Govt to buy 18 LNG cargoes from France

Bangladesh will import 18 LNG cargoes from France-based TotalEnergies over the next nine months to meet urgent gas demand amid supply disruptions and heightened geopolitical instability.

Under a direct purchase arrangement for international procurement, the government will import two liquefied natural gas (LNG) cargoes a month from October this year to June next year.

The Cabinet Committee on Government Purchase approved the procurement proposal at a meeting chaired by Finance Minister Amir Khosru Mahmud Chowdhury on Wednesday.

Each cargo will be priced at the Japan Korea Marker (JKM) plus $0.06 per million British thermal units (MMBtu), according to the government.

The government may purchase additional cargoes from TotalEnergies if required, subject to mutual agreement between the two sides.

The price is slightly lower than the rate agreed with US-based Gunvor for 14 LNG cargoes to be imported between 2026 and 2028. Under that arrangement, the price is JKM plus $0.0875 per MMBtu, according to the Energy Division.

The TotalEnergies procurement received policy approval from the Cabinet Committee on Economic Affairs as the government seeks to address urgent gas demand amid heightened geopolitical instability arising from the conflict in the Middle East, the Ministry of Finance’s Public Relations Department said.

Bangladesh has long-term LNG supply agreements with Qatar and Oman, but supplies under those contracts have been disrupted amid the Iran conflict, contributing to the country’s ongoing gas shortage.

Against this backdrop, the government has been turning to the spot market, where LNG has been available at relatively high prices, while seeking alternative sources to strengthen supplies.

As part of the effort to secure longer-term supplies, the government has also approved a proposal to sign a long-term LNG import agreement with US-based Gunvor through 2038.

Under the approved Gunvor arrangement, Bangladesh will import 14 LNG cargoes between 2026 and 2028 at JKM plus $0.0875 per MMBtu.