Bangladesh Secures Massive LNG Price Cut from Gunvor USA
The government of Bangladesh has secured a significant reduction in the price premium for liquefied natural gas (LNG) imports from US-based Gunvor USA LLC. The Cabinet Committee on Government Purchase approved the revised proposal to import 117 LNG cargoes from Gunvor between 2026 and 2038 under a long-term government-to-government agreement.
The committee secured a 90% reduction in the price premium for 14 LNG cargoes, bringing it down from $0.875 to $0.0875 per million British thermal units (MMBtu). The reduced premium will lower the cost of importing these cargoes significantly.
Gunvor will supply 10 cargoes annually from 2029 to 2038 at a price set at 121% of the Henry Hub price plus $5.20 per MMBtu. The Henry Hub price today was $2.81/MMBtu, which means the effective price for these cargoes would be around $8.60/MMBtu.