Bangladesh’s Energy Ministry is to import LNG using the spot market to benefit from the current low gas prices.
Several committees have been formed to look into importing spot LNG from the second half of this year, the state-run Rupantarita Prakritik Gas Company (RPGCL) managing director, Md Kamruzzaman, told local media recently.
The JKM index has plunged to historic lows, as the ongoing global shutdown to combat the coronavirus pandemic has reduced world LNG demand.
RPGCL, a subsidiary of state-run Petrobangla, signed deals with suppliers during the past month, after competitive bidding round was held, aimed at sourcing around a quarter of the country's LNG requirements from the spot market.
The company has signed Master Sale and Purchase Agreement (MSPA) with 14 global suppliers separately to import the LNG, sources said.
Bangladesh has been importing LNG under long-term deals with Qatar's Qatargas, and Oman's Oman Trading International (OTI), since starting regular LNG imports in August, 2018.
Initially, RPGCL will specify the quantity of spot LNG for the LNG terminals with the suppliers who will also supply gas to the country's receiving terminals from time to time, based on demand.
Under the terms of the MSPA, the gas should be supplied on a delivered ex-ship basis in vessel sizes ranging from 125,000 to 220,000 cu m capacity.
Two FSRUs, owned by Excelerate Energy and the domestic Summit Group, were re-gasifying around 600 mill cu ft per day of LNG, as at the end of April.