to these firms, specifying the quantity of spot LNG, for supplying to the LNG terminals.

The imported spot LNG would require to be blended with locally produced natural gas, which is sulphur-free and sweet gas, before it is delivered to end-users.

As a result, the imported LNG's sulphur content would be low.

The imported spot LNG should have a gross heating value ranging between 1,025 and 1,100 btu per standard cubic feet.

Spot LNG should be supplied on a delivered ex-ship basis and the vessel size should range between 125,000 and 220,000 cubic metres.

The RPGCL will procure spot LNG based on market prices, terminal availability, increased re-gasification capacity and downstream demand.

Currently, two FSRUs, owned by US-based Excelerate Energy and local Summit Group, are re-gasifying around 600 million cubic feet per day (mmcfd) of LNG.

Both the FSRUs have the capacity to re-gasify around 500 mmcfd of LNG each.

Bangladesh imports around five to six cargoes from term suppliers Qatargas and OTI every month to meet mounting natural gas demand.