Japanese energy company JERA offered the lowest price for a liquefied natural gas (LNG) cargo in the latest Bangladesh spot tender. The offer was made at $16.50/MMBtu for delivery to the Moheshkhali floating storage and regasification unit on March 11-12. According to an official from Petrobangla, the national oil company that handles LNG trading for Bangladesh, JERA will supply about 3.36 million MMBtu.
Other suppliers submit higher bids
Six other LNG suppliers, including Vitol Asia, Gunvor Singapore, Excelerate Energy and TotalEnergies, also submitted bids in the tender launched a week ago. The highest bid was approximately $21/MMBtu.
The final decision is awaited
Bangladesh’s cabinet committee on government procurement is expected to approve the award of the LNG supply contract to JERA at a meeting scheduled later this week, the official added. State-owned Rupantarita Prakritik Gas Company Ltd, a wholly-owned subsidiary of Petrobangla, will issue another tender by next week to import a similar-sized spot cargo of LNG in late March.
LNG market expected to continue to decline
Bangladesh expects to receive its first 2023 spot LNG cargo on Feb. 21-22 from TotalEnergies, which was awarded at $19.78/MMBtu in a tender. Cash prices are trending lower due to healthy inventories and tepid winter demand in most regions. According to S&P Global data, JKM for March delivery was valued at $15.40/MMBtu by Platts on February 13, the lowest since August 20, 2021.
JERA offered a record price for an LNG cargo in the latest Bangladesh spot tender. The Japanese energy company will supply about 3.36 million MMBtu for delivery to the Moheshkhali floating storage and regasification unit on March 11-12. The final decision on the award of the LNG supply contract to JERA is expected this week. Bangladesh is expected to continue importing LNG from the spot market in the coming months, with spot prices trending downward due to healthy inventories and tepid winter demand in most regions.
