No LNG Supply Shortage Expected in October-November, Petrobangla Says

Staff Report | PNN

Bangladesh Oil, Gas and Mineral Resources Corporation (Petrobangla) has said there will be no shortage of liquefied natural gas (LNG) imports in the country over the next two months, October and November. A total of 19 LNG cargoes have been secured for import during the two months based on projected demand.

According to Petrobangla sources, 10 LNG cargoes will arrive in Bangladesh in October. Of these, three cargoes will be procured from the spot market. Two cargoes will arrive under long-term contracts, while another five will be procured under short-term contracts.

The import plan for November includes nine cargoes. Six of these will be supplied under long-term contracts, while three will be procured through short-term agreements. The LNG has been purchased from various sources, including the United States, Nigeria, Angola and Australia.

Petrobangla Chairman Md. Abdul Mannan said there would be no problem with LNG cargoes for October and November. He said 19 cargoes had been secured according to demand, meaning there was no concern about a shortage in the supply of LNG-derived gas to the national gas grid.

He said plans are being prepared every month for LNG imports for the following three months to ensure the necessary supply. Petrobangla expects this approach to help maintain continuity in the supply of gas produced from LNG.

Petrobangla Director (Finance) Mizanur Rahman also confirmed the import of 19 LNG cargoes. He said LNG is being procured from long-term and short-term contracts as well as the spot market according to requirements. As a result, he said, there is no expectation of any major supply problem in the coming months.

According to sources at Rupantarita Prakritik Gas Company Limited (RPGCL), each LNG cargo contains approximately 3.2 million MMBtu of gas. Based on that estimate, the 19 cargoes secured for the two-month period will amount to approximately 60.8 million MMBtu of imported LNG.

After arriving in Bangladesh by sea, LNG is first transported to designated terminals. There, the liquefied gas is converted back into gaseous form through a regasification process. The gas is then supplied to the national grid through pipelines.

Petrobangla oversees LNG imports based on approval from the Energy Division. RPGCL is responsible for activities including cargo scheduling, execution and implementation of contracts, and terminal operations.

Under long-term contracts, QatarEnergy, based in Qatar, and Oman’s energy and commodity trading company OQ Trading supply LNG to Bangladesh. When necessary, LNG is also procured through short-term contracts with OQ Trading and from the spot market.