Govt plans 117 LNG cargoes from US firm by 2038

The Cabinet Committee on Government Purchase (CCGP) on Wednesday recommended a long-term government-to-government (G2G) arrangement with Gunvor USA LLC to purchase 117 LNG cargoes between 2026 and 2038 as Bangladesh seeks to secure supplies amid persistent pressure on domestic gas availability.
Under the proposed arrangement, five cargoes will be purchased in 2026, six in 2027 and three in 2028 at a price of JKM plus US$0.0875 per MMBtu.
Another three cargoes will be purchased in 2028, followed by 10 cargoes annually from 2029 to 2038, under a pricing formula of 121 per cent of HH plus US$5.20 per MMBtu.
In a separate decision, the committee recommended purchasing eight LNG cargoes through direct international procurement to meet urgent gas demand amid the volatile geopolitical situation arising from the Iran and US-Israel conflict.
Of the eight cargoes, four will be purchased from two international suppliers.
The committee recommended procuring two cargoes from Blackcube International Ltd of the UK at US$15.50 per MMBtu, and another two from Maxwell International SPC of Oman at JKM plus US$0.54 per MMBtu.
The proposals were placed by the Energy and Mineral Resources Division.
The CCGP also recommended purchasing two LNG cargoes from Zhenyu Shipping Co Limited of Hong Kong through the direct procurement process in 2026 at US$14.95 per MMBtu.
The procurement decisions come as Bangladesh faces persistent pressure on domestic gas supplies and growing dependence on imported LNG to meet demand from power plants, industries and other consumers.
The government has been increasing spot and direct LNG purchases alongside long-term arrangements to ensure uninterrupted gas supplies amid heightened uncertainty in the international energy market.�"UNB