Government to buy two more LNG cargoes at ‘low prices’

The government is going to buy two more LNG cargoes at ‘low prices’ from the spot market on an emergency basis to deal with the energy crisis amid the ongoing war situation in the Middle East.

The Cabinet Committee on Government Procurement approved the LNG purchase proposal on Wednesday (March 25).

This information was given in a press release by the Finance Ministry.

The Cabinet Committee on Government Procurement also approved the purchase of three LNG cargoes in the last meeting before Eid-ul-Fitr. It was decided to buy two of those cargoes from a South Korean company and one from a UK company. The two more cargoes being bought this time are being imported from a UK company.

After the meeting, Energy Secretary Mohammad Saiful Islam told reporters, "This LNG is being purchased from the spot market at a low price."

According to the Finance Ministry's notification, the cost of purchasing one cargo of LNG from the UK approved in the last meeting is about 740 million taka less this time. When compared to the cost of purchasing from a Korean company, it is about 400 million taka less. The cost of purchasing one cargo of LNG from a UK company was estimated at 907 million 84 lakh taka. And the cost of purchasing from a Korean company was 873 million 35 lakh taka.

This time, each cargo of LNG is being purchased from a UK company at 833 million 39 lakh taka.

It is worth noting that Prime Minister Tarique Rahman had ordered the import of LNG from the spot market on an emergency basis due to the war situation in the Middle East.