LNG purchase gets nod, fuel deals sent for price negotiation

The government has recommended approval for a proposal to purchase liquefied natural gas (LNG) directly from TotalEnergies to meet domestic energy demand, while five proposals to procure diesel, jet fuel and furnace oil have been sent back for further price negotiations.

The decision was taken at a meeting of the Cabinet Committee on Government Purchase on Wednesday, September 9, chaired by Finance Minister Amir Khosru Mahmud Chowdhury at the Secretariat.

Under the LNG proposal, the price will be linked to the international Japan Korea Marker (JKM) benchmark, with a premium of $0.06 per unit.

Meanwhile, the government floated international tenders for five packages to procure petroleum products between September and December 2026. The combined estimated value of the packages is around Tk 11,914 crore.

The committee did not give final approval to any of the five packages. Instead, the recommended suppliers were asked to negotiate the proposed premiums and benchmark prices and submit revised offers at the next committee meeting.

The packages are:

PG-01: 220,000�"250,000 tonnes of diesel and 50,000 tonnes of Jet A-1, estimated at Tk 4,803.02 crore. Trafigura Pte Ltd was recommended as the supplier.

PG-02: 200,000�"230,000 tonnes of diesel and 40,000 tonnes of Jet A-1, estimated at Tk 4,326.89 crore. Vitol Asia Pte Ltd was recommended.

PG-03: 25,000�"50,000 tonnes of diesel, estimated at Tk 792.79 crore. Unipec Singapore Pte Ltd was recommended.

PG-04: 50,000�"75,000 tonnes of diesel, estimated at Tk 1,189.87 crore. Vitol Asia Pte Ltd was recommended.

PG-05: 75,000�"100,000 tonnes of furnace oil, estimated at Tk 801.47 crore. Trafigura Pte Ltd was recommended.

The government will review the revised offers after negotiations before making final purchasing decisions.

sks