Singapore: Md Kamruzzaman, the managing director of state-run Rupantarita Prakritik Gas Company Limited, has announced that Bangladesh is expecting to make its first import of LNG from the spot market sometime between Sept. 15-20. The vessel responsible for carrying the shipment is set to transport 138,000 cu m of lean LNG.

Previously, RPGCL had selected 14 global companies to provide these spot supplies. As this marks Bangladesh's first LNG import from the spot market, several committees were put in place by the government to ensure a seamless transition, considering their current imports are connected to fixed term agreements.

RPGCL, a state-owned entity responsible for overseeing LNG imports, has signed a master sale and purchase agreement with 14 companies to capitalize on low spot prices. The list of companies includes internationally recognized organizations such as Japan's Mitsui, Marubeni Corp., Osaka Gas, and Jera. As well as, Singapore-based affiliates including Cheniere Marketing International, Vitol Asia, Trafigura, and Diamond Gas International. Other companies on the list are Excelerate Energy, Woodside Petroleum, Eni, AOT Trading from Switzerland, Petronas, and the joint venture of Summit Corp. and Summit Oil & Shipping from Bangladesh.

According to Kamruzzaman, buying LNG from the spot market will not only diversify Bangladesh's LNG sources, but also improve the country's energy security. The country began importing LNG on September 9th, 2018, and currently receives lean LNG from Qatargas and Oman Trading International through long-term agreements. Each month, 5 to 6 cargoes of LNG are delivered to Bangladesh under these agreements.

The spot market LNG providers will supply the requested quantity of LNG based on demand. RPGCL has specified the desired amount of spot LNG which will be blended with the country's high-quality natural gas, which is free of sulfur and is a sweet gas. This blended gas will then be supplied to the consumers as per their requirements.

The Bangladesh government-owned company, RPGCL, plans to purchase spot LNG on an ex-ship basis with a gross heating value in the range of 1,025 to 1,100 Btu per standard cubic feet. The decision will be based on various factors such as market prices, terminal availability, downstream demand, and increased regasification capacity.

Presently, Bangladesh possesses two FSRUs, managed by the US-based Excelerate Energy and local Summit Group. These FSRUs can regasify around 600 MMcf/d of LNG, with each having a capacity of regasifying 500 MMcf/d.