Deal with Indonesia on LNG import today

Bangladesh will sign a "Term Sheet Agreement" with Pertamina, Indonesian state-owned oil and gas company, for importing one million mt/year of lean LNG by December 2018.
"We are going to sign the "Term sheet" agreement Today (Sunday) to import one million tonnes lean LNG for the next 10-years from the Indonesian company," Rupantarita Prakritik Gas Company Ltd (RPGCL) Managing Director Mohammad Quamruzzaman told the Daily Observer on Saturday. RPGCL, a subsidiary of Petrobangla is in charge of the country's LNG purchases.
Following a meeting between Prime Minister Sheikh Hasina and visiting Indonesian President Joko Widodo today at Prime Minister's Office, State Minister for Power, Energy and Mineral Resources Nasrul Hamid and Indonesia's Energy and Mineral Resources Minister Ignasius Jonan will sign the Term Sheet Agreement in presence of the two leaders.
On September 2017, state minister Nasrul Hamid inked a memorandum of understanding (MoU) with Indonesia's minister Ignasius Jonan in Jakarta for import of LNG, he added. Bangladesh is choosing a formula of per unit LNG which has been set at around 12.65% of the three-month average Brent crude prices plus $0.50/MMBtu, according to the Energy Division. Presently, the price stands around $7.50/Mcf. This price is almost three times the weighted average price of natural gas price in Bangladesh (which is at $2.19/Mcf).
It was said that the sulfur contain in imported LNG from Indonesia is high, Petrobangla said the imported LNG is to be blended with sulfur-free, sweet gas produced domestically. The sulfur content in the imported LNG should be low, it claimed.
To meeting the growing demand for energy, the government continues to seek out supplies RPGCL short-list around a dozen of LNG suppliers from the expressions of interests submitted by 39 global firms in 2017. Bangladesh needs to import of around 30 million mt/year of LNG to meet the demand from various sectors including industries, power plants and fertilizer plants by 2041 as domestic gas reserves are depleting fast, Petrobangla's annual report said. In a meeting with the Indonesian ambassador in Dhaka Iwan Wiranata-Atmadja on Sunday, State Minister Nasrul Hamid sought more cooperation of Indonesian investors in energy sector in upcoming days as Bangladesh is exploring low cost fuel options to meet its energy demand.
"Bangladesh encourages G to G options to do business with any foreign country," State Minister told the Indonesian Ambassador.
During the meeting the Iwan Wiranata-Atmadja told the State minister that both the public and private sector of Indonesia interested to develop a FSRU and LNG business in Bangladesh. Recently, Petrobangla inked a final deal with Qatar to import LNG. It also signed MoU with Oman and Switzerland-based AOT Energy in 2017. Bangladesh is seeking to import spot LNG from suppliers taking advantage of the downtrend in LNG pricing in global market.