Bangladesh eyes more spot-LNG over long-term supplies

Negotiations between Bangladesh and Qatar on the long-term LNG supply contract has entered final stages with the importer eyeing lower volumes in favor of spot supplies.

Currently, Bangladesh would purchase less than 4 million tons of LNG per year, Reuters reports the manager of Petrobangla’s LNG unit, Kazi Mohammad Anwarul Azim as saying.

Currently, the state-owned company is close to securing a deal for about 2.5 million tons of LNG with deliveries starting in early 2018.

According to Azim, the country intends to mix the long-term and spot-LNG supplies in order to ensure supply security and price competitiveness.

Analysts note that the looming supply glut might have prompted Bangladesh to dip into the spot market as Asian spot-LNG prices are expected to remain low.

Petrobangla has signed terminal use agreement with Excelerate Energy and Summit LNG to install FSRU based LNG terminal in the Moheshkhali Region, with a capacity to handle 3.75 mtpa of LNG each.

The terminal being developed by Excelerate Energy is scheduled to be commissioned by April 2018 and the Summit terminal by October 2018.

LNG World News Staff