The government has approved the purchase of 123 LNG cargoes from four companies, including 117 cargoes from a US company over 12 years, to meet the country's urgent gas demand.
The purchase proposals were approved at a meeting of the Cabinet Committee on Government Purchase, chaired by Finance Minister Amir Khosru Mahmud Chowdhury, on Wednesday (12 August).
The Energy and Mineral Resources Division said the decision was taken amid growing concerns over energy security due to the volatile geopolitical situation and the ongoing conflict involving the United States, Israel and Iran.
Under a government-to-government (G2G) agreement, Bangladesh will purchase 117 LNG cargoes from US-based Gunvor USA LLC between 2026 and 2038. The remaining six cargoes will be purchased from three other companies through the direct procurement method.
The committee approved the purchase of two LNG cargoes from UK-based Blackcube International Ltd at $15.50 per million British thermal units (MMBtu).
It also approved the purchase of two cargoes from Oman's Maxwell International SPC at a price linked to the Japan-Korea Marker (JKM) index, with an additional $0.54 per MMBtu.
Another two LNG cargoes will be purchased from Hong Kong-based Zhenyu Shipping Company Ltd in 2026 at $14.95 per MMBtu.
117 cargoes from US company
Under the G2G agreement with Gunvor USA LLC, Bangladesh will purchase 117 LNG cargoes from 2026 to 2038.
The approved schedule includes five cargoes in 2026, six in 2027 and three in 2028. The price for these cargoes will be linked to the JKM index plus $0.0875 per MMBtu.
Another three cargoes will be purchased in 2028, while Bangladesh will purchase 10 cargoes annually from 2029 through 2038.
The price for these cargoes will be calculated at 121 percent of the Henry Hub (HH) index plus $5.20 per MMBtu.
The Energy and Mineral Resources Division said the volatility in international energy markets and the ongoing geopolitical tensions have made ensuring a secure and uninterrupted fuel supply a priority.
It said the government is therefore pursuing both short- and long-term LNG procurement arrangements to meet domestic gas demand and strengthen the country's energy security.
