Govt okays two LNG cargoes at record prices to meet growing demand

The government is buying two cargoes of Liquefied Natural Gas (LNG) from South Korea and the United Kingdom at record-high prices to meet rising domestic gas demand, with the price exceeding $24 per million British thermal units (MMBtu).

The Cabinet Committee on government purchase, chaired by Finance Minister Amir Khosru Mahmud Chowdhury, today (24 August) approved the proposals to import the two cargoes through the international quotation process.

One of the cargoes will be imported from South Korean trading and energy company Posco International Corporation for delivery on 13-14 September at $24.625 per MMBtu.

The committee also approved the import of another cargo from Total Energies Gas and Power Ltd of the UK for delivery on 23-24 September at $24.25 per MMBtu.

Earlier, at its meeting on 19 August, the purchase committee approved a proposal to buy LNG from Aramco Trading Singapore Pte Ltd at $23.93 per MMBtu.

The latest purchases come as the government steps up LNG imports to meet the country's growing gas demand.

The Ministry of Power, Energy and Mineral Resources placed the proposal before the committee under Rule 105(3)(a) of the Public Procurement Rules 2025 through the Request for Quotation (International) process.

The government is also set to import 115,000 tonnes of fertiliser from Canada, Russia, and Saudi Arabia, aiming to build up stocks amid concerns over the supply of the vital crop nutrient due to the US-Israel war on Iran and China's export ban.

The committee approved the proposal following consideration of the procurement process and the recommended bidders. The latest approval comes as Bangladesh continues to rely heavily on imported LNG to meet its growing demand for natural gas, particularly for power generation and industrial consumption.

Apart from the LNG purchase, the purchase committee also approved proposals to import 365,000 tonnes of urea and non-urea fertiliser amid allegations that fertiliser is being sold to farmers at inflated prices in different parts of the country.

The imports comprise 70,000 tonnes of urea, 60,000 tonnes of triple super phosphate (TSP), 120,000 tonnes of Diammonium Phosphate (DAP) and 115,000 tonnes of Muriate of Potash (MOP).

According to the Finance Ministry, the committee approved the import of 40,000 tonnes of urea from Saudi Arabia-based SABIV Agri-Nutrients Company while 30,000 tonnes from Bangladesh's Karnaphuli Fertilizer Company (KAFCO) Ltd.

The committee also approved the import of 60,000 tonnes of TSP from Morocco's OCP Nutricrops under the government-to-government (G2G) arrangement.

Under the G2G arrangement, the committee approved the purchase of 80,000 tonnes of MOP from the Canadian Commercial Corporation and 35,000 tonnes from Russia's Foreign Economic Corporation.

The committee also approved proposals to import 80,000 tonnes of DAP from Morocco and 40,000 tonnes from Saudi Arabia.