Bangladesh Halts LNG Deal with Gunvor Over Steep Pricing
Bangladesh has put its proposed long-term LNG supply deal with US-based commodity trader Gunvor USA LLC on hold due to the company's high price quotation.
The Cabinet Committee on Economic Affairs (CCEA) approved a proposal for a 13-year LNG supply agreement with Gunvor under a government-to-government arrangement and dual-benchmark pricing mechanism in July, but it did not receive final approval from the Cabinet Committee on Government Purchase (CCGP) due to Gunvor's high price quotation.
Petrobangla settled the price for LNG deliveries during 2026-28 at JKM plus $0.875 per MMBtu after negotiations with Gunvor following CCEA's initial approval, but officials said this was higher than Gunvor's initial proposal of JKM plus $0.10 per MMBtu.
The deal proposed by Gunvor includes supplying five LNG cargoes in 2026, six in 2027, and three in 2028, with deliveries from 2029 to 2038 linked to the Henry Hub index at 121% of Henry Hub plus $5.20 per MMBtu.