Govt to buy 2 LNG cargoes at higher rates

The government has given approval the purchase of two LNG cargoes at prices $0.32 to $0.70 per million British thermal units higher than rates approved just five days ago.

The decision came at Monday’s meeting of the Cabinet Committee on Government Purchase as Bangladesh moves to address the ongoing energy crisis.

One cargo will cost $24.625 per mmBtu, while the other is priced at $24.25.

At the Aug 19 meeting, the government approved one LNG cargo at $23.93 per mmBtu.

Depending on vessel size, cargoes arriving in Bangladesh typically contain 3.2 million to 3.36 million mmBtu of LNG. At the new rates, one cargo could cost up to $82.74 million, or Tk 1.014 billion at an exchange rate of Tk 122.50 per dollar.

That would mean an additional Tk 131.7 million to Tk 288.1 million per cargo compared with the rate approved five days earlier. LNG costs have surged amid the West Asian conflict, rising from around Tk 7 billion per cargo to more than Tk 9.43 billion in July.

Meanwhile, Excelerate Energy’s Moheshkhali terminal resumed gas supplies to the national grid on Saturday after a three-day halt. A new LNG cargo also arrived at the terminal that day.