Bangladesh seeks LNG cargo for December delivery, sources say

Rupantarita Prakritik Gas Company had earlier cancelled two tenders for November and early December delivery

  
Image used for illustrative purpose. A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan, ON November 13, 2017.

Image used for illustrative purpose. A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan, ON November 13, 2017.

REUTERS/Issei Kato

DHAKA - Bangladesh's state-owned Rupantarita Prakritik Gas Company is seeking one liquefied natural gas (LNG) cargo for delivery in December through a tender, two officials familiar with the matter said on Monday.

It has sought a cargo of 138,000 cubic metres for delivery over Dec. 22-26 in a tender closing on Nov. 25 that was reissued after it was cancelled because of high offered prices.

Rupantarita Prakritik Gas Company, which is in charge of Bangladesh's LNG imports, had earlier cancelled two tenders for November and early December delivery, again citing high prices. 

Bangladesh has two long-term contracts with Qatargas and Oman Trading International.

With domestic gas production dwindling, the nation of 160 million people is set to be a significant player in the global LNG market, alongside Pakistan and India.

It bought Bangladesh's first ever spot LNG cargo from Vitol at $3.8321 per mmBtu for delivery over late September to early October. But since then its LNG imports plan from the spot market has faced a setback amid a surge in prices.

Asian spot prices for LNG slipped this week as supply from Malaysia returned after a brief hiatus, although a colder-than-expected winter in Northeast Asia supported prices, that jumped more than 40% this month.

The average LNG price for January delivery into Northeast Asia LNG-AS was estimated at about $6.40 per million British thermal units (mmBtu), while the price for cargoes delivered in December was estimated to be about $6.70 per mmBtu, industry sources said.

Bangladesh currently has two floating storage and regasification units (FSRUs) with a total regasification capacity of 1 billion cubic feet per day - equal to about 7.5 million tonnes a year.

(Reporting by Ruma Paul; editing by David Evans) ((Ruma.Paul@thomsonreuters.com; +880 2 58315303; Reuters Messaging: ruma.paul.thomsonreuters.com@reuters.net))

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