Bangladesh Buys LNG at Premium Prices Amid Gas Shortage

The Bangladeshi government has approved two more liquefied natural gas (LNG) purchases from Singapore-based BP Singapore Pte Ltd to address the ongoing gas shortage in the country.

The two cargoes are scheduled to arrive between August 23-24 and September 4-5, respectively. The total cost for the two purchases is approximately Tk1,850.77 crore (around $218 million USD).

The prices approved for the LNG cargoes are higher than those prevailing in the international market, with an average Japan Korea Marker (JKM) price of $16.808 per million British thermal units (MMBtu) for August deliveries.

An Energy Division report notes that the prices for the two cargoes are more than $4.9 per MMBtu higher than the reported August JKM average.