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Govt to buy more LNG

Published : 23 Mar 2023 10:47 PM

The government will purchase 33.60 lakh MMBtu liquefied natural gas (LNG) worth around Tk 579 crore from the United States to ramp up electricity production ahead of Ramadan and the summer season.

As part of the government move, the Cabinet Committee on Government Purchase (CCGP) approved seven proposals including procuring LNG from the USA.

The approvals came from the meeting of the CCGP virtually with Finance Minister AHM Mustafa Kamal in the chair.

Earlier, on 9 March, the purchase committee approved the procurement of 33.60 lakh MMBtu of LNG from Total Energies Gas and Power of Switzerland for Tk 618.21 crore.

Briefing reporters after the meeting virtually on Thursday, Cabinet Division additional secretary Sayeed Mahbub Khan said that the CCGP meeting approved seven proposals.

He said that following a proposal from the Ministry of Agriculture, Bangladesh Agricultural Development Corporation (BADC) would procure some 40,000 metric tons of DAP fertilizer from OCP, SA, Morocco under state-level agreement with around Tk 262.13 crore where per ton fertilizer would cost $610 against the previous price of $710.

He said that another proposal from Bangladesh Chemical Industries Corporation (BCIC) under the Ministry of Industries, has been approved to procure some 30,000 metric tons of bagged granular fertilizer under the 14th lot from KAFCO, Bangladesh with around Tk 105.43 crore with per ton fertilizer costing $327.62 down from the previous price of $330.62.

He said that the CCGP meeting approved a proposal from the Energy and Mineral Resources Division under which the Petrobangla would procure some 33.60 lakh MMBtu LNG from M/S Excelerate Energy LP, United States with around Tk 578.65 crore with per MMBtu LNG costing $13.69 against the previous price of $14.66.

Mahbub said that the state-run Trading Corporation of Bangladesh (TCB) under the Ministry of Commerce would procure some 8,000 metric tons of lentil from Uma Expo Pvt Ltd India (local agent: Future Infrastructure Development Ltd. Dhaka) with around Tk 72.91 crore with per KG lentil costing Tk 91.14.

He informed that following a proposal from the Internal Resources Division (IRD), the National Board of Revenue (NBR) would procure the Software Solution and Automated Risk Management System software from Webb Fontaine Group, Fz-LLC, Dubai, the UAE with around Tk 217.99 crore.

Besides, Mahbub said that the CCGP meeting decided to appoint the joint venture of SMEC, Australia, OCG, Japan, Dohwa Engineering Company Korea, ACE, Bangladesh and DDC, Bangladesh as the consultants for the "Technical Assistance for Road Transport Connectivity Improvement Project Preparatory Facility" with around Tk 44.42 crore under the Road Transport and Highways Division.

The meeting also approved a cost variation proposal from the Road Transport and Highways Division.