LNG supply period extended for 7 companies

South Korean company Posco International to supply LNG cargo

UNB

December 26, 2024, 7:30 p.m.

Last modification: December 26, 2024, 7:40 p.m.

Representational image. Photo: Reuters

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Representational image. Photo: Reuters

Highlights

• ACCEA approves extension of LNG supply contracts for seven companies
• Petrobangla to use LSP software for LNG imports until March 2025 to meet urgent gas needs
• ACCGP approves Petrobangla’s proposal to import LNG cargo from Posco International Corporation for Tk 692.99 crore

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The Advisory Committee on Economic Affairs (ACCEA) approved the extension of LNG (liquefied natural gas) supply contracts for seven companies.

These companies will continue to supply LNG from the international spot market.

Petrobangla, the state-owned company, imports LNG from these companies under the Master Sales and Purchase Agreement (MSPA).

As part of the proposal, ACCEA also approved the use of LSP software for LNG imports until March 2025.

Financial advisor Salehuddin Ahmed chaired the meeting.

According to sources met, Petrobangla imports LNG from 23 listed companies which have signed MSPAs and operate on the international spot market.

LNG is imported through international tenders as per Rule 85 of the “Public Procurement Rules (PPR)-2008”.

Of these companies, the contract term with eight companies ended on December 17, while the contract term with six companies will end on February 2, 2025. Meanwhile, MSPA agreements with 27 new companies are in progress and will take approximately 45 more days to be concluded. finalized.

In light of this, ACCEA has approved in principle the extension of contract periods and the use of LSP software with 16 of the 23 existing companies that have signed MSPAs.

The measure aims to meet the urgent gas needs of the country’s power, industry and fertilizer sectors until March 2025.

Additionally, the Advisory Committee on Government Procurement (ACCGP) approved a proposal by Petrobangla to import a cargo of LNG from the international spot market.

South Korea’s Posco International Corporation will supply the LNG cargo at a cost of Tk 692.99 crore, with a price of $14.69 per MMBtu.