Bangladesh Floats Tenders for Spot LNG Cargoes Amid Gas Demand Shortfall

Bangladesh's state-run energy company Petrobangla has reissued one tender and floated three fresh tenders to purchase four spot LNG cargoes for delivery in September and October. The country's two floating storage and regasification units (FSRUs) are now operational, allowing for increased imports.

The volume of each spot LNG cargo is about 3.36 million British thermal units (MMBtu). A tender for a cargo to be delivered during the September 8-9 window was reissued after the previous tender was cancelled due to higher-than-expected prices from suppliers. Fresh tenders have been floated for delivery during September 25-26, October 1-2, and October 5-6 windows.

Bangladesh recently awarded tenders for two spot LNG cargoes to Posco International Corporation at $24.625 per MMBtu and TotalEnergies Gas Power Limited at $24.25 per MMBtu. The country has so far purchased 47 LNG cargoes from the spot market this year, with 45 of them acquired after the Middle East war.

Petrobangla is currently struggling to meet its gas demand amid elevated LNG prices and restricted deliveries from contracted long-term suppliers. The state-run company has been rationing gas supplies to industries and power plants due to a shortfall of nearly 1,700 million cubic feet per day (mmcfd). National gas demand is estimated at about 4,000 mmcfd, while overall natural gas supply stood at approximately 2,307 mmcfd on August 30.