The government of Bangladesh has resumed importing LNG (liquefied natural gas) from the international spot market after a pause of seven months.
According to official sources, the Cabinet Committee on Government Purchase (CCGP) approved a proposal of the state-owned Petrobangla to import one cargo of LNG, reports UNB.
Agriculture Minister Abdur Razzaque presided over the meeting held virtually on Wednesday.
The government had earlier suspended the import of LNG from the international spot market in July last year (2022) following the excessive hike in prices of the gas against the backdrop of the Russia-Ukraine war.
Before the war, Bangladesh was purchasing LNG from the spot market between $6-10 per MMBtu. After the start of the war in February this year, the price crossed $37 per MMBtu.
Official sources said the Energy and Mineral Resources Division placed the proposal on behalf of its subordinate body Petrobangla to import the LNG.
"The price of LNG was quoted at $19.78 per MMBTu (Million British Thermal unit) and the cost of the total consignment was set at Tk 8.50 billion ", said a source at the Energy and Mineral Resources Division.
He noted that the government has planned to import a total of 12 LNG cargos in 2023 to meet the growing demand for natural gas.
As part of the austerity measures, the government last year suspended power generation from diesel-fired power plants and also import of the LNG as the prices of the products went too high.
As a result, the government was incurring a huge financial loss in importing LNG at higher prices and selling it to the local market at lower prices.
But recently, the government raised the gas prices at retail level for power plants, industries, and commercial users to reduce subsidies in the sector.