Country's overall LNG (liquefied natural gas) re-gasification reached around 837 million cubic feet per day (mmcfd) on Monday, the highest-ever so far, as the government is importing a high volume of fuel to meet the mounting domestic demand.
Two operational FSRUs (floating, storage, re-gasification units) are now utilizing 83.7 per cent of their total capacity to re-gasify around 1.0 billion cubic feet per day (bcfd), according to Petrobangla statistics.
Country's overall natural gas output also reached the highest-ever level of around 3,304 mmcfd, riding on an increased volume of LNG imports.
Local gas fields, including those operated by international oil companies (IOCs), supplied around 2,467 mmcfd of gas on Monday from a total of 43 operational gas fields.
Petrobangla started re-gasifying LNG in August 2018 to the tune of around 100 mmcfd through the first FSRU owned by US's Excelerate Energy.
State-run Petrobangla could re-gasify maximum LNG on Monday as it bought two LNG cargoes from the spot market this month apart from five to six regular cargoes from term LNG suppliers.
LNG re-gasification might be stable at this level this month and increase further next month as Petrobangla has planned to purchase three LNG cargoes from the spot market for April.
Petrobangla's subsidiary state-owned Rupantarita Prakritik Gas Company Ltd (RPGCL) had already floated tenders for all the three cargoes and received lower price quotes for the first two cargoes, said a senior Petrobangla official.
Vitol Asia, Petronas and AOT Trading submitted bids for the two LNG cargoes for April delivery.
Two suppliers submitted bids for LNG delivery in the first week of April while three bidders quoted prices for the second week of April deliveries.
Tender for LNG delivery in the third week of April has not yet opened, said the official.
The lowest bid for both the tenders was around US$8 per mmBtu (million British thermal unit) to supply each cargo having the quantity of 138,000 cubic metres of LNG from the spot market.
An evaluation committee would review the offers to select the best bidders.
Singapore-based Vitol Asia Pte Ltd won the previous two bids to supply LNG from the spot market for March deliveries after two months of hiccup.
Petrobangla had been purchasing LNG cargoes at US$9.3123 per mmBtu for the delivery during the first week of March and at $9.36 per mmBtu for the delivery during the second week of March.
RPGCL had been floating tenders since August 2020 to purchase LNG from the spot market under a government plan to meet around one-fourth of the country's total LNG requirements from the spot market.
In the past tenders, RPGCL could bag only tender in September 2020 within the price of its expectation.
The 14 suppliers allowed to bid for Bangladesh's spot tenders are: Mitsui, Marubeni, Osaka Gas, Jera, Cheniere Marketing International, Vitol Asia, Trafigura, Diamond Gas International, Excelerate Energy, Woodside Petroleum, Eni, AOT Trading, Petronas, and the joint venture of Summit Corp and Summit Oil & Shipping of Bangladesh.
Bangladesh initiated to import LNG from the spot market two years after the country's first LNG cargo imports in August 2018.
Currently, the country's LNG import price under long-term contracts with Qatargas and Oman Trading International, ranges around $8.50 per mmBtu, said the Petrobangla official.
Bangladesh has a 15-year contract with Qatargas to import around 2.5 million mt/year of LNG, at a 12.65 per cent slope of the three-month average Brent price plus a 50-cent constant. Its contract with OTI is for 10 years at an 11.9 per cent Brent slope plus 40 cents.
It has two operational floating, storage re-gasification units with a capacity of around 500 million cubic feet per day (mmcfd) equivalent in LNG.
Excelerate Energy started supplying from its FSRU in August 2018 while Summit in April 2019.
Azizjst@yahoo.com