Govt to buy 5 LNG cargoes from S'pore, 1 from Qatar   

The government has turned down a proposal of the Energy division seeking approval to purchase liquefied natural gas (LNG) directly from Japan’s JERA Global Markets Pte Ltd (JERAGM), pending legal vetting by the Legislative and Parliamentary Affairs Division.

The Cabinet Committee on Government Purchase (CCGP) decided that the proposal will be placed before it again after obtaining  vetting from the Legislative and Parliamentary Affairs Division. No final approvalfor the proposed LNG purchase or signing of the agreements was granted at the 35th meeting of the CCGP on Saturday. Finance Minister Amir Khosru Mahmud Chowdhury presided over the meeting. 

The Energy Division’s proposal sought approval in principle to procure LNG from JERAGM through the direct procurement method under Section 68 of the Public Procurement Act, 2006, and Rule 99(2) of the Public Procurement Rules, 2025. 

It also sought approval to sign the finalised formats of the short-term LNG Sale and Purchase Agreement (SPA) and the term sheet between Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) and JERAGM.

However, the committee approved a proposal to purchase five LNG cargoes from BP Singapore at a price of $0.17 per million British thermal units (MMBtu) below the Japan-Korea Marker (JKM) benchmark.

The committee also approved a proposal to purchase an additional LNG cargo from Qatar Energy Trading under the existing long-term contract. The price was set at $0.10 per MMBtu below the JKM benchmark.

The first proposal sought approval to buy five LNG cargoes from BP Singapore Pte Limited under the direct procurement method, in line with Section 68 of the Public Procurement Act, 2006, and Rule 99(2) of the Public Procurement Rules, 2025. It also sought approval to buy additional cargoes if needed, with the consent of both parties.

The second proposal sought approval to buy one additional LNG cargo from Qatar Energy Trading LLC on a government-to-government (G2G) basis under the existing long-term contract. The cargo is for December 20, 2026 and would be bought at a price different from the one in the contract.

The proposed price is JKM minus USD 0.10 per MMBtu, and Qatar Energy Trading LLC was named as the recommended bidder.

According to the Cabinet Division, the committee decided to place the proposal of JERA Global Markets Pte Ltd (JERAGM) at its next meeting after obtaining vetting from the Legislative and Parliamentary Affairs Division.

Under the proposal, the division sought approval to negotiate directly with the company and sign a short-term LNG sale and purchase agreement (SPA) and a term sheet, in accordance with Section 68 of the Public Procurement Act, 2006, and Rule 99(2) of the Public Procurement Rules, 2025.