Bangladesh Approves $2.35 Billion LNG Purchase Amid Domestic Production Decline

The Cabinet Committee on Government Purchase (CCGP) has approved the purchase of two additional cargoes of liquefied natural gas (LNG) from BP Singapore Pte Ltd at a combined cost of over Tk 1,850 crore.

The decision was made at the CCGP meeting held at Bangladesh Secretariat with Finance Minister Amir Khosru Mahmud Chowdhury in the chair. The proposal for the purchase was placed by the Energy and Mineral Resources Division under the international Request for Quotation (RFQ) process, as per Rule 105(3)(a) of the Public Procurement Rules (PPR), 2025.

The two cargoes will be delivered on August 23-24 and September 4-5 respectively. The cost of each cargo is calculated based on the Japan Korea Marker (JKM) price, with one cargo costing Tk 927.50 crore and another costing Tk 923.26 crore, including advance income tax.

The government is also considering the purchase of two LNG cargoes from Blackcube International Ltd of the UK at a negotiated price of $15.50 per MMBtu for delivery on August 17-18 and August 22-23. This option could save around $37.05 million compared to purchasing spot LNG at JKM prices.