[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]DHAKA: Bangladesh will import four spot LNG cargoes for delivery in June to meet increased power demand during the peak summer season, according to the chairman of Petrobangla.
“We purchased eight spot cargoes, and we’re in the process of purchasing four cargoes in June,” said Petrobangla chairman Zanendra Nath Sarker on Monday.
Another official said that Petrobangla, which is in charge of LNG imports in Bangladesh, will receive five to six cargoes in June under existing long-term supply agreements.
Since February, Petrobangla has been buying two cargoes of spot LNG per month, reversing a government decision last year to halt spot purchases after prices spiked following the Russia-Ukraine war.
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However, due to high stockpiles and weak North Asian demand, Asia LNG prices have fallen 83% from record highs of $12 per million British thermal units on Friday.
Because of the price drop, Bangladesh was able to purchase three spot cargoes in May to meet rising summer demand.
“Prices are easing, which is a good thing. “We are doing everything we can to ensure energy supplies to keep the economy running,” Sarker said.
“We’re also close to finalising other long-term deals with Oman, and discussions with Qatar are ongoing,” he said, without going into specifics because the deals were still being negotiated.
Bangladesh relies on imported LNG for nearly three-quarters of its power generation, owing to depleting domestic gas reserves and a scarcity of coal-fired capacity.
However, due to Russia’s war in Ukraine, the South Asian nation was forced to cut LNG imports and ration gas supplies last year, causing power output to fall despite rising demand.
Despite government efforts to ration petrol supplies, this resulted in frequent power outages in many areas of the country, and a fuel shortage that forced millions of citizens into hours of darkness every week during the second half of last year.
According to data firm Kpler, Bangladesh’s LNG imports in 2022 will be 13% lower than the previous year, at 4.4 million tonnes.
So far this year, the country has imported 1.45 million tonnes of LNG.[/vc_column_text][/vc_column][/vc_row]
