Bangladesh Buys More Expensive LNG Cargoes Amid Ongoing Gas Shortage

The Bangladesh government has approved the purchase of two more liquefied natural gas (LNG) cargoes from Singapore to help alleviate the ongoing gas shortage in the country. The approval was given at the 38th meeting of the Cabinet Committee on Government Purchase, which took place on August 17.

The two cargoes will be purchased from BP Singapore Pte Ltd at a total cost of around Tk1,850.77 crore (approximately $212 million USD). The first cargo is scheduled to arrive between August 23-24 and the second between September 4-5.

According to an Energy Division report, Bangladesh is purchasing the LNG at prices higher than those prevailing in the international market. The average Japan Korea Marker (JKM) price for LNG scheduled for delivery in August was $16.808 per million British thermal units (MMBtu), but the approved prices are more than $4.9 per MMBtu higher.